Calculating shipping cost
It is important for e-Commerce companies to understand dimensional weight (DIM) otherwise their order fulfillment costs can skyrocket and eat into profits. In 2015, due to the diversity of package sizes – in particular ‘lightweight, bulky packages’, fulfillment company Amazon and carriers like UPS, Fed Ex, Purolator and USPS, aimed to control their operational costs by establishing new shipping standards. They began charging for both actual weight and dimensional weight to capture the cost of the occupied space in their shipping containers. (DIM shipping calculator)
Surface area is key
Accurately estimating DIM is imperative to pricing products profitably. Amazon, for example, employs “precision tech scanners and measurement tools to determine length (the longest side of the package), width (the median side), height (the shortest side), and weight.” They advise shippers to be savvy and careful during packaging because anything sticking out such as ‘unstuck packing tape’ will increase the package’s measured area and subsequently up their shipping price (Source).
Consistent, compact and with care
Companies can potentially realize sizable savings by reducing each unit’s cubic size. Since odd package dimensions & lengths will likely lead to significant additional shipping charges, choosing which package size and what dimensions are most affordable are critical to the bottom line. As retailers, ‘e-tailers’ and exporters get restocked and prepare for their 2020 holiday season sales, we recommend they work with their manufacturing and logistics partners to re-evaluate their packaging.