What is Dimensional Weight Pricing?
Many shipping carriers are now charging based on the size of the package rather than the actual weight, using what is called dimensional, or DIM weight pricing.
Dimensional weight (or volumetric weight) pricing is calculated by multiplying a package's length by it's width and height and then dividing by a set number known as a volumetric divisor. As a result, a larger package and/or a lower volumetric divisor equates to a higher billable weight and cost.
How Does DIM effect Your Business?
While DIM pricing has been in place for air shipments for years, many carriers have now planned to apply DIM pricing to all ground shipments too. This can cause your shipping rates to increase substantially, eating into your profit margin. For high volume shippers with low margins, this can be devestating. Luckily, OSM Worldwide has a solution.
Reduce Costs with OSM Worldwide
We partner with the USPS to provide our customers with reliable solutions that avoid the need to pay those higher dim weight prices. So how does this work?
The USPS uses a volumetric divisor of 194, and only applies DIM pricing to packages larger than a cubic foot and going to zones 5-9. Comparitively, FedEx and UPS typically use a divisor of 166 and plan to apply DIM pricing to all ground shipments. This translates to lower shipping costs by utilizing our partnership with the USPS and other international postal carriers.
Contact Us to learn more about dimensional weight pricing and how OSM Worldwide can help your business.