Previously, we learned that the last mile or final delivery of packages, regardless of distance, is truly where costs add up. Coincidentally, that last mile varies from a few blocks to hundreds of miles. This is where UPS SurePost and FedEx SmartPost (also known as FedEx Ground Economy) can help. SmartPost is a cost-saving option for ground shipping because it reduces FedEx’s workload by utilizing USPS. It also takes longer to deliver, and while it offers unified tracking, customers still find it confusing.
Estimated reading time: 4 minutes
What is FedEx SmartPost?
FedEx Ground Economy, formerly FedEx SmartPost, is a shipping service that utilizes FedEx’s Ground with final delivery by the U.S. Postal Service. With SmartPost, FedEx delivers packages to the post office closest to the final destination. Then, USPS delivers them to customers, usually the next day.
FedEx Ground Economy is available to U.S. origins in the 48 contiguous U.S. states. FGE is available for residential destinations in the 50 U.S. states, Puerto Rico, and the U.S. territories, including P.O. boxes and military APO/FPO/DPO destinations.
How does FedEx SmartPost work?
FedEx SmartPost is ideal for shipping low-weight residential packages directly to your customers’ doors. Specifically, package sizes should be a maximum of 70 lbs or 130″ in length plus girth. Fuel surcharges and dimensional weight does apply to FedEx SmartPost packages.
How long does it take for SmartPost to deliver?
Generally, SmartPost (FedEx Ground Economy) takes 2–7 business days based on your destination’s distance (more extended time in transit outside the contiguous 48 states). Also, the service days are Monday through Saturday.
The following are not available for FedEx Ground Economy:
- Collect on delivery
- Money-back guarantee – Refund Retriever will not be able to get you refunds.
- Declared value
- Signature Proof of Delivery
- Evening or appointment delivery
- Hazardous materials service
2023 Fees and Other Shipping Information
Delivery Area Surcharge
A delivery area surcharge will apply to FedEx SmartPost shipments destined to select U.S. ZIP codes.
| Contiguous U.S | $3.60 per package |
| Contiguous U.S. Extended | $4.75 per package |
| Alaska | $4.75 per package |
| Hawaii | $4.75 per package |
Non-Machinable: $5.70 per package
A non-machinable charge will be applied to any FedEx Ground Economy package with one of the following characteristics.
- Any item with one dimension measuring more than 27 inches.
- Any item with any two dimensions, each measuring more than 17 inches.
- Items weighing over 35 lbs.
- Any item packaged in a cylindrical shipping tube.
Delivery and Returns Surcharge: $1.00 per package
A per-package surcharge for delivered or returned packages using FedEx Ground Economy services.
Package Relabel: $0.90 per package
A per-package surcharge will be assessed on packages that do not conform to specifications that require over label or hand key.
Third-Party Billing Surcharge: 4.5% of charges
A surcharge will apply to shipments that are billed to a third party. The surcharge applies when an account unrelated to the shipper, as determined by FedEx, is billed as a third party for the shipment. This charge applies to the third-party payer. See the FedEx Service Guide for a Bill Third Party shipment definition.
This fee is 4.5% of transportation charges, surcharges, and additional costs. However, this does not include duties, taxes, and ancillary clearance service fees.
FedEx Ground Economy Contract Rates
Finally, shippers can negotiate better discounts for FedEx Ground Economy like any other ground or express service. Be sure to address your base and earned discount levels to match the characteristics of your shipping spend. Contact us at Refund Retriever to analyze your current shipping spend to get the best shipping rates possible.
Effective March 8, 2021:
FedEx SmartPost and FedEx SmartPost Returns will now be known as FedEx Ground Economy, and FedEx Ground Economy Returns. FedEx will still provide the same residential shipping for low-weight packages. It has a new name: FedEx Ground Economy, formerly FedEx SmartPost.
