United Parcel Service is deepening its investment in small-and-medium businesses (SMBs), a customer segment it has cultivated for over two years as a profitability driver while scaling back low-margin, last-mile deliveries for large e-commerce shippers.

On Thursday, the Atlanta-based parcel logistics giant introduced a suite of digital tools designed to streamline the shipping experience for sole proprietorships and other small enterprises. The updates include a new online pickup dashboard, faster label creation, and a refreshed mobile app that integrates directly with The UPS Store.

The centralized pickup dashboard consolidates scheduling, management, and tracking into a single interface, allowing customers to adjust pickup times based on when shipments are actually ready rather than adhering to a fixed schedule. Through its "Smart Pickups" feature, businesses can save up to 50% compared to the cost of a daily pickup, UPS said in a news release.

A unified view of shipment details and service options also simplifies label creation, reducing repetitive data entry and accelerating fulfillment.

UPS leadership has built its growth strategy around industry verticals — small businesses, healthcare, automotive, and B2B — that demand more complex logistics services commanding premium rates relative to transporting a single online order from a warehouse to a residential doorstep. As part of this strategic pivot, UPS relinquished handling of approximately 2 million Amazon packages per day and is downsizing its delivery network to match lower overall volumes.

The company reported Tuesday that small-business package volumes grew 4.3% year over year during the second quarter. In the first quarter, when average daily volume rose 1.6%, SMBs accounted for 34.5% of total U.S. domestic volume — the highest small-business penetration in company history — and 60% of volume in Canada.

"SMBs are critical to UPS. Often the revenue per piece is higher and helps optimize daily van capacity with smaller pickup areas in the driver's return route," said parcel consultant Mark Waverek in an email exchange.

Smaller companies frequently lack access to the deep shipping discounts that large shippers negotiate with carriers, making UPS a default option for many. Reducing friction points and delivering reliable nationwide service are key to attracting these customers, Waverek noted.

Gerryann Agovino, head of marketing and strategic partnerships at LJM Group, described the digital upgrades as expected offerings in the current landscape. "These are table stakes for modern shipping platforms. Every major carrier and most multi-carrier shipping software providers have been investing in similar capabilities for years," she said, while acknowledging that the tools reflect UPS's broader customer acquisition strategy.

Both UPS and FedEx have made small enterprises a strategic priority, as they generate higher-quality revenue than e-commerce last-mile deliveries. With shipping software platforms like Pirate Ship and ShipStation also competing for SMB loyalty, carriers face pressure to differentiate beyond pricing alone.

Source: FreightWaves