Earlier this year, UPS and FedEx adjusted the way they charge for packages and now employ dimensional weight pricing. Any ground package that weighs less than 3 pounds is now charged by the higher amount between the package’s actual weight and its dimensional weight, which is calculated as length x width x height / 166 (for domestic shipments).
Practical eCommerce, a website that provides insight to online merchants, recently released a primer on how small businesses should manage dimensional weight pricing. Their 6 tips include using a third party consultant, such as Intelligent Audit, to complete a parcel analysis and help negotiate rates with carriers. According to the article:
If your clients are regional or your product is shipped out of multiple warehouses, regional carriers are worth considering. Generally, service levels for regional carriers are slightly poorer than for UPS and FedEx. But the differences are narrowing as regional carriers are getting better. Depending on volume, consider using a third-party fulfillment provider with multiple warehouses and lower shipping rates. If you’re going to keep fulfillment in house, using a consultant that can complete a parcel analysis and help negotiate rates with the carriers can be worthwhile.
At Intelligent Audit, our small parcel audit is guaranteed to save you more than our competition can. Don’t believe it? You won’t pay us a dollar until you start saving. Contact us for a risk-free test-run of our small parcel auditing and recovery software.