So, when is it cheaper for merchants to use flat-rate shipping – and when is it not? While it can save you money, flat-rate shipping methods can also be too standardized to cater to the unique needs of every merchant. But this doesn’t mean that flat-rate shipping is a one-size-fits-all solution for every e-commerce business. This is why it’s essential to have an optimized shipping strategy that provides the right cost savings in the right places.įlat-rate shipping is a popular shipping method for merchants who are looking to simplify their shipping strategy and their fulfillment process. The higher your shipping costs are, the slimmer your profit margins will be. Shipping is one of the biggest fulfillment costs that you’re going to shoulder as an e-commerce business. Written by Beth Owens on November 3rd, 2021 But if your package weighs more than 20.33 pounds, the dimensional weight would be disregarded and you'd just be charged the actual weight.E-commerce Omnichannel Retail Technology Transportation If your package's actual weight was less than 20.33 pounds, you would get charged the 21-pound UPS Ground rate instead. So for example, if your package measures 15" x 15" x 15", you would multiply the three dimensions to get 3375, and then divide that by 166 to get 20.33, which is the dimensional weight. You can calculate dimensional weight by multiplying your package's length, width, and height and then dividing by the "volumetric divisor", which is 166 for UPS. If your package's dimensional weight is "heavier" than the actual weight, you'll be charged as if your package were that heavier weight. It's based on the dimensions, which is why this is known as the "dimensional weight" or "DIM weight". If your package is larger than 1 cubic foot (for example, if the dimensions are over 12" x 12" x 12") then UPS uses a formula to calculate the minimum rate they'll charge. For large but lightweight packages, watch out for UPS Ground dimensional weight pricingĭimensional weight is common for every carrier-basically, they don't want to fill up their trucks with packages that are large but mostly empty.
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