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.
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 Services | Cost |
| 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 Services | Cost |
| 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@RefundRetriever.com.
