As e-commerce continues to grow, so do the shipping networks that help support the logistics of e-commerce. Shipping carriers such as UPS and Fedex have become more sophisticated in the manner in which they charge customers for shipments. Traditionally, weight has been the most important factor in determining the shipping price of a given parcel. However, this trend has changed over the past few years. Carriers are now looking more at the size of a parcel than merely the weights of its contents. A heavy, yet small rock in a small box is much easier to ship than a piece of jewellery placed in a very large box, even if the rock weighs more. The smaller the package, the less space it takes up in a truck, therefore the less resources it uses to be shipped by a carrier.
So how does this impact a shipper? First, it is important to understand the calculations used by your carriers of choice. Each carrier has a formula whereby they choose whether to price the shipping based on the weight OR the dimensions. This information is readily available and can be found on the carriers’ website or by asking your shipping rep. Once these formulas are understood, it is important to find the best packaging available in order to minimize empty space within your shipment. In minimizing the size of your packaging, you will reduce your shipping costs and add to your bottom line!