Economy Shipping: What It Is, How It Works and When It Makes Sense

Economy shipping is the most cost-effective way to send a package. But, it’s also the slowest. 

This shipping method is ideal for customers who:

• Want an affordable shipping service.
• Are happy to accept longer delivery times. 

For example, let’s say you’re stocking up on diapers for your little one because they’re on sale over Black Friday. There’s no rush, and you just want the cheapest way to get your diapers. Economy shipping options are perfect for you. 

What about when you’re the sender? Economy shipping is a great choice when:

1. You’re an e-commerce business with customers who (like our diaper shopper above) don’t mind waiting a couple of extra days for a cheaper, non-urgent delivery service. 
2. You’re a private person who wants to send something to a friend or relative without breaking the bank. If you’re organized enough to ship your gifts a week or more before they’re needed, you can save a lot of money.

Most of the big couriers offer economy shipping — or some version of it — but they might call it something else. 

Examples of economy shipping from different carriers

• FedEx: FedEx Ground (for domestic shipments)
• UPS: UPS Ground (for domestic shipments)
• DHL: DHL Economy Select (for international shipments within Europe only)
• USPS: Priority Mail, USPS Ground Advantage and USPS First-Class Mail

How is economy shipping different from other shipping methods?

The major factors that affect shipping costs and transit times are:

• The package itself (weight, size, and shape)
• Distance (local, national, or international). Some 
• Shipping speed (economy, standard, expedited)

When it comes to shipping speed, delivery services give customers an economy option because they understand that in many cases, affordable delivery is more important than fast delivery. 

Here’s a table to show the key differences between economy shipping and other shipping methods, so that you can easily find the best shipping solution for your needs:

How much does economy shipping cost?

The exact cost of sending a package via economy shipping depends on:

• Where you’re shipping from and to. The more remote the locations and the more shipping zones are involved, the higher the cost. 
• When you’re shipping. Shipping costs may be higher at busy times of the year, like before Christmas.
• The size, weight, and shape of the package.

Most of the big courier services have calculators that you can use to find the right shipping method for your needs. Here’s how to navigate some of the biggest:

1. Fedex economy shipping

Fedex has a good, easy–to-use shipping rates calculator. Just click on “Rate & Ship” at the top of the page to access it. You’ll need the following information:

• Your address, and the address you’re shipping to. 
• The packaging type you are using. You can get the details about the different Fedex packaging types here. 
• The value of your package, if it’s over $100. Fedex accepts liability up to $100 as part of its standard shipping rates; for more, you have to pay extra. For a really valuable package, you may want to consider additional insurance. 
• The weight and size of your package.
• Your shipping date. 

2. UPS economy shipping

You can calculate UPS shipping rates easily with the following information:

• The addresses you are shipping from and to. 
• Your shipping date. 
• The value of your shipment. 

Once you’ve filled in these basics, UPS displays all your shipping options, with different drop-off times and shipping times, on the right. The economy UPS Ground option will be right at the bottom. 

You’ll also have the option to choose UPS Simple Rate, which is their name for flat rate shipping. The prices are:

• Extra Small: Starting at $10.85
• Small: Starting at $14.15
• Medium: Starting at $16.90
• Large: Starting at $22.30
• Extra Large: Starting at $27.60

At this point you can also choose value-added services like requiring a signature as proof of delivery, adding special handling instructions or including a return label. 

3. DHL

We really like the DHL shipping rates calculator — it’s simple and friendly compared to the others, and you can get international or domestic shipping rates from the same screen. 

💡Important to know: DHL doesn’t have an economy shipping service in North America unless you’re a business! They offer two economy shipping services, depending on where you are:

1. In Europe, you can use DHL Economy Select.
2. In the United States, businesses can choose from a variety of domestic services, including a ground shipping service that has a 3-8 day delivery time. 

As with any shipping service, you will need to know:

• Zip codes or postal codes for the addresses you are shipping from and to. 
• The weight of your package.

If you don’t know the exact dimensions of your package, the DHL site has a useful “more or less” size guide that will help you get close to an accurate quote. 

DHL automatically gives you a quote based on the next available shipping day, which helps get a price more quickly. You can always change the shipment date to suit you better. 

4. USPS Economy shipping

USPS Ground Advantage is an economical shipping service that will deliver within 2-5 business days.  

You can calculate USPS shipping rates on their websites. The calculator is not quite as easy to use as some others, but it’s still a good way to get an idea of your shipping cost in advance. 

If you’re a small online business, you’ll probably have browser tabs for these sites permanently open! If you’re shipping items often, you’ll get cheaper rates if you open a business account. Check out these services:

• Fedex: Small Business Center
• UPS: Small Business Solutions or the UPS Store
• DHL: Small Business PartnerSHIP Program 
• USPS: Small Business Solutions

Economy shipping and international deliveries

If you’re sending something internationally, and it’s not time-sensitive, there are worldwide economy delivery options. 

Here are the most important differences between domestic shipping and international shipping:

1. Shipping times: International economy shipping can take anywhere from 1 to 4 weeks or more, depending on the origin and destination countries.
2. Cost: International economy shipping is more expensive than domestic options. The package has to travel further, and extra handling is needed to send something to another country.
3. Tracking: Tracking information for international economy shipments isn’t as detailed. It can be harder to keep track of shipments, especially once your package enters another country and is in the hands of their local postal service.
4. Customs and import taxes: All shipments must clear customs at the destination country. This can can cause delays, especially if paperwork is missing or incomplete.
5. Size and weight limitations: International deliveries come with strict limits. Oversized and irregular packages are usually charged an additional fee.

5 reasons why your business should offer economy shipping options

For customers wanting non-urgent shipments, cost is one of the biggest benefits of economy shipping services. And in turn, this shipping method also offers advantages for businesses. These include:

1. Lower cost

Economy shipping is a cost-effective option for customers, e-commerce retailers, and courier services alike. This is because shippers can use slower modes of transport (like trains and trucks). They can also lower costs by consolidating shipments. 

2. Order consolidation

If a company has a few orders going to the same place, or to a few locations in the same area, it makes sense to put everything together. This is much more convenient and cost-effective than sending each order individually. 

By offering economy shipping services, businesses and couriers can wait for a number of orders to come in, then put everything together before shipping it out.

3. Scalability

Economy shipping makes it easier for businesses to scale their shipping operations without dramatically increasing their shipping costs. 

4. Expanded customer base

If businesses let customers choose from different shipping options, they can appeal to a wider audience — especially if they also offer products and services at different prices. This is important for e-commerce businesses, because their customers are usually very price sensitive.

5. Sustainability

Individually packing and shipping every single item uses a lot of packaging, takes up a lot of space, and makes the whole transportation process less efficient. By consolidating orders and using slower shipping methods, retailers can reduce a lot of waste. 

What about free shipping?

Economy shipping can be a great way to attract new customers, because it gives people the option to wait a bit longer in exchange for lower prices.

But don’t all customers LOVE free delivery? Wouldn’t free shipping be a better way to attract customers?

Not exactly. Offering free shipping as a loss leader to build up your market share is a great strategy for a big brand like Amazon, because they can afford to carry the losses that come with paying for shipping. 

But small businesses can’t afford to bear this cost. Because, let’s face it: free shipping isn’t free. Someone’s paying for it, and if it isn’t the customer, it’s the business.