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“New Survey Reveals: Businesses Will Switch To USPS Due to FedEx and UPS Price Increases [Infographic]” on Business 2 Community

02/12/2015

By Harry Whitehouse

With FedEx and UPS’s dimensional weight pricing now in effect for all Ground shipments, many businesses are faced with having to reconsider their shipping carrier and method of packaging.

To refresh your memory, dimensional weight pricing bases shipping costs on the volume of a package in relation to its weight. It’s calculated by multiplying the length, width and height of a package, and then dividing the result by a dimensional factor (UPS and FedEx use 166 for domestic shipments). This number is compared to the actual weight of the package, and the higher of the two is used to determine the base rate of the shipment.

As a result, shipping large, lightweight products, like a backpack or purse, may cost significantly more than it did in 2014.

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