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Given the increased cost, it may make sense to consider utilizing another fulfillment center for larger items or even considering freight delivery. All of these options are easier to calculate if you have good data on our shipping profile, which is not always that easy. A free Franklin Parcel Account will give you everything you need to get started.
Why is this a concern for your business? Well, in combination with recent UPS and FedEx increases, DIM weight pricing can have a substantial impact on your shipping costs. Let’s say you have a package that is 24″ × 15″ × 10″ and weighs 10 pounds. The UPS standard ground base rate to ship that box to Zone 5 is $12.42.
This is the username and password you use to log into the FedEx Billing Online to view and pay your shipping invoices. If you have any questions, concerns or just need general assistance with this, don’t hesitate to give us a quick call at (888)271-6785!
In 2018, FedEx will begin using a dimensional weight factor of 139 matching the DIM factor already in use for UPS except there is one nuance. The UPS DIM factor for packages under a cubic foot is still 166. That gives UPS a slight advantage on smaller light weight packages over FedEx. Once you get above a cubic feet, UPS uses a DIM Factor of 139 as well.
Dimensional weight pricing (DIM) is a new technique employed by the shipping companies to make more money from your shipments. Since lightweight packages take up the same amount of space as heavy ones in the shipping vessel, the carriers realized that they were potentially losing money by shipping large, light-weight packages. Therefore, they could increase their profits by estimating the weight of a package based on its dimensions (length, width, and height) rather than its actual weight. The result: DIM weight pricing.
This question is to determine if your shipping account is directly with UPS and/or FedEx or a third party such as Pirateship, Shopify, Shippo etc…
If you need help, both UPS and FedEx have Dimensional Weight calculators you can find here. Visit the UPS and FedEx sites to learn how to calculate this number (FedEx has a calculator that does the work for you).
Understanding and Mitigating Shipping Costs Rising shipping costs plague businesses, particularly those with direct-to-consumer models.…
Next, reevaluate your shipments, especially if you ship large, lightweight items. Is it possible to decrease the size of your shipping boxes? Calculate the cost of shipping in multiple boxes or sending your item in a non-assembled form. Decreasing box size by even an inch or two can help lower your total cost. However, for many shippers, this may not be a viable solution.
Shipping and logistics are ever-evolving activities; therefore, companies need to constantly analyze the options available…
More worrisome still is the fact that this represents an 18.85% increase over 2016 prices, which means that the carriers can (and likely will) increase rates again in the future.
So what can you do to guard against these inflated costs? For starters, make sure you know the DIM weight of the packages you’re sending. Visit the UPS and FedEx sites to learn how to calculate this number (FedEx has a calculator that does the work for you).