Understanding FedEx Ground Economy

Formerly FedEx SmartPost

FedEx Ground Economy, previously known as FedEx SmartPost, is a unique shipping service that combines the efficiency of FedEx’s Ground service with the extensive reach of the U.S. Postal Service. This service is particularly beneficial for shipping low-weight residential packages directly to your customers' doors.

How does FedEx Ground Economy work?

With FedEx Ground Economy, FedEx delivers packages to the post office nearest to the final destination. The USPS then takes over, usually delivering the packages to customers the next day. This service is ideal for packages that weigh a maximum of 70 lbs or measure 130" in length plus girth. It's important to note that fuel surcharges and dimensional weight do apply to FedEx Ground Economy packages.

FedEx Ground Economy has specific requirements for package dimensions:

  • The length, width, or height of the package cannot exceed 60 inches for all FedEx Ground Economy services.
  • For packages weighing less than 1 lb., the dimensions of length plus girth (L + 2W + 2H) cannot exceed 84 inches.
  • For packages weighing 1 lb. or more, the dimensions of length plus girth (L + 2W + 2H) cannot exceed 130 inches.

These dimension requirements ensure that your packages can be efficiently processed and delivered to your customers' doors.

Generally, FedEx Ground Economy takes 2–7 business days based on the distance to your destination. This timeline may extend for destinations outside the contiguous 48 states. The service operates from Monday through Saturday.

Limitations of FedEx Ground Economy

There are certain services that FedEx Ground Economy does not offer, including:

  • Collect on delivery
  • Money-back guarantee - If lost or damage won't be able to claim it
  • Declared value
  • Signature Proof of Delivery
  • Evening or appointment delivery
  • Hazardous materials service

2023 FedEx Ground Economy other fees

FedEx Ground Economy also includes additional fees for specific services:

  • Non-Machinable: $5.70 per package
  • Delivery and Returns Surcharge: $1.00 per package
  • Package Relabel: $0.90 per package
  • Third-Party Billing Surcharge: 4.5% of charges

Shippers can negotiate better discounts for FedEx Ground Economy, much like any other ground or express service. It's crucial to address your base and earn discount levels to match the characteristics of your shipping spend. 


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