FedEx and UPS have been charging Dimensional Weight for years, but only on packages 3 cubic feet or greater. How do you calculate cubic feet? Here is the formula: Length x Width x Height divided by 1728 = cubic feet. But that formula really isn't worth remembering anymore. Because starting January 2015, it doesn't matter how many cubic feet your package is, as ALL packages will be subject to Dimensional Weight, no matter the size or "cubic feet" of a package.
Many Customers, Small Businesses, and entire Industries will feel the pain of this new pricing increase. Those that will be hit hardest are those that purchase or ship light weight, but bulky packages. Some examples might be; Diapers, Toilet Paper, Paper Towels, Lamp Shades, Light Bulbs, Stuffed Toys, Pillows, and Floral Arrangements just to name a few.
Important Dates:
*UPS announced that the change will take place on December 31st, 2014 on all Ground Packages and our UPS representative further advised us that it will also be applied to UPS's Surepost packages.
*FedEx Ground announced that the change will take place on January 5th, 2014, on all Ground Packages. It appears to us and our many contacts that Smartpost will be exempt from this new rule, at least for now. This is a very interesting move by FedEx and might give a lot of shippers another option to avoid the new dim rule .
With the Dimensional pricing changes starting the beginning of 2015, every single UPS and FedEx Ground package will be subject to "dimensional weight". What does that mean? Here are a few examples:
-A Box that measures 12"x12"x12" and contains a stuffed teddy bear and weighs 2 lbs. You will no longer pay the 2 lb price, but you will pay the higher dimensional weight of 10.41 lbs
-How about a case of toilet paper, or paper towels measuring 18"x18"x12", say the paper goods weigh 6 lbs, you will not be charged based on the 6 lbs, but the dimensional weight of 23 lbs
-How about a package that measures 20"x20"x12", and has a king size pillow in it that weighs 2 lbs. What do you think will be the weight you will be billed for? Not 2 lbs! Try 29 lbs.
You may be asking "How do I calculate Dimensional Weight? We have the formula below.
L x W x H = divided by 166 = Dimensional Weight. (Free Dimensional Weight Calculator http://www.fastpack.net/shipping-tools/ )
Let's run through the pillow example above. 20 x 20 x 12 = 4800 / 166 = 28.916, which rounds up to 29 lbs.
Keep in mind, dimensional weight will really only affect you if your product is light and bulky. There are two terms you should keep in mind, Actual Weight, and Dimensional weight.:
- Actual Weight is true or the Actual weight of the package.
- Dimensional Weight is based on the size of the package.
*FedEx and UPS will bill you the higher of the two. For Example:
If you are shipping a box of bricks that measures 20"x20"x12", and it weighs 70 lbs, you will be charged based on the Actual Weight of 70 lbs, not the lighter 29 lb Dimensional Weight. But if that same box is full of feathers and weighs 1 lb, you will be charged at the higher dimensional weight of 29 lbs.
How will small business and entire industries cope with this change? We have a few ideas.:
-Negotiate with your UPS AND FedEx Representatives, ASAP!
-Move some packages to USPS. The USPS actually lowered Priority Mail shipping on many weight groups just this past October (2014)
-USPS First Class Mail and Parcel Select
-FedEx Smartpost, according to our sources, will be exempt from the new dimensional weight. ALTHOUGH there are size Restrictions, and the existing dimensional rules still apply.
-Regional Couriers
-Zone Skipping, this option would benefit larger shippers, shipping many packages
-Use the proper size cardboard boxes. No longer can you use the "one size fits all" theory. That extra inch or more, is not only going to cost you to fill the void with Kraft Paper, Bubble Wrap® or Packing Peanuts, but it will add to your UPS/FedEx shipping costs. Cut down that wasted space with our Carton Resizer Tool. Don't need a full bundle of different size boxes? That is why Build-A-Bundle™ was born! Need only a couple of a certain size box, and not an entire Bundle? Then you need Build-A-Bundle™
-Switch to Bubble Mailers or Cardboard Envelopes / Mailers
*We would love to hear your ideas on how you plan to deal with this change. Also, if you have questions, we are MORE than happy to help anyway that we can. Please leave us a comment, or question below.
Want more information on the changes?:
http://news.van.fedex.com/fedex-announces-pricing-...
http://www.pressroom.ups.com/Press+Releases/Archiv...