How Does FedEx SmartPost Work? A Helpful Guide.

In the ever-changing world of shipping and logistics, businesses are looking for reliable and cost-effective shipping solutions to meet customer expectations. FedEx offers SmartPost to meet these demands. In this guide, we'll explore what FedEx SmartPost is, its benefits, transit speed, cost-effectiveness, and how it can elevate your shipping strategy.

Understanding FedEx SmartPost

First–SmartPost actually doesn’t exist anymore. In 2021 it was renamed to FedEx Ground Economy. While the name has changed, some FedEx labels continue to be printed with an “S” (for SmartPost) and the service remains the same. Merchants and fulfillment centers may continue to reference this service as Ground Economy. 

FedEx Ground Economy is a collaboration between FedEx and the United States Postal Service (USPS). It combines the vast network of FedEx with the local delivery expertise of USPS, creating an efficient and cost-effective shipping solution.

You can ship packages up to 70 lbs using Ground Economy. However, the ideal package is between one and ten pounds. FedEx Ground Economy is tailored to lightweight, non-urgent packages. In these situations, Ground Economy may be exactly what you need. 

Let’s discuss some of the benefits.

Benefits of Using FedEx Ground Economy

Delivery Network

USPS delivers packages to almost every address in the United States daily. By using Ground Economy you take advantage of this delivery network, while also gaining the efficiency and speed of FedEx’s nationwide transportation system.

Cost Savings

One of the primary advantages of Ground Economy is its cost-effectiveness. By utilizing USPS for the final delivery leg, businesses can enjoy lower shipping rates. It also eliminates residential delivery surcharges normally assessed by FedEx. 

Advanced Tracking

FedEx Ground Economy provides end-to-end tracking. While USPS tracking is generally reliable, sometimes packages miss a scan. With FedEx every package is scanned on pick up. This provides a satisfying customer experience, decreasing time spent on customer service, and boosting customer loyalty.  

Environmental Impact

By optimizing delivery routes and using existing USPS infrastructure, Ground Economy contributes to a more sustainable and shipping process. 

Transit Speed and Delivery Time

While FedEx Ground Economy is known for its cost-effectiveness, it's essential to consider transit speed and delivery times. This service generally takes longer than FedEx's premium options, because it uses a combination of FedEx's long-haul transportation and USPS's local delivery. The estimated transit time is 2-8 days nationwide. This is slower than the estimated transit for FedEx Ground at 1-5 days.

For businesses (or customers) prioritizing cost savings over expedited delivery, the slightly extended delivery times of Ground Economy are often a reasonable trade-off. However, it's crucial to set clear expectations with customers regarding the estimated delivery time frame.

Cost-Effectiveness of FedEx Ground Economy

Though customers love fast shipping, high shipping rates are a top reason for cart abandonment. To prevent loss of sales, many online stores have begun using a hybrid shipping service–like FedEx Ground Economy–to meet customer needs. 

The collaboration between FedEx and USPS allows for reduced shipping rates compared to premium FedEx services. The rates can be even lower than USPS at times. This makes Ground Economy particularly appealing for businesses.

How to Leverage FedEx Ground Economy for Your Business

Evaluate Your Shipping Needs

Assess your business's shipping requirements and consider factors like package size, weight, destination, and delivery timeframes. This will help you determine if Ground Economy is the right fit for your brand.

Set Clear Customer Expectations

Transparency is key when using Ground Economy. Clearly communicate estimated delivery times to your customers. This will mitigate any concerns while enhancing the overall customer experience.

Conclusion

In conclusion, FedEx Ground Economy is a strategic solution for businesses seeking a cost-effective and reliable shipping method. By leveraging the strengths of both FedEx and USPS, Ground Economy provides businesses with an extensive delivery network, cost savings, and a streamlined shipping experience.

As you explore the possibilities of FedEx Ground Economy for your business, consider your unique shipping requirements and customer expectations. With the right approach, Ground Economy can be a valuable asset in your shipping arsenal.