shipping

Balance scale comparing dimensional weight and actual weight

February 6, 2024

Understanding Dimensional Shipping Weight

In the world of e-commerce and order fulfillment, understanding how shipping costs are calculated is crucial for businesses aiming to manage expenses effectively. One concept that often causes confusion is dimensional weight (DIM weight), a pricing technique used by major carriers like FedEx, USPS, and UPS. This blog post will demystify dimensional weight, explain how it’s calculated, and offer tips for ShipJoy users to optimize their shipping strategy.

What is Dimensional Weight?

Dimensional weight, also known as volumetric weight, is a billing technique used by carriers to ensure that the space items take up in a truck or plane is reflected in the shipping costs. It considers the volume (the amount of space a package occupies) in relation to its actual weight. Carriers like FedEx, USPS, and UPS use dimensional weight to charge for the space parcels occupy, rather than just their physical weight, especially for lighter, bulkier packages.

Why Dimensional Weight Matters

Understanding and optimizing dimensional weight can lead to significant cost savings, especially for businesses that ship large, lightweight items. Carriers started using this method to prevent businesses from shipping large boxes with very light items without paying for the space the packages take up in delivery vehicles.

How is Dimensional Weight Calculated?

Each carrier has a specific formula to calculate dimensional weight, but the general process involves the following steps:

Measure the Package: Measure the length, width, and height of your package. Round each measurement to the nearest whole inch.
Calculate the Volume: Multiply the package’s length by width by height. The result is the cubic size of your package.
Apply the DIM Factor: Carriers set a dimensional weight divisor or factor, which can change based on shipping policies or the type of service you choose. Divide the cubic size of your package by the DIM factor to determine the dimensional weight.
Compare with Actual Weight: The carrier will charge based on the greater of the two weights: the dimensional weight or the actual weight.

Carrier-Specific DIM Factors and Policies:

FedEx: FedEx applies dimensional weight pricing to all packages. The DIM factor for domestic shipments typically is 139, meaning you divide the cubic size by 139 to find the dimensional weight in pounds.
USPS: USPS uses dimensional weight pricing for packages shipped via Priority Mail and Priority Mail Express for parcels larger than one cubic foot. The DIM divisor for USPS is 166 for retail pricing.
UPS: UPS applies dimensional weight pricing to all packages. The standard DIM divisor for domestic shipments is 139, similar to FedEx.

Tips for ShipJoy Users to Optimize Shipping Costs

Pack Smart: Use the smallest box possible to fit your product securely. Extra space not only increases dimensional weight but also the risk of damage during shipping.
Stay Updated: Carriers occasionally update DIM factors and policies. Regularly check the latest updates from FedEx, USPS, and UPS to avoid unexpected charges.
Consolidate Shipments: Whenever possible, consolidate multiple items into one package to reduce the total volume.
Use Carrier-Supplied Packaging: Some carriers offer packaging that may reduce dimensional weight costs or negate them entirely for certain service levels.
Negotiate Rates: If you ship in high volumes, you might be able to negotiate better rates or DIM factors with carriers.
Leverage ShipJoy’s Expertise: Utilize ShipJoy’s resources and years of expertise in logistics to optimize your packaging and shipping strategies, potentially saving significant costs in the long run.

Understanding and optimizing dimensional weight can seem daunting, but it’s a powerful way to control shipping costs and improve your bottom line. By staying informed about carrier policies and proactively managing your packaging and shipping strategies, you can turn the challenge of dimensional weight into an opportunity for cost savings and efficiency.

Remember, ShipJoy is here to help you navigate these complexities and ensure that your products reach your customers in the most efficient and cost-effective manner. Happy shipping!

February 3, 2020

eCommerce Trends in 2020 and Beyond

SJoyAdmin Blog ecommerce, shipping, trends

2019 was a year for growth and innovation in eCommerce trends. Major shifts occurred in demand and heightened customer expectations. New delivery and logistics management solutions are making fulfillment companies smarter, faster and more cost efficient for retail businesses. Based on what we know and what 2019 has shown us, there are some major eCommerce trends that fulfillment centers will be seeing in 2020.

Technology & Artificial Intelligence

Due to the nature of the industry there tends to be a lack of visibility and transparency in eCommerce trends. This has a negative effect on the supply chain from start to finish. Companies are now trying to reduce that risk through increasing access and utilizing information. Preferably in a way that helps to streamline inventory management. New inventory management software is making it easier to track and organize products stored in warehouses. To further speed up the process machines are taking on a bigger role in picking, packing, and shipping products.

What we predict in 2020 is a significant increase in digital workflows that companies are adopting to help reduce costs. Of course, rolling out new systems and training comes at big costs. But as business owners, it’s imperative to look at this as an investment that will pay off as operating costs are reduced year-by-year. While this all sounds like a no brainer it’s important to point out that infrastructure should be in place before making these investments for the best results. Keep an eye out for drawbacks to the customer that may affect their experience.

More Warehouses

As ecommerce trends shift away from brick and mortar retail locations to online shopping, so does the supply-chain process. With less inventory being processed through retail storefronts, you need to be able to accommodate for the influx of online orders. This includes having ample amounts of space to store the product before it ships. The larger companies will begin to purchase their own warehouses where smaller companies with less capital will still need to outsource to major warehouses.

Lower Costs

As the eCommerce industry booms so does the demand for shipping needs. To meet demand the shipping frequency has increased along with competition. Increased shipments and competition allow for fulfillment providers to broker an even better deal. This further lowers distribution costs for retailers which pass the shared savings onto the consumer.

While shipping costs appear to be lowering, there are new hurdles that companies are facing due to the political climate. New trade disputes are beginning to change operational costs as tariff policies are put into place. There is much unrest as we have yet to see how rising tariffs will increase prices and ecommerce trends. This of course will have an impact on consumer demand making it difficult for smaller businesses to compete in market space.

Expert Fulfillment Services

We are eCommerce shipping experts that make growing your business enjoyable. With ShipJoy’s eCommerce fulfillment support you’ll have the guidance and technology you need to delight customers, maximize growth, and scale your business joyfully. Our specialists work tirelessly to ensure we provide the best e-commerce fulfillment, warehousing, and shipping solutions for your business. Contact us today to stay ahead of the competition!

February 3, 2020

Don’t Get Gypped When You Ship

SJoyAdmin Blog costs, ecommerce, shipping

Controlling eCommerce Shipping Costs

Cost with eCommerce returns can offset a profit in lightning speed. Damage control for shipping is becoming more important today as most products are being bought online. If you’re not looking to throw away more money, then look at these tips to help control your eCommerce shipping costs.

Tip 1: It’s All in the Handlers

Select a company who is reliable and respectful of your goods. Be sure to find reputable people to manage your items who offer shipping insurance. Tracking the packages during transit and pre-delivery is also a big responsibility where most trustworthy companies will take recourse on missing items. Beyond all, the handlers are professional packers who understand the importance and take pride in their jobs ultimately delivering quality of results.

Tip 2: Shrinkage Starts and Stops with Packaging

Several issues arise from the warehouse to delivery destination. From flooding to dropping the package anything is possible where using appropriate dunnage and packaging is key for protection.

The pros ensure safe packing with plenty of wrapping or cushion without overusing .

Tip 3: Damage Control Uses the Rule, Less is More

Many times, the cost of doing business happens before the item ever leaves the warehouse. Overused packaging materials can be very expensive. In addition, sturdy boxes that can resist impact and act as a shock absorber are crucial to ensure your products reach the final destination in one piece without excessive eCommerce shipping costs.

Tip 4: Use the Right Packaging Materials for the Job

Your shipping company can make suggestions for using the right materials for the job. Things like solid plastics, bubble wrap and air pillows may be more suitable depending on the items you are delivering. But, if you need to cut back costs and still want to avoid damage, items like kraft paper and wood chips might be a good alternative.

Tip 5: Thieves, Rodents and Other Damaging Elements

Since the world of eCommerce is exploding, there are more factors to determine during the pre-shipping stage. For instance, rodents can be a nuisance when shipping things like food. Also, porch thieves are more prevalent and not just during the holidays. Not to mention, if they leave your package in the rain, water can significantly damage the contents inside the box. The company you select to move your items to their recipients will ensure they address these potential hazards prior to items leaving the warehouse. While the cost may be more for the delivery, it should offset the eCommerce shipping cost of returning damaged items.

Tip 6: Use a Tracking System and Keep a Log of Packages

You could lose future business if you’re not keeping track of your eCommerce shipping costs. Determine who, what, where and how the packages became damaged and use a tracking system where you’re keeping a log of the occurrences. Sometimes, you may need to get more involved with the shippers or stop using them altogether.

These are just a few ways to prevent damage and keep your customers happy. It’s not realistic to think you’ll have a 100% batting average with shipping your eCommerce items. However, by following these quick tips, you will be on the fulfillment cutting edge without losing as much in the long run.

Improve your operations with ShipJoy to help control your eCommerce shipping costs. Our experts have decades of experience and are ready to serve your brand at the highest levels.

December 10, 2019

Creating Your Shipping Policy

SJoyAdmin Blog ecommerce, policy, shipping 0 Comments

Ensuring that your company has an eCommerce Shopping Policy document is a fundamental practice. It works well alongside your shipping strategy, to create efficiency and increase profitability.

The shipping policy is a compact document which highlights the relevant information around your shipping after an order is placed. It will most likely include crucial information such as the shipping costs, methods, delivery times and anything else relating to the sale.

It may be a little more comprehensive but the same information remains. You can inform you customers of the time of delivery, when they will expect their order and the shipping method, how it’s likely to arrive, which shows capability and a conscientious attitude towards your customers.

It should also include the relevant shipping costs, as this can lead to customer confusion or anger if this is not stated previously. It may include any international shipping expectations which include issues with the product, should it be broken or damaged, how it can be returned and how you can assist them with this. All of which protects your business in the long run.

This will include any restrictions to the product also, to ensure the customer is well verse with all your regulations, in case you are restricted in terms of location.

Keeping your shipping policy updated is key, depending upon your company and its regulations and how it may change over time. Often, every six months is a good time to look at renewing and updating your policy and checking all the elements still work effectively.