“Why Shipping Fees Could Sting Small Businesses in 2015” in American Express OPEN Forum
By Kelly Spors
Two shipping companies are changing their pricing models, which will make small-business owners think twice before using larger-than-necessary packaging.
Ship out a lot of packages for your business? You might get sticker shock in the new year.
United Parcel Service (UPS) and FedEx have both introduced a new pricing model for 2015 meant to deter online retailers from using needlessly large boxes. The companies will now base their shipping fees for boxes under three cubic feet by “dimensional weight”—factoring in the box's physical size—rather than solely on its weight. UPS and FedEx already use dimensional weight for packages three cubic feet or larger.
The new pricing system could mean big spikes in shipping costs for small-business owners who aren't careful, experts told Reuters.