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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Announcing New SKUs for Your Diverse Shipping Needs

SKUs

SKUs to fit your Shipping Needs

Today we’re announcing some exciting upgrades to the ShipHawk product line.  We originally launched these offerings for two reasons: 1) to give enterprise customers an easy way to try our products out before purchasing and 2) to give small-to-midsized companies with lower complexity a way to access the magic of ShipHawk.  With today’s changes, that access now includes support for a wider range of services—parcel, large goods (LTL), home delivery as well as blanket wrap—in all SKUs, even our free starter product. We’ve also packaged a custom SKU for those of you looking to manage your current parcel and freight tariffs in a single place.

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The Most Wonderful Time of Year for Retailers and Parcel Carriers

The Most Wonderful Time of Year for Retailers and Parcel Carriers

Whether it’s “Black Friday”, “Small Business Saturday, “Cyber Monday”, or simply holiday shopping—customers are out in droves making purchases during the months of November and December. In fact, according to the National Retail Federation, the average person is expected to spend $805 this holiday season. Early reports are showing that online retailers are the largest beneficiaries of the holiday shopping season, edging out traditional brick-and-mortar stores. “Consumers spent an estimated $4.45 billion online Thursday and Friday, with Black Friday sales rising 14% from a year ago, according to Adobe Systems Inc., which tracks purchases across 4,500 U.S. sites.” Furthermore, Visa, says that eCommerce spending by U.S. cardholders increased by 22% to $1.5 billion over the Thanksgiving holiday.

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