Dimensional Weight Shipping and Your Small Business
Gone are the days of shipping items to customers via UPS and FedEx based on only the weight of the package. Starting January 1, 2015, the dimensions of a package will be part of the formula used to calculate what you’ll be paying for all UPS® Ground services and UPS® Standard to Canada, and FedEx Ground services. Here it is in a nutshell: The price you pay for shipping a package using UPS or FedEx Ground Services will be based on either dimensional weight or actual weight – whichever is greater. You may be scratching your head and saying to yourself, “Huh?!” Don’t fret. We’ll explain more.
In the past, shipping costs have been calculated using the gross weight of a package. So, if you shipped a relatively light item, but it took up a lot of space, it became a profitability issue for carriers. Dimensional weight is a calculation of the weight of a package based on formula that uses the length, width and height of your package.
Here’s an example to help illustrate dimensional weight vs. actual weight. Imagine you have a 16” x 16” x 16” box that you want to ship pillows in from here to California. The actual weight of the package could be anywhere from 5 to 10 lbs. Using the dimensional weight calculation, the same box of pillows would be estimated at approximately 27 lbs. of weight. Because the rate structure is determined by the greater of dimensional weight vs. actual weight, you would be charged for the dimensional weight.
How will this affect your small business shipping?
If your small business ships a lot of smaller packages by UPS or FedEx, you’ll have to make certain the items you are shipping are packaged efficiently and properly. Otherwise, you’ll be paying a lot more for shipping; upwards of 38% as some have estimated. Click here to read an NBC News report on how charging for shipping by dimensional weight could change e-commerce. (link to: http://www.nbcnews.com/business/consumer/fedex-plans-charge-size-could-shake-e-commerce-n99741)
Why It’s a Good Idea to Ship Items with Mail Box & Pack
The packing and shipping professionals at Mail Box & Pack stay up-to-date on the latest industry standards and will help you select the best solutions for your shipping needs. Shipping requirements can be somewhat confusing, unless you do it all the time like we do at Mail Box & Pack in Hendersonville, NC. With Mail Box & Pack:
- You don’t have to worry about choosing the correct boxes, bubble wrap and/or other packing material. We know how to determine the best box size and packing materials for your items so they can be shipped cost-efficiently and safely.
- You can eliminate from your schedule the time it takes to package everything properly. Hendersonville, NC’s Mail Box & Pack will make sure your items are packed to meet industry standards using carrier approved materials.
- You can easily compare the services and rates of the major carriers like FedEx®, UPS®, DHL and USPS and have us package and ship everything for you.
- We help you file and process and claims. Damage sometimes occurs to packages, regardless of how well they are packed. Because we work with the carriers, we can get you through the process of filing a claim much quicker and with less aggravation.
Limited Time Offer – Save 10% on All Packaging Services with Mail Box & Pack
For a limited time, you can save 10% when you have your items packed for shipping by Mail Box & Pack. Get your discount coupon now!