Dimensional Weight Pricing: Why Your Shipping Costs More Than You Think
Dimensional Weight Pricing: Why Your Shipping Costs More Than You Think
You ship a 2 lb package. The carrier charges you for 8 lbs. What happened?
Dimensional weight pricing. And if you’re not optimizing for it, you’re overpaying.
What Is Dimensional Weight?
Carriers have limited truck/plane space. A giant box of packing peanuts takes up the same space as a giant box of lead, but one weighs nothing. To account for this, carriers charge based on whichever is greater: actual weight or dimensional weight.
Dimensional weight formula:
Dim Weight = (Length × Width × Height) / DIM Factor
The DIM factor varies by carrier:
- FedEx/UPS domestic: 139
- USPS: 166
- International: Often 139 or lower
An Example
You ship a box: 18” × 12” × 10” containing a 2 lb item.
Dim Weight = (18 × 12 × 10) / 139 = 15.5 lbs
Actual weight: 2 lbs Billable weight: 15.5 lbs (the greater of the two)
You’re paying for 15.5 lbs of shipping for a 2 lb item. That’s a 675% markup.
Why This Matters
For lightweight, bulky items, dimensional weight dominates your shipping costs. Categories hit hardest:
- Apparel: Light but needs space to avoid crushing
- Home goods: Pillows, lampshades, anything with air
- Electronics: Often packed with lots of protective material
- Promotional items: Branded boxes bigger than necessary
If your average dim weight is 3x your actual weight, you’re paying 3x what you could be.
The Box Size Problem
Most operations stock 4-6 box sizes. When an order doesn’t fit perfectly, you use the next size up. That extra space costs money.
Example: Item fits in a 10×8×6 box, but you only have 12×10×8.
- Optimal box dim weight: 3.5 lbs
- Actual box dim weight: 6.9 lbs
If shipping costs $0.50/lb, that’s an extra $1.70 per package. At 1,000 packages/month, that’s $1,700/month in wasted shipping.
Solutions
1. Right-Size Your Box Inventory
Analyze your order data. What are the most common item combinations? Stock boxes that fit those combinations well.
This requires data you might not have. What percentage of orders are single-item? What are the top 10 multi-item combinations? Most operations guess instead of measuring.
2. Use Bin Packing Optimization
Instead of packers choosing boxes by gut feel, use software to recommend the optimal box for each order.
This is what StoaPack does. You input your box inventory and item dimensions. For each order, it calculates the best box (or boxes) considering:
- Available box sizes
- Item dimensions and orientations
- Weight limits
- Fill percentage (don’t pack fragile items at 100%)
3. Consider Poly Mailers
For soft goods (apparel, accessories), poly mailers eliminate dimensional weight entirely. USPS charges actual weight for poly mailers. FedEx and UPS have similar programs.
Not everything can go in a poly mailer, but for items that can, the savings are significant.
4. Negotiate DIM Factors
High-volume shippers can negotiate better DIM factors with carriers. If you’re shipping 10,000+ packages/month, ask. A DIM factor of 166 instead of 139 is an instant 20% reduction in dim weight.
Measuring the Impact
To understand your dim weight exposure:
- Pull your last 1,000 shipments
- Calculate dim weight for each: (L × W × H) / 139
- Compare to actual weight
- Calculate: (Dim Weight - Actual Weight) × Cost per lb
That’s how much you’re paying for air.
The StoaPack Approach
StoaPack optimizes for three goals:
- Minimize boxes: Fewest packages, lowest handling cost
- Minimize wasted space: Highest fill rate, lowest dim weight
- Minimize cost: Factor in box costs and shipping rates
For dim weight optimization, “minimize wasted space” is usually the right choice. Pack items as tightly as safely possible, recommend the smallest box that fits.
The result: less air, lower dim weight, lower shipping costs.
StoaPack is a 3D bin packing API that optimizes box selection. Try it free.