There’s an Upside to Dimensional Weight PricingAugust 19, 2015
When carriers announced their switch to dimensional weight pricing, there was a near panic in the ecommerce industry, since many e-tailers were facing increased shipping costs with the change. But in the long run, there is an upside to dimensional weight pricing: the revamping of your logistics program.
If you want to successfully transfer to DIM pricing, you’ll need to upgrade your logistics operations. Though changes can be difficult in the early stages, it’s a chance to optimize operations, strengthen carrier relationships, please your customers, and become a more efficient, eco-friendly e-tailer.
For starters, to keep your shipping rates from increasing, you’ll need to reevaluate your packaging for efficiency. Where necessary, use smaller boxes and optimize your dunnage. But while doing this, don’t forget about your customers and the unboxing experience you want to give them. Opening your product is the last impression a customer has of you until their next order, so think about what personalization or package designs work best.
The switch to DIM pricing is also the perfect opportunity to evaluate your carrier contract. Can you to negotiate a higher DIM divisor, bulk discount, or other mutually beneficial arrangement? Remember, not everyone can negotiate with carriers effectively on their own – but your 3PL provider should. At Fulfillment Works, we offer the most aggressive pricing every day and we regularly, relentlessly negotiate with all our suppliers and pass the discounts on to you.