When it comes to business shipping, most companies automatically think of FedEx and UPS. But the United States Postal Service (USPS) can be a solid option for business users, especially for certain types of packages and destinations.
So whether you’re just starting out and evaluating business shipping options or you’re thinking of switching to USPS over your current provider, this guide has you covered. It’s also helpful for businesses currently using USPS and deciding if it makes sense to keep using them.
Quick Overview of USPS For Business Shipping
USPS ships over 7.3 billion packages per year, which is more than both UPS and FedEx (approximately 5.7 billion and 4.5 billion, respectively).
While the post office might have once been overlooked by business users, the USPS has evolved into a legitimate option for companies shipping packages worldwide. And they have services specifically designed for business users, including volume discounts.
The best part about USPS is that it serves every address in the United States (whereas private carriers don’t have this same government mandate).
That said, USPS wasn’t originally built for business shipping. For some use cases, it’s a bit more limited and sometimes more expensive compared to private shipping carriers.
Pros
- No residential surcharges.
- Delivers to PO boxes, military bases, and diplomatic addresses (APO/FPO/DPO).
- Free boxes and shipping supplies.
- Cost-effective for lightweight packages.
- Saturday delivery is included at no extra charge
- Integrates with major platforms like Shopify, Amazon, and eBay.
Cons
- Tracking isn’t as detailed or precise compared to FedEx and UPS.
- Stricter size and weight limitations on packages, which is a problem for larger items.
- Slower delivery times via ground shipping versus private carriers (especially cross-country)
- Limited insurance coverage on lost or damaged items.
- Fewer pickup options, so you either have to schedule in advance or drop packages at a local post office.
- Customer service isn’t as great compared to private carriers.
USPS Business Shipping Rates
Any business can access commercial pricing by using online shipping platforms, approved postage vendors, or USPS accounts. Discounts typically range from 5-15% off retail post office prices, depending on the service.
There are literally thousands of different prices on USPS business shipping rates, which are based on factors like weight, size, and shipping zone.
But I put together some of the most commonly used business shipping options and prices to help give you a baseline of what to expect. All of the rates below reflect the commercial discounts, and USPS pricing that was last updated on July 13, 2025:
Priority Mail (2-3 business days)
- Padded Envelope — $10.50
- Small Box — $10.60
- Medium Box — $18.50
- Large Box — $27.10
Priority Mail is all flat-rate pricing. This is ideal for businesses shipping heavier items that fit in smaller packages. As long as the item fits in the box, you’ll pay the same rate regardless of the shipping zone.
For example, a ten-pound item shipping across the country is the same price as a five-ounce item shipped across town. They’re both $10.60.
Each package also includes $100 of insurance and tracking at no additional charge.
Priority Mail Express (1-3 business days)
- Envelope — $27.20
- Large Envelope — $27.50
- Padded Envelope — $27.70
Priority Mail Express is the fastest business shipping option from USPS, and it’s the only service with a money-back guarantee. It’s available every day of the year, including Sundays and holidays in most areas, making it one of the most reliable last-minute shipping choices for businesses.
It’s designed for smaller and lightweight items that can fit into an envelope (like jewelry). And while it’s more expensive than standard Priority Mail, it’s generally cheaper than using FedEx Overnight or UPS Next Day Air.
USPS Ground Advantage (2-5 business days)
USPS Ground Advantage is a newer ground service that consolidates some older shipping options. It’s meant to be more straightforward, but if you look at the pricing chart your head will spin.
It’s priced by weight up to every single pound between 1 and 70, so I just highlighted a handful of rates above so you can see how weight increases the price:
- 4 oz — Starts at $4.20
- 12 oz — Starts at $5.38
- 1 pound — Starts at $6.80
- 5 pounds — Starts at $8.53
- 20 pounds — Starts at $15.24
- 50 pounds — Starts at $37.44
- 70 pounds — Starts at $46.69
All of the rates above reflect Zone 1 (local) pricing. There are 9 total zones, with prices increasing at each level.
With lighter items, the increases aren’t quite as substantial. For example, a 4-ounce package shipped to Zone 9 is just $0.65 more compared to Zone 1. But a 20-pound package is more than double the price shipped to Zone 9 vs. Zone 1 ($33.97 vs. $15.24).
Despite this complexity, USPS Ground Advantage is one of the most affordable ways for businesses to send heavier items under 70 pounds, particularly for shorter distances.
And it’s also a great option if you’re sending items to rural or remote locations, as these would often be surcharged by other carriers.
USPS Business Features and Services
Most of us are pretty familiar with what the post office does for the average citizen. But here’s a closer look at some specific features designed for business customers.
Business Rate Card
The Business Rate Card is another discount program that offers additional savings beyond the standard commercial pricing. Qualifying businesses can get extra discounts on Priority Mail, Priority Mail Express, and USPS Ground Advantage services when enrolled through their USPS business account.
Unlike the standard commercial prices that are available to any business shipping online, the Business Rate Card requires businesses to opt in, and typically has minimum volume requirements.
Enrollment is pretty straightforward and you can access discounts immediately after your account has been approved.
Negotiated Service Agreements (NSAs)
This service is essentially the USPS’s enterprise-level pricing program that’s exclusively reserved for high-volume business shipping. The terms of these deals are unique, but they offer the lowest possible rates.
NSAs are typically reserved for businesses shipping tens of thousands of parcels per year, and you’ll need to provide some historical context to accurately forecast your shipping.
Custom contracts like this definitely aren’t as common for the average USPS business customer. But they do exist.
Click-N-Ship
Click-N-Ship is USPS’s primary online shipping platform. It’s where you’ll purchase postage, print shipping labels, and manage all of your shipments online.
Businesses can access commercial shipping rates directly through Click-N-Ship, which eliminates the need to visit the post office to get these deals.
The platform definitely isn’t as powerful as other third-party shipping software on the market. But it’s 100% free and convenient for smaller businesses.
International Shipping
USPS offers shipping services to over 180+ countries worldwide.
This is better for smaller packages and documents as opposed to powering a global ecommerce operation. Delivery times aren’t always guaranteed, and tracking isn’t super reliable once parcels leave US borders.
Customs documentation and tracking services are included, which helps less experienced businesses navigate international shipping. You can also access online tools for things like customs forms and taxes.
Free Shipping Supplies
One significant advantage of using USPS for business shipping is the availability of free supplies. Envelopes and boxes can be ordered at no cost, which can save your business thousands of dollars in packaging expenses.
The only real drawback here is that the boxes are branded with USPS logos. So luxury or high-end ecommerce brands tend to avoid using their own custom boxes.
But depending on what you’re shipping, the cost savings can definitely outweigh your branding concerns.
Package Pickups
USPS offers free package pickup services for businesses. Postal carriers can collect outgoing packages during their regular route, which eliminates extra trips to the post office and streamlines your fulfillment process.
However, this isn’t always as reliable compared to FedEx or UPS pickups. It’s not necessarily designed for high-volume package shipping.
If you absolutely need parcels picked up at a specific date or time, you’ll need to schedule them in advance.
Media Mail and Library Mail
These are two specialized USPS services that offer even lower rates when shipping books, educational materials, and approved media items.
They’re designed specifically for educational content, so only a fraction of businesses can qualify for these services. But if your business happens to be selling certain educational materials online, this is by far the most economical way to deliver those packages.
Shipping times are a bit slower (roughly 2-8 business days). But again, for the cost, it’s tough to complain.
Is USPS Good for Business Shipping?
USPS can be good for business shipping but it doesn’t make sense for every business. The answer largely depends on what you’re shipping, your shipping volume, and customer expectations.
It’s good for businesses that want to control costs while sacrificing delivery speed. If you’re shipping lightweight items and serving customers in rural areas, the USPS is typically the most cost-effective business shipping option.
But if you’re guaranteeing delivery times to customers or shipping large, heavy items, USPS probably won’t work for you. While the post office has made substantial improvements in recent years, it still hasn’t quite caught up to the private carriers in terms of advanced logistics and service reliability.
Scenarios When USPS is Good for Business Shipping
Here are some common examples of when USPS makes sense for businesses:
- You’re selling lightweight ecommerce shipments (items under 2 pounds).
- Lots of your customers are located in remote, rural locations.
- You sell a high volume of products on thin margins.
- Your products are heavy but compact (fitting in smaller flat-rate boxes).
- You’re selling smaller packages internationally to select countries where the postal service has favorable international agreements.
In these scenarios, USPS is the most cost-effective business shipping option. The pricing is straightforward and you can save a ton of money without surprise fees.
When Businesses Should Avoid USPS for Business Shipping
On the flip side, there are plenty of scenarios where USPS just isn’t the right carrier for certain brands:
- You have large or heavy shipments (once you move beyond 20-30 pounds, USPS rates skyrocket).
- Your customers expect a guaranteed delivery date.
- You’re selling high-value items that require better tracking, security, and insurance.
- Your business has a premium or luxury brand positioning.
- Your operations and supply chain are complex, requiring detailed tracking, signature confirmations, and specialized handling.
Understanding these limitations can help you avoid a situation where your business tries to save a few bucks on shipping but ultimately hurts your brand reputation in the process.
USPS Alternatives for Business Customers
If you’re still unsure whether USPS is right for your business, let’s quickly compare it to some of the other carriers on the market.
USPS vs. FedEx
FedEx has historically positioned itself as the premier shipping option for businesses. They have superior tracking technology compared to the postal service, guaranteed delivery times, and expensive international capabilities.
For businesses that require reliable overnight shipping or two-day delivery, FedEx offers service levels that can’t be matched by USPS.
But this premium service comes at a premium price. FedEx rates are typically 20% to 40% higher compared to similar USPS services. You’ll be hit with additional fees for residential deliveries, fuel surcharges, and other enhancements.
USPS vs. UPS
UPS is often the most cost-effective way for businesses that ship large or heavy packages and businesses operating at higher volumes. UPS Ground typically offers better rates than USPS and FedEx for packages over five pounds, and they have an extensive pickup network which is convenient for high-volume shipping.
Similar to FedEx, UPS charges residential delivery fees and a range of other fees that constantly raise your shipping costs. But you can negotiate solid custom rates with UPS if you’re willing to commit to shipping volumes or multi-year contracts.
UPS is sort of a middle-ground between the postal service’s low costs and FedEx’s premium positioning. So if your business is looking for a balance between the two, UPS might make the most sense.
Other Alternatives
USPS, FedEx, and UPS are definitely the three biggest names in business shipping. But there are several other regional and specialized carriers that are worth considering if your business has unique needs, including:
- DHL: Better for international shipping, especially to Europe and Asia.
- OnTrac: Provides next-day and two-day delivery in western states at rates that are often cheaper than national carriers.
- LaserShip: Focuses on last-mile delivery in eastern states with competitive rates for lightweight ecommerce packages.
- 3PLs: Third-party logistics providers like ShipBob or Amazon FBA can be a good way to negotiate bulk rates from multiple carriers without having to guarantee a massive shipping volume.
The key is finding the sweet spot between cost, service, and reliability that ultimately aligns with your business goals. No carrier is going to be perfect for everything.
Final Thoughts
Overall, USPS can be a solid choice for business shipping. It just depends on exactly what you’re selling and how much you’re shipping.
You need to understand if the postal service’s advantages fit with your company’s operational needs. If so, go for it. Otherwise, you may need to consider an alternative like FedEx, UPS, or a specialized carrier.
Regardless of which carrier you choose, you should constantly audit your shipping costs and negotiate better rates. If you’re spending a significant amount of money on shipping that’s eating into your profits, our team here at The Cost Guards can help you uncover unique savings opportunities for your business.
Contact us today for a free audit to find out how much your business could be saving.