We're a third party fulfillment provider that approaches things a little differently.

Our business is being the successful extension of your business.

Enter your email below and we'll keep you up to date with the latest industry news, trends, and our growth, delivered right to your inbox.
shipping for Shopify

蜂鸟电竞数据比赛押注注册

Shopify was designed to make it easy for anyone to set up an eCommerce shop. That might be why it’s the most popular eCommerce platform, with more than 800,000 storefronts and counting. Shopify makes selling easy, but that’s only part […]

eco-friendly ecommerce question

Eco-Friendly Practices for ECommerce

Customers are making ever more eco-friendly demands of the products they buy, and that’ll likely have a direct impact on your eCommerce business. How long has it been since you’ve reviewed your store, website, and practices like fulfillment to see […]

slow-moving inventory metaphor

Slow-Moving Inventory: An ECommerce Dilemma

Slow-moving inventory presents a significant challenge for eCommerce businesses like yours. How do you understand and balance potential revenue from these products against their increased costs for warehouse space, storage, and more? When is it worth holding on to products […]

distrubution of the future

The Future of Distribution

The eCommerce distribution system is never static, as new technologies cause fundamental changes in how distribution works. Societal disruptions, like those caused by the COVID-19 pandemic, can also lead to changes in the way producers and supply chain managers handle […]

4 Tips for Getting Customer Reviews on Amazon

Customer reviews are a critical part of your Amazon business and your long-term success. They serve as a yardstick by which you can gauge customer satisfaction (or dissatisfaction), identify areas of improvement, and establish yourself as a reliable seller.  While […]

lot tracking logistics services

Why Lot Tracking Makes Good ECommerce Sense

Every eCommerce business needs to keep track of its inventory, but adding lot tracking to the mix can ensure you don’t let products expire or slip through the cracks. A lot tracking system allows companies like yours to understand the […]

dimensional weight

What Is a Dimensional Weight Scale?

Dimensional weight, or DIM weight, is a “weight” for shipping purposes based on the dimensions of the box rather than the actual weight on a scale. Every eCommerce company needs to understand dimensional weight to keep eCommerce shipping costs as […]

eCommerce packaging

ECommerce Packaging: The Ultimate Guide

ECommerce packaging is the closest your business will come to giving your customers a personal touch. The best eCommerce packaging for the optimal unboxing experience involves a mix of the right box and the right infill. These small details take […]

ltl freight shipping

What Are Logistics Services?

Logistics services are a step beyond third-party logistics (3PL). They are considered 4PL or 7PL, which combines 4PL with 3PL eCommerce fulfillment. Logistics are an essential part of your supply chain management. Fourth-party logistics can move the needle on your […]

Dimensional Pricing

What is dimensional pricing? Will it be the end of your business?

On January 2, 2015, FedEx and UPS changed how they will price shipments. We detail how this could greatly increase shipping costs for e-retailers and other businesses that use companies like FedEx and UPS to ship their products.

In addition, we breakdown why the carriers are making the change and provide examples of how the new calculations work.

Lastly, we provide possible solutions for companies that would like to reduce their shipping costs and help minimize the impact that could come from dimensional pricing.

Transcript

  1. Will It Be The End of Your Business? WHAT IS DIMENSIONAL PRICING?
  2. How does pricing work now? The historical way for calculating costs to send a package was based on a very simple method; Carriers use a table that assigns a “base rate” for every combination of weight (1-150 lbs.) and distance (Zones). The heavier the package and/or the farther you ship, the more it costs. Other surcharges and fees are then added to the base rate as they are applicable (E.g. fuel surcharge).
  3. Does it work? Historically, this pricing structure was ideal because transport trucks could use these same variables in their formulas to calculate transportation costs, and therefore determine the profit margin for each truck transporting goods.
  4. What is dimensional pricing? In other words, many of the lightweight packages you ship today could see A BIG INCREASE IN COST!!! Every package you ship will now have two weights – actual weight and dimensional weight. The larger of these two will be used to calculate the cost of your shipment (Height x Width x Length) Dimensional Factor* = Dimensional Weight * The standard Dimensional Factor that UPS and FedEx will use is 166
  5. Why the change? The convenience of online shopping with in-home delivery, has resulted in an increase in the number of lighter weight packages in bulkier boxes being shipped to homes across the world. Consumers now purchase bath robes and teddy bears online! Bigger boxes take up more room in a truck; so less space and less weight = less revenue per truck for the carriers.
  6. How will this affect my shipping cost? 3 lbs. x Zone 8 $9.84 Base (Daily Pickup) Rate 3 lbs. package shipped in a 12” H x 12” W x 18” L box From: Knoxville, TN (ZIP 37923) To: Reno, NV (ZIP 89501) TRADITIONAL (12 x 12 x 18) / 166 = 15.6 lbs. 16 lbs. x Zone 8 $18.86 Base (Daily Pickup) Rate DIMENSIONAL
  7. 3 Questions to Consider What will my margins be if I eat the cost? If I pass this cost on to my customer – how many will I lose? Will I still be in business 1 year from now?
  8. Solutions Take the Air Out Negotiate your dimensional factor Find a partner with negotiating power (E.g. a 3PL)
  9. Take the Air Out Deliberately engineer packaging to remove as much “air” as possible. If additional packaging is added when preparing to ship, educate your packing team on the effects of their decisions. This should be the first step for any company looking to avoid large dimensional weights You might be surprised how much opportunity there is
  10. Negotiate Dimensional Factor Larger Dimensional Factor = Smaller Dimensional Weight = Less Effect on Your Business Must negotiate with each carrier you use (i.e. FedEx and UPS) There are no guaranteed outcomes Shipping Revenue = Power
  11. Find a strategic partner Quality 3PL fulfillment operations minimize effect to their clients Strategic Partners help with these various strategies Examples: Negotiating power with Carriers Package consolidation Packaging engineering
  12. FOR HELP REDUCING COST OF DIMENSIONAL PRICING 800.815.STAG (7824) info@redstagfulfillment.com www.redstagfulfillment.com

We know what it's like searching for a fulfillment partner...

We've been there before! Red Stag 蜂鸟电竞数据 was born out of necessity as the sister company to support a fast growing ECommerce business. You can read more about the story of our development here .

Our business is being the successful extension of your business, and a big part of that is providing tools to help you evaluate us, and other fulfillment companies. That's why we openly share our 蜂鸟电竞数据 Provider Questionnaire, as a tool for you to use when selecting your fulfillment partner.

Download a blank questionnaire, or the questionnaire with our answers for your own internal use.

Getting started is simple

Your stuff icon

Send us Your stuff

Your orders icon

Send us Your orders

Give us 30 days icon

Give us 30 days to impress you

Take the first step
Start your no-obligation
30-Day Risk-Free Trial