If your business involves the shipment of delicate items, such as electronics, art work, glass pieces, or fragile antiques, then the new shipping price changes that went into effect this year may result in higher shipping costs. But with a little know how, there are several things that you can do to help keep these costs to a minimum.
Beginning this year, both UPS and FedEx, the two biggest shipping carriers in the US, officially changed the way they charge customers for lightweight shipments in large boxes. The change involves utilizing dimensional weight to calculate the billable weight of a shipment among ground and freight delivery services in order to promote packaging efficiency.
Why does this matter? The reality is that parcel carriers are increasingly challenged to maximize the space in their cargo planes and delivery vehicles. By focusing on the dimensional weight of the package, they hope to retain profitability, while encouraging shippers to evaluate the way their shipments are packaged and protected.
So what can you do to ensure that you are paying the least amount possible on shipping, yet still adequately protecting your shipped items? Here are some key points to consider:
First, make sure you understand the details of these shipping price changes. The change in dimensional weight pricing targets the biggest culprit of capacity inefficiency: lightweight shipments in comparatively large boxes. Parcel carriers have always applied a dimensional weight calculation to all air shipments and to ground shipments with a cubic capacity over 5,184 inches (3 cubic feet), so the change isn’t a revolutionary one. The dimensional weight formula for domestic Air and Ground shipments is: L x W x H / 166. In order to find out if your shipping costs will go up this year, you need to consider your most frequently used boxes and apply this formula. If the dimensional weight of that box exceeds the actual weight of the box plus packaging material and the weight of the product, then you will be paying more to ship that product.
Re-Evaluate your boxes and packing material. Are your boxes the right size for your product? What kind of packaging material are you using to protect your product, and how much of this material is being used? Ideally, your shipping box should have enough room for additional padding, but not be too big. Parcel carriers suggest that there be about 3 inches of space on each side between the wrapped, padded item and the walls of the box. Knowing how to properly pad the item is also important. FedEx has posted several packing tips with video that demonstrate the proper way to pad delicate items. You can see them here.
Take the time to research shipping options. Once you know the dimensional weight of your item, you can then go online and research various shipping arrangements to see which of the major carriers, FedEx, UPS, and the USPS, has the cheapest option. To get an idea of how much prices can vary depending on your shipping needs, take a look at this post over at My Wife Quit Her Job. Your best bet would be to use the shipping cost calculator provided on each carrier’s site or a shipping cost comparison tool.
Bottom line, if you put in the effort to accommodate these shipping changes, you may ultimately enjoy considerable savings instead of a price increase since you can save money by using the right shipping materials. Just be sure to do your research.