FedEx Ground Commercial service (FedEx Ground) is used for packages shipped to business addresses, while FedEx Ground Residential (Home Delivery) is designated for shipments sent to residential addresses or homes.
Residential delivery is generally more expensive because the transportation and delivery costs for home addresses tend to be higher. This is due to the fact that residential addresses usually correspond to a single recipient, making the delivery cost higher for the carrier compared to business addresses, which often have multiple recipients, allowing for more consolidated and cost-effective deliveries.
In some cases, a shipper may mistakenly label a package as Commercial (FedEx Ground) when it is actually being sent to a Residential address. When this happens, the carrier applies a Commercial Residential charge instead of the standard Residential charge, resulting in a higher surcharge. This Ground Commercial Residential Charge is a way for carriers to discourage incorrect labeling and encourage shippers to select the appropriate service level.
Our Platform's Actionable Insights highlights this under Service Level Optimization, identifying it as FedEx Ground to Home Delivery. The Platform flags this issue to quantify the financial impact of using an incorrect service level.
