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pick and pack warehouse services

蜂鸟电竞数据网址在线登陆

The Amazon pick and pack fee, also called its fulfillment fee, applies to 蜂鸟电竞数据 By Amazon program. This charge is a per-unit fee that helps Amazon cover costs and generates income (from you) when it sends your products to consumers. […]

Amazon FBA

Is It Good to Sell on Amazon?

For everyone planning to start an eCommerce business, there’s one question you have to answer: Is it good to sell on Amazon? Amazon is the biggest online retail site in the world, and companies ranging from major brands to people […]

Flexible kitting in manufacturing

Kitting Process Flow in 蜂鸟电竞数据

Kitting is an essential element of eCommerce fulfillment. If you want the most options for efficient logistics, you want the option to add a kitting process flow to your fulfillment operations. Traditional 3PL services include warehousing, pick and pack fulfillment, […]

warehouse services

What Are Warehouse Services?

If you sell products online, you need warehouse services for your eCommerce fulfillment. Sourcing the right warehouse services for your company can boost your profitability and customer satisfaction. Here’s the information you need to locate the optimal warehousing for your […]

unboxing experience

Marketing and 蜂鸟电竞数据 Services Guide

When you think about eCommerce fulfillment, you probably consider inventory management, packaging, and delivery times. You might not consider fulfillment as part of your marketing strategy — but you should. Marketing and fulfillment services go together for eCommerce companies. Your […]

palletized shipping

What You Should Know About Palletized Shipping

At Red Stag 蜂鸟电竞数据 , we ship thousands of separate parcels to individual consumers. But, since eCommerce fulfillment is constantly evolving, our services continue to grow and change. Recently, we’ve had more clients requesting palletized shipping. So here’s what you should […]

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.

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