What Is FedEx Ground Economy

Learn how and why you should use FedEx Ground Economy for your business.
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Last update:

June 22, 2023
What is the FedEx Ground Economy and how does it work?  Learn how and why you should use it for your business. We present you with a complete guide. 

FedEx Ground Economy, formerly FedEx SmartPost, is a cost-effective shipping service. With this shipping option, your packages will be picked up by FedEx, but are handed off to your local USPS facility for the “last mile” delivery. 

Many people purchase new items online, and businesses must deliver those items as quickly as possible. This means that leading delivery couriers are under more stress and must deliver more packages in the same period. 

As a result, they have been developing new, alternative delivery methods that should enhance the overall service, help the customers, and grow the businesses. One of those services is FedEx Ground Economy

FedEx Ground Economy Label 

How does the FedEx Ground Economy work?

Usually, the shipping carrier will pick up your package, deliver it to the sorting center, sort it out, and then deliver it to the desired location. This takes time, but in most cases, you will need between 2 - 7 business days to receive the package. 

FedEx Ground Economy works similarly. However, for the last mile of the delivery, FedEx will deliver packages to the post office closest to the final destination. Then USPS will deliver the package to your doorstep. 

That is all because  FedEx would need a separate van, a driver, and more time to visit the isolated location and deliver a package. But, USPS has a much more extensive shipping network to reach all known locations in the United States.

You can consider the FedEx Ground Economy as a money-saving hybrid. It combines services from FedEx and USPS to deliver a package sooner to the targeted location. 

How does the FedEx Ground Economy cost?

Here is an example :

  • 1-pound parcel: $10.10-$12.74 (zone 2 to zone 8)
  • 10-pound parcels: $17.83-$29.56 (zone 2 to zone 8)
  • 30-pound parcels: $26.45-$70.48 (zone 2 to zone 8)

For more information, you can check the FedEx Ground® Economy (by pound) zones and rates..

FedEx has been increasing 4.9% shipping rate per year. Surcharges are climbing even more making shipments more expensive to deliver and also less profit for business owners. FedEx Ground Economy is a valuable method you can use to start saving money with every shipment. 

FedEx Ground Economy Vs. FedEx Ground

At first sight, both of these services do the same job, and they deliver all packages to all destinations. However, there are 2 main ones we need to explain.

The first one is the cost of the service. Ground Economy Is 20% less than the Ground Service.It will be an appealing advantage for all business owners and will make this service more popular in the future. 

However, FedEx Ground Economy is slower than the FedEx Ground service. In general, it takes between 1 - 5 business days longer to deliver a package.

Make sure to inform your customers about the extra time. Not informing them can be linked to several issues such as  low satisfaction rate, refusing to accept packages and more. 

Why should you use FedEx Ground Economy?

As a business owner, you may consider using FedEx Ground Economy if you meet the following criteria.

Also, the pros and cons of this service are described below to give you more room for comparison and to make an easy decision.

  • If your business need to sending packages daily or weekly
  • If you want to deliver to all possible locations in the United States
  • If you want to save money on shipments
  • If your business  isn’t crucial for time sensitive 
  • If you want final delivery to be processed by the USPS

FedEx Ground Economy isn’t useful for time-sensitive shipments. This service would be a good choice for business owners who want to save money on delivering distant locations.

Pros and Cons


  • Packages can be delivered to all locations in the United States. USPS delivers packages to locations that are unavailable for FedEx. The Ground Economy Service can even deliver to military institutions and locations.
  • It is a more affordable option compared to any other. You can save up to 20% per parcel;This will depend on the sending location and frequency. 
  • You can still track the package using the tracking system. It is a bit more complicated than usual, but it will get the job done. 
  • No residential surcharge of FedEx Ground Economy, customers will save even more money.


  • Signature proof delivery, collect on delivery, address correction and money-back guarantee is not available for FedEx Ground Economy.
  • The delivery time is longer. Compared to other services, this service will generally need between 1-7 business days more to deliver a package to the same address.
  • Fees when sending packages outside 48 states are much higher than average.
  • The tracking system is available, but it is too complex and not very accurate. 

Package dimension & weight guidelines

FedEx Ground Economy does come with special requirements that must meet in order for the package to be accepted and delivered.

  • Package length, width or height cannot exceed 60 inches.
  • Package less than 1lb., the dimensions should be a maximum of 84’’ in length plus girth.
  • Package greater than or equal to 1 lb, the dimensions should be a maximum of 130’’ in length plus girth..

Please keep in mind that the above requirements are mandatory. 

Final Words

FedEx Ground Economy is a cost-effective option that can help you save up to 20% on all packages and all shipments within the United States.

90% of Ground Economy uses FedEx service to deliver the package, and only 10% of the shipments are carried by USPS.

As such, it can be delivered to any location. This service is accurate, effective and so beneficial.

Written on:

April 12, 2021
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