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What is a FedEx Residential Surcharge?

By Last updated on: July 27, 2020

FedEx defines a residential surcharge as a shipment addressed to a home or private residence, including locations where a business is operated from the home, and/or a shipment in which the shipper has designated the delivery address as residential.

FedEx Residential Surcharge: A residential delivery charge applies to shipments addressed to a home or private residence. Including locations where a business is operated from a home, or to any shipment in which the shipper has designated the delivery address as a residence.

FedEx residential surcharge

UPS and FedEx charge a higher rate for residential addresses. In short, this additional charge is due to the inconvenience of delivering one shipment to a single location. In comparison to possible multiple deliveries with a commercial address.

How Much is the FedEx Residential Charge?

Service20192020
Ground$4.40 $4.65
Home Delivery$3.80$4.00
Air$4.55 $4.65
FedEx residential surcharge

FedEx One Rate to a residence

FedEx One Rate is a flat rate shipping option introduced in 2013 and available for qualifying FedEx Express U.S. shipments. Subsequently, these packages must be in FedEx Express packaging. However, One Rate flat rate shipping price already includes residential surcharges.

FedEx SmartPost to a residence

FedEx SmartPost is perfect for shipping low-weight residential packages directly to the customer. SmartPost package sizes should be a maximum of 70 lbs or 130″ in length plus girth. However, residential surcharges do not apply to this service.

FedEx Residential Delivery Hours

Residential delivery by FedEx generally occurs anytime between the hours of 9:00 a.m. and 8:00 p.m. to residences.

Historical FedEx Residential Delivery Costs:

FedEx2020201920182017201620152014201320122011
Residential Ground $4.65$4.40$4.15$3.85$3.65$3.55$3.40$3.20$3.00$2.75
Residential Home Delivery$4.00$3.80$3.60$3.45$3.25$3.10$2.90$2.80$2.55$2.20
Residential Air $4.65$4.55$4.15$4.00$3.65$3.50$3.35$3.20$3.00$2.75

How to Reduce FedEx Residential Delivery Costs  

Many shippers never realize there are options available to reduce the impact of FedEx residential surcharge. For example, the shipping service options UPS SurePost and FedEx SmartPost. These utilize the United States Postal Service (USPS) to make final-mile delivery. Therefore, if you are a large volume shipper, optimizing your carrier contract is the way to reduce FedEx residential delivery surcharges. Contract optimization experts identify areas where you could save money. In conclusion, most customers find themselves saving 10-20 percent per year. Contact Refund Retriever to get started.

Brian Gibbs

Author Brian Gibbs

More posts by Brian Gibbs

Brian Gibbs | President of Refund Retriever

Brian Gibbs founded Refund Retriever in 2006 while running his first eBay based business and seeing the shortcomings of other shipment auditing companies. Refund Retriever's primary focus is FedEx and UPS parcel invoice auditing. After graduating from Texas A&M University in 2001, he then graduated from the University of Houston in 2004 with a JD and MBA. Gibbs has been featured in Forbes, Entrepreneur and other publications discussing parcel auditing, shipping, e-commerce and more. Learn more at www.refundretriever.com or call (800) 441-8085 for more information.

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