What is Dimensional Weight?
Dimensional Weight is a pricing method that factors in package size and weight to calculate fair shipping costs for larger, lighter packages.
Explanation
Dimensional weight is calculated by measuring the length, width, and height of a package, multiplying those dimensions, and then dividing the total by a dimensional divisor specified by the carrier. This result is then compared with the actual weight of the package, and the greater of the two weights is used to determine the shipping cost. Dimensional weight is commonly used by shipping carriers like UPS, FedEx, and USPS to calculate the cost of shipping based on the volume of the package rather than just its weight.
Importance
- Fair Shipping Pricing: Ensures merchants are charged based on both size and weight, preventing undercharging for large, lightweight packages.
- Efficient Space Utilization: Encourages better packing practices, as merchants are incentivized to minimize the size of packages to reduce shipping costs.
- Cost Savings: Helps businesses optimize their packaging strategy to avoid paying for unnecessary space in the shipping process.
- Competitive Advantage: Allows businesses to choose the most cost-effective shipping options by considering dimensional weight for different carriers.
How It Works
- Measure Package Dimensions: Merchants measure the length, width, and height of their package in inches or centimeters.
- Apply Dimensional Divisor: The carrier's dimensional divisor is used to divide the calculated volume (length × width × height) to determine the dimensional weight.
- Compare with Actual Weight: The higher of the two weights—the dimensional weight or the actual weight—is used to calculate shipping costs.
- Adjust Packaging: Merchants can optimize their packaging to ensure that dimensional weight doesn’t exceed the actual weight, potentially lowering shipping costs.
Benefits
- Cost Optimization: Reduces shipping expenses by encouraging merchants to consider both size and weight when shipping.
- Transparent Pricing: Provides a clearer understanding of how shipping charges are calculated, helping businesses make informed decisions about packaging.
- Incentive for Better Packaging: Encourages businesses to use efficient packing materials and methods, reducing wasted space.
- Accuracy in Shipping Costs: Helps businesses avoid surprise charges from carriers by considering dimensional weight when choosing shipping rates.
Top Shopify Apps for Dimensional Weight and Shipping Optimization:
Shipping Rates — MaveShip
- A multi-carrier shipping app that can calculate dimensional weight and compare shipping costs across multiple carriers.
- Helps merchants optimize their shipping strategy by considering both dimensional and actual weight in their shipping calculations.
Easyship ‑ All in One Shipping
- Offers an all-in-one shipping solution that incorporates dimensional weight calculations to help merchants get the most cost-effective shipping rates.
- Provides tools to help merchants adjust packaging and optimize shipping costs based on dimensional weight.