Reduce DIM Weights to Effectively Reduce Shipping Costs.
There is a reason why your shipping costs are often higher than expected. You might not be aware that one major factor is the dimensional weight of the package. In fact, you could end up paying more dimension weight charges if the cartons are greater than one cubic foot. Here’s how you can reduce shipping costs even if you use a third-party fulfillment provider.
DIM Weights
Shipping carries use the dimensional weight to calculate the billing weight of a shipment. They do not consider the actual weight. That means they charge for the space the parcel takes in their trucks and planes, irrespective of its actual weight.
It’s easy to calculate too. To do so, multiply the length x width x height of your package in inches and divide it by 139 for FedEx, UPS, and DHL ground shipments.
Related: Order Fulfillment and 3PL Pricing Models Explained.
Reducing DIM Weights
It is important to focus on reducing DIM weights to reduce total cost. This is an effective way to lower the shipping cost, offer better competitive prices to shoppers, and reduce your carbon footprint. Additionally, you can reduce DIM weights in the following ways while still maintaining the shipment quality.
Choose the correct box sizes
It might help to maintain a range of stock cartons so you always have the smallest package available for any parcel.
Minimize package dimensions
Now you want to think of ways to reduce the dimensions of the package. So think of ways to arrange the items in the parcel. There are a few ways you can do so. You could try out stacking, flattening, folding, and vacuum sealing to reduce the carton size.
Combine multiple orders
It’s a great idea to consolidate shipments if possible. The goal is to reduce the DIM weight of the parcel so you can save money on shipping.
Select a carrier with a large DIM weight divisor
It is in your best interest to use a shipping carrier with a larger DIM divisor. Your goal is to lower the impact of package dimensions on the cost of shipment. In addition to this, request a higher DIM divisor from your fulfillment partner along with discounted shipping cost. Remember, the divisor number will determine the DIM weight. If it is high, the DIM weight will be low.
Related: How Can a 3PL Cut Operational Costs for eCommerce Businesses?
Questions & Answers About DIM Weight
What is DIM weight?
Also known as dimensional weight, DIM weight calculates the billable weight of a parcel.
Why is it important to reduce DIM weight?
The goal is to save more on shipping costs. By doing so, you can offer better competitive prices to customers. Additionally, here’s an opportunity to reduce your carbon footprint.
How to reduce DIM weights?
By optimizing parcel contents, choosing correct box sizes, it is possible to reduce DIM weight. Additionally, another way is to combine shipments. Besides, another way is to choose a carrier with a higher DIM divisor.
Do lower DIM weights have an impact on customer satisfaction?
Reducing DIM weights is one of the best ways to offer competitive prices to customers. By lowering shipping costs, you can improve customer satisfaction.
How can I keep DIM weights low?
If you fulfill orders in-house, it would help to stock a range of carton sizes. The goal is to get your hands on the smallest size carton for any parcel every time. So stocking different sizes helps. Additionally, it is a good practice to train staff to focus on reducing wasted carton volume. On the other hand, it is in your best interest to ask your fulfillment partner to assign a higher DIM divisor if you choose to outsource.
An external fulfillment service partner like Elite OPS is responsible for picking, packing, and shipping orders. Consider such a strategy to reduce shipping and operational costs.
Elite OPS has been a leader in Shipping and Logistics for over 25 years. Contact Us to find out how we can help you Save Time and Money on Procurement as a Service, eCommerce Order Fulfillment, and Kitting and Assembly.
