Welcome to 2015, and another Shipping change, and it's a big one! This one is going to leave a mark. If you found this blog post, you probably are trying to find ways to cope with the new dimensional weight rates imposed by UPS and Fedex on all Domestic Ground packages starting in 2015. We ship Nationwide and initial numbers are showing zones 7 and 8 getting hit the hardest. We have seen some packages increase as much as 66% in the cost to ship! We are doing everything in our power not to pass the cost on to our customers, and that includes finding alternative ways to ship the products that are being hardest hit.
Here are some of our best ideas on dealing with this new pricing structure / increase. There is not an easy solution to this problem. We have not been able to find the perfect answer, but the below options may help soften the blow, slightly, until a better solution is found.
1.) Diversify your shipping solution. You can no longer ship all of your packages by one Carrier! Evaluate other shipping services such as;
*USPS:
-First Class Mail for any package under 13 ounces - Great Price, Delivery usually 2-5 Days
-Media Mail, for Media Only. Books etc. - Great Price, Delivery usually 1-3 weeks
-Priority Mail - Delivery usually 2-3 Days
-Priority Flat Rate & Regional Boxes - Delivery usually 2-3 Days
-Parcel Select - Delivery Usually 2-10 Days
*FedEx:
-Ground - Delivery Usually 1-5 Business Days (Dim Weight on all packages)
-Home Delivery - Delivery Usually in 1-5 Business Days
-Smartpost - Delivery varies, we have found it takes, 1 maybe 2 more days than Ground
*UPS:
-Ground - Delivery Usually 1-5 Business Days (Dim Weight on all packages)
-Surepost - Delivery should only take 1-2 days longer than Ground (Dim Weight on all packages)
*Regional Couriers - Usually have better rates, and can deliver faster than your typical ground shipping. One drawback is they only service small areas and not national.
2.) Throw "One Size Fits All", Out the Window! You now need to have the proper size Corrugated Cardboard Shipping Boxes for each product you sell. You can buy them in bundles of usually around 25 per bundle, or we have created a new program "Build-A-Bundle™" that allows you to purchase as few or as many as needed. A box that is just 1" too large is going to cost you more to ship now. If you do not have the space or funds stock multiple box sizes, at least resize your existing box by cutting down the excess height. A Box Re-Sizer Tool makes it clean and easy to do!
3.) Don't Skimp on Protective Packaging. Cutting back on Bubble Wrap®, Foam or Packing Peanuts may allow you to ship your breakable product in a smaller box, thus potentially saving you on the cost of shipping, but this could be counter productive if the product is broken in transit. A damaged product costs you money and potentially a customer.
4.)Negotiate and Re-Negotiate your contracts with FedEx and UPS.
5.) Zone Skipping - This would only work for larger companies, shipping large numbers of packages a day. This works by shipping multiple packages on a pallet(s) by freight line, closer to your customer, then shipping from there by Ground for delivery to the final destination. This is called Zone Skipping or Zone Hopping.
6.)Stop using Boxes - This will not be an option for everyone, but does your product really need to be in a box? Could it ship in a Bubble Mailer, or how about a Poly Courier Mailer? This may save on actual package weight and dimensional weight, lowering your shipping cost.Bubble Mailers and Poly Courier Mailers also cost less than a comparable size box!
If you need a refresher as to what Dimensional weight is and how it works, see our blog post about it: All Ground Packages Subject to Dimensional Weight in 2015
This is the best list that we could come up with. Do you have an idea on how to cope with the increase or lessen the blow? Please comment below!