Why Dimensional Pricing Software Matters

dimensional pricing

Why Dimensional Pricing Software Matters

Ever since 2015, the process of weighing your best shipping options for ground delivery no longer included taking into account a package’s actual weight. Why do businesses no longer factor in actual item weight when shipping anymore? This change occurred two years ago when major carriers, such as UPS Ground and FedEx Ground, stated that packages were no longer charged based on item weight but rather off of dimensional weight. Dimensional weight is defined as the amount of space a package takes up, not the actual weight of the item. You can calculate your package’s dimensional weight by multiplying the length x width x height and dividing it by your carrier’s specific dimensional divisor. Always make sure to round up to the next whole number as well.

Ex. Dim weight (1,728 cubic inches)/166 (UPS Dimensional Divisor) = 10.40 → 10lbs . Based off of dimensional pricing, you would then pay to ship a 10lb package.

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Seems like a pretty simple formula. Package your item in the smallest possible space to avoid spending the maximum amount of money. However, even though your item’s metrics will never change, that doesn’t mean that carriers can’t change their dimensional divisor sizes. In fact, as of January 2017, FedEx decreased the size of their dimensional divisor, thus increasing overall shipping prices. As a result, no matter how you package your items, because of the lower dimensional divisor size, packages will begin to be weighted as “heavier”, and therefore be more expensive to ship. With leading shipping companies increasing shipping prices, it is only a matter of time before additional companies follow their suit.

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Dimensional Weight Pricing

Dimensional Weight Pricing

In January 2015, FedEx and UPS announced that they were shifting to a dimensional weight pricing structure for every box size. This pricing method allows carriers to account for the amount of space being used on their trucks, especially by bulky and oversized packages. Furthermore, carriers believe that dimensional (DIM) weight pricing will force retailers and customers to reduce the size of their packaging, since many e-commerce retailers are shipping lighter items in oversized packaging.

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