With SmartPost, FedEx delivers parcels to the post office nearest their final destination. So why shouldn’t FedEx pay USPS to complete that final leg of deliveries on its behalf? Its mail carriers deliver to every address in the U.S. Postal Service drives those house-by-house routes every day, however. Instead of transporting dozens or hundreds of packages at a time, drivers have to drop them off one by one. But this is the most expensive and inefficient part of the journey for FedEx. Normally, the final leg of this journey is from the final FedEx warehouse to customers’ doorsteps. FedEx transports that shipment through its trucks, warehouses and fulfillment centers. In this hybrid model, shippers give parcels to FedEx in whatever way they normally would. Is FedEx SmartPost right for your business? Let’s find out.įedEx SmartPost is a shipping service that utilizes both FedEx’s ground shipping network and the U.S. It’s also slower, and while it offers unified tracking, customers may find it confusing. USPS carries SmartPost parcels for the final leg of their journey, known as the “last mile.”Ĭheaper than standard ground shipping, SmartPost offers shippers a cost-saving option and reduces FedEx’s workload. But instead of dropping packages on customers’ porches, FedEx merely drops them at the local post office. With SmartPost, FedEx carries packages through its network of warehouse and truck beds. How does FedEx SmartPost work?įedEx now offers a service level called FedEx SmartPost. So FedEx and UPS have each turned to the U.S.’s oldest shipping carrier - the United States Postal Service - for help. Both parties want to do whatever they can to reduce costs. It also puts pressure on shippers, who pay them for that service.

This level of demand puts pressure on shipping carriers, who need to move parcels further and faster than ever – especially priority mail. And they want to pay as little as possible for this service. They want to be able to track their packages through every step of the shipping process. But shipping has become so ubiquitous that customers no longer see it that way.Ĭustomers want items fast, often in as little as two business days, regardless of origin. Shipping networks have expanded dramatically to support sellers and buyers around the globe. To compete on a global scale, they must offer products to customers anywhere and everywhere. Retailers are facing intense pressure in the contemporary economy.

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