Understanding Dimensional Weight Pricing
Fast and reliable shipping can take a business to the next level. As the final stage of a transaction, your business reputation depends on shipping service.
That being said, shipping items to customers come with a heavy price tag. Recently, shipping carriers, including UPS and FedEx changed their dimensional weight rules for the next year. Dimensional weight pricing affects shipping rates.
It’s therefore important for companies to understand dimensional weight pricing in detail.
Dimensional weight 101
In simple terms, dimensional weight refers to the volume or density of a shipping package. It is the amount of space a shipping package occupies on transportation mode.
Keep in mind, dimensional weight is not the package’s actual weight. So, if you send a large amount of lightweight items, you will have to bear high shipping costs.
Whether you’re using a domestic or international shipping service, dimensional weight applies to both cases.
How is it calculated?
Dimensional weight is calculated by multiplying a package’s length, width and height. It entails calculating the cubic size of a package.
After you have worked out a package’s dimensional weight, you will compare it to its actual weight.
In some cases, the larger of the two (dimensional weight and actual weight) can be used to evaluate the billable weight of the package. Billable weight is used to calculate the shipping rate.
Furthermore, most shipping companies stick to the nearest whole number for calculating dimensional weight.
Tips to save money on shipping
In order to save money on shipping, you must:
- Assess the items that you ship, especially lightweight items.
- Reconsider your shipping contracts. Look for other shipping companies or negotiate better rates with the current ones. Also, keep an eye on discounts offered by shipping companies. Stick to the company that suits your budget.
- Invest in an automated shipping software.An integrated multi carrier shipping software will enhance operational efficiencies and reduce shipping costs.
For the best shipping software, book a consultation with Nexxio. With over 10 years of experience and expertise in developing multi carrier shipping systems, Nexxio has been simplifying and streamlining business transportation.
We provide multi carrier shipping software to small and large enterprises. Our shipping products include Nexxship, Nexxpack and Nexxaddress. Fully automated, effective and economical, these shipping systems ensure pain-free integration with standard ERPs, including Oracle.
Our goal is to deliver high quality shipping solutions to help businesses meet their strategic objectives. Explore our latest catalogue and select a software that suits your business requirements.
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