Shipping costs are universally hated, and in 2017 we’re sorry to say, it’s not looking to get much better. Costs are soaring to new heights with rate increases and dimensional weight (DIM Weight) factor changes within both FedEx and UPS. Shipping your products in the right-sized packages is now at the peak of importance to ensure that consumers are receiving the lowest possible shipping costs.
Rates with FedEx and UPS went through a drastic change in January 2017. Both companies carried out 4.9% average rate increases for all domestic ground packages. The DIM Weight factor was changed to 139 for all packages with FedEx and for packages greater than 1,728 cubic inches with UPS.
To put this in perspective, the old DIM Weight factor of 166 meant that an empty 14” x 12” x 12” box would be charged a shipping factor based on 13 pounds. This would cost $31.90 to ship from New York to Los Angeles. In 2017, this same size box, going the same distance, would be based on a factor of 15 pounds and cost $37.87 to ship (a 16% increase). Freight is already one of the largest costs in fulfillment, so this kind of increase can really add up quickly.
How Can Consumers Gain a Competitive Edge?
There are a few questions that customers can answer to potentially save some cash in the shipping department.
- How much void fill are you using?
- Is it protecting your items or just filling excess space?
- Can the overall size of the package be reduced while maintaining the protection your product needs?
- Is the shipping package appropriate for the items being shipped? (See: Automated Mailer & Carton Elimination Systems)
Opportunities for Improvement
We can evaluate your current packaging operation and make recommendations that will:
- Simplify your packaging process
- Increase throughput
- Reduce the amount of packaging materials taking up your valuable warehouse space
- Reduce freight costs
How much additional freight are you being charged for?
Fortunately, you don’t have to do the math by hand or in your head. We’ve come up with an easy-to-use DIM Weight Calculator to show you just how many more pounds you’re being charged to ship your package because of dimensional weight factors.
Go to: DIM Weight Calculator