October 2, 2014
What will be the cost of the dimensional price increase?
Are you wrapping your products with potential profits?
I know a lot of people dislike it when the title of an article is a click-baity question, so I’ll give you the quick and dirty answer right now, in less than 150 words:
Whether or not the dimensional weight price increase effects you depends on how empty your boxes are, and the weight the items you ship.
- If you’re consistently shipping boxes that weigh over 10 lbs. per cubic foot (4.5 kg. per 0.3 meters), then it’s probably not going to affect you very much.
- If you’re shipping products that are larger than 3 cubic feet, you’re already paying for dimensional weight, and you won’t be seeing any changes when 2015 comes around.
- But if you’re not in either of those two categories, there’s a good chance you’re like the average e-commerce retailer, and that about 40% of the space inside your packages is empty space.
That means you’re likely going to be among those paying an estimated additional $500 to $1 billion in shipping next year.
Now let’s talk about the long answer
The best way to understand dimensional weight pricing is to consider it a “minimum weight payment” on all your packages. Remember this chart we posted a couple of months ago?
The dimensional weight column will be the minimum weight you’ll be charged next year when the prices take affect. So if you’re currently shipping a 2 lb. camera in a 12″ x 12″ x 12″ box, you can expect to pay over five times as much in shipping charges next year.
It’s no wonder some experts say this will be the most significant price increase in decades.
How can you reduce the charges?
Unless you have some pretty good bargaining power with your carriers, there’s not much you can do about that minimum weight charge. A 12″ x 12″ x 12″ box will be charged as if it weighs 11 lbs., no matter what.
The only easy way you can get lower shipping charges is if you start using smaller boxes.
So instead of sending that pocket camera in a 12″ x 12″ x 12″ box and paying the same price as someone shipping a medium-sized bowling ball, why not send it in a 6″ x 6″ x 4″ box and pay the same price you’ve always paid for shipping?
With On Demand Packaging®, you can be sure you’ll ship the smallest possible box every time—minimizing the impact that the dimensional pricing increase will have on your company.
In addition to that, our box making machines save our customers on average 20% of their corrugated costs.
If that sounds like something you’d be interested in, you can download our white paper—”The Smallest Possible Box”—by clicking the button below: