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Effects of the DIM (Dimensional Weight Pricing)

Dimensional Weight PricingShipping costs are rising for ground packages. Shipping giants United Parcel Services, Inc. (UPS) and FedEx Corporation (FedEx) switched to dimensional (DIM) weight pricing at the start of the year. This means a substantial price hike for larger, packages containing lightweight items. Some claim the average hike was 17%. This adds up to shipping costs that drag down profits for everyone but the shipper.

Shipping consultants continue to advise ecommerce businesses to explore new approaches to hold down their shipping costs, including:

  • Pricing services from additional shipping companies, including regional shippers, to identify the least expensive delivery option
  • Identifying the most cost-effective packaging materials, like envelops or sleeves, not only for their costs but for their effect on DIM weight pricing

Dimensional Weight Pricing

  • Reflecting actual costs in shipping and handling cost calculations on your website
  • Auditing performance by shippers to ensure that discounts and refunds for delayed shipments are accounted for on invoices
  • Excluding large and heavy items for free shipping offers
  • Adopting software that assess merchandise dimensions to determine whether DIM weight rates apply and marking affected boxes with bar codes that alert warehouse staff to applicable DIM weight pricing
  • Hiring consultants to negotiate deals with national and regional shippers