In these cases, large and low-cost goods might not yield enough profit to cover your losses. So you’ll likely have to find ways to offer free shipping on your products-which may mean absorbing some of the shipping costs on large products. In today’s competitive ecommerce environment, charging customers the actual cost of shipping usually leads to abandoned carts and lost sales. With dimensional pricing in mind, here are six ways to minimize your shipping spend, increase your bottom line, and get orders out to customers faster: Consider Product Size Not sure which carrier to use? Read our guide to FedEx vs UPS vs USPS for small businesses. For instance: Dimensional Weight of Parcels in Different Boxes Because of DIM pricing, you can dramatically overpay when shipping if you aren’t careful about your packaging choices. If your business ships regularly, understanding how dimensional weight affects your bottom line is crucial to your success. Larger parcels allow for fewer units to fit in a single truckload, so they are more expensive to ship than small, heavy parcels. DIM pricing benefits carriers because it accounts for the amount of space each parcel occupies on the truck, boat, or aircraft. When this value is factored into pricing, it’s commonly called DIM pricing.
Dimensional Weight Formulasĭimensional weight is calculated by multiplying the package’s length, width, and height and then dividing the product by the DIM divisor-which is 139 (for FedEx and UPS) or 166 (for USPS). Read on to learn more about how DIM weight is calculated, how it affects pricing, and when shipping companies use it. This greater value is called the billable weight. In most cases, carriers will consider the two weights and calculate rates based on whichever is greater. Dimensional weight represents the amount of space your parcel occupies in relation to its actual weight.
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