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Residential or Commercial Address?

By Last updated on: December 18, 2018

How do I know if a shipping address is residential or commercial, and why does it matter?

What is residential or commercial?

  • A residential delivery goes to a home or private residence, including a business operating out of a home.
  • A commercial delivery goes to a business.

Residential vs Commercial Refund Retriever

Why does it generally cost less to ship to a commercial address? That’s because it’s less expensive to deliver to densely clustered commercial addresses than to residences often scattered throughout sprawling neighborhoods.

FedEx Residential Fees 

FedEx ServicesCost
Domestic Air Express Services and all Ground Services$3.50 per package
International Air Express Services$3.50 per package
FedEx Home Delivery$3.10 per package

UPS Residential Fees 

UPS ServicesCost
Air Express Services and 3 Day Select$3.50 per package
Ground Service$3.10 per package
Standard to/from Canada and Standard from Mexico:$3.10 per package
International Air Services$3.50 per package

Can residential surcharge fees be waived or negotiated?

YES! A shipper can negotiate with FedEx and UPS to have residential fees either reduced or fully eliminated. A large volume shipper can combine transportation charge discounts with accessorial fee discounts. A successful contract negotiation is a balancing act. Some shippers choose to receive a lower transportation fee discount in exchange for a full waiver of the residential surcharge.

Refund Retriever can help you with any questions you may have regarding residential versus commercial shipping.  For more information on shipping services or to learn more about our parcel auditing services, please contact Refund Retriever at 800-441-8085 or

Brian Gibbs

Author Brian Gibbs

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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 or call (800) 441-8085 for more information.

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