“Dimensional Weight Pricing Is Here and Businesses are Seeing Red” on Multichannel Merchant
By Amine Khechfe
Many business owners were in for a shock when they received their January invoices from FedEx and UPS. That’s because they were finally able to see the impact of dimensional weight pricing firsthand.
In case you’re just now hearing about these changes, dimensional weight pricing is a method of calculating shipping costs based on the volume of a package — or the amount of space it occupies — in relation to its weight. FedEx and UPS began applying this pricing method to all Ground shipments in 2015. The result is a substantial price hike for larger, lightweight packages that can have a big impact on your business’ bottom line.
Lately, I talked about dimensional weight pricing and offered some potential solutions for businesses. Today, I’d like to take a closer look at why FedEx and UPS are using this type of pricing for domestic ground shipments and provide some fresh insights from business owners on how they’ll be affected.
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