In their April cover story “Diversifying Delivery” Internet Retailer reported, “How much shipping fees are up varies by product and a retailer’s volume. But some say prices are up as much as 30%. That includes an average 4.9% annual rate hike, various residential and fuel cost surcharges, and the move to charging by a package’s physical dimensions…”
In their June 2015 Executive Summary: Dim Weight Pricing, Multichannel Merchant puts the increase lower. They report, “Industry experts estimate that retail shippers are seeing an average increase of 17% in their 2015 ground shipping costs from the major carriers on parcels affected by DIM.”
Obviously your financial results are the ones that matter most though, and to help you try to mitigate the risk to your bottom line here are a few ideas for beating the higher costs resulting from dim weight pricing.
Before you ask – yes these are all real products, techniques, and tips I’ve found on the interwebs targeted to retailers who are grappling with increasing shipping costs. Caveat emptor.
Reduce Your Footprint
It’s easy to say use the right size box, but what if you don’t have it? The Bubblefast Box Sizer tool lets you modify boxes to reduce the overall cubic volume they consume and reduce the need for void filler. There is no disputing that the principles behind this tool are sound. The carriers adopted the new pricing model to combat the rising costs they were facing because their vehicles were full of half empty boxes stuffed with dunnage (and air). Your results and the practicality of this particular solution – as presented in the demo video on YouTube – cause me to question whether this tool would stand up to the rigors of a high production shipping line, or why you’d elect this one-trick pony over the less expensive and ubiquitous box cutter.
Use Data to Drive Logistics
- Auditing outbound package weight to confirm you aren’t over or under shipping the order
- Maximize storage efficiency in both your pick modules and overflow racking
- Reduce errors introduced by manual measuring and weighing options
Think Outside of the Box
- your shipping option matches your customer’s expectations of your brand, and
- you don’t become a reluctant YouTube star because something goes sideways
Choose the Right Tool
If your shipping costs for the quarter came in over budget and your CFO is asking questions feel confident in your triage planning. While there is no debating that DIM Weight pricing is having a significant impact, there are ways to mitigate the risk to profitability and find strategic partners who can help you plug profit leaks in your fulfillment program. Contact Us to learn how Jay Group’s Fulfillment Services can help you save money on shipping.