If you‘ve ever shipped a package with UPS, you know that the cost is not just based on how much the package weighs. You may have been surprised by a higher than expected shipping charge and wondered, "Does UPS charge by weight or size?"
The answer is both, and it‘s important to understand how UPS calculates shipping rates to avoid overpaying. In this comprehensive guide, we‘ll break down everything you need to know about UPS‘s pricing strategy from the perspective of a picky shopper and retail industry expert.
UPS Shipping Rates: The Basics
First, let‘s cover the fundamentals of how UPS determines shipping costs. There are two key factors:
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Actual weight: This is the physical weight of the package measured in pounds. Simple enough, right?
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Dimensional weight: Also known as DIM weight or volumetric weight, this is a calculation that factors in the size of a package in addition to its weight.
UPS uses the greater of the actual weight or dimensional weight to determine the billable weight for shipping charges. So even if your package is physically light, it may be subject to a higher DIM weight based on its size.
What is Dimensional Weight?
Dimensional weight is essentially a density-based pricing technique used by UPS and other carriers to account for the space a package takes up on a truck or plane in relation to its actual weight.
Here‘s a simple way to think about it: Imagine you‘re packing for a trip and have a limited amount of suitcase space. You‘d want to fill that space with items that are dense and compact rather than bulky and lightweight to maximize what you can bring. The same concept applies to how carriers fill their cargo space and the rates they charge.
As e-commerce has grown and more large but lightweight packages are being shipped, dimensional weight has become an increasingly important factor in pricing. In fact, a 2020 report by FreightPop found that a whopping 74% of packages are now subject to dimensional weight charges, up from just 44% in 2016. This means more shippers are paying based on the size of their packages rather than the actual weight.
How to Calculate Dimensional Weight
To determine if your package will be subject to dimensional weight pricing, you need to calculate the DIM weight and compare it to the actual weight. Here‘s the formula UPS uses:
- Measure the length, width, and height of the package at its longest points in inches. Round each measurement to the nearest whole number.
- Multiply the length, width, and height together to get the cubic size in inches.
- Divide the cubic inches by the UPS dimensional weight factor to convert to dimensional weight in pounds:
- For U.S. domestic shipments, divide by 166
- For international shipments, divide by 139
Let‘s walk through an example. Say you‘re shipping a package with dimensions of 20" x 10" x 8" and an actual weight of 5 lbs.
- Length: 20"
- Width: 10"
- Height: 8"
- Cubic inches: 20 x 10 x 8 = 1,600
- Dimensional factor (U.S. domestic): 166
- Dimensional weight: 1,600 / 166 = 9.6 lbs, rounded up to 10 lbs
Since the dimensional weight (10 lbs) is greater than the actual weight (5 lbs), UPS would charge based on the DIM weight of 10 lbs in this case.
Real-World Examples of Dimensional Weight in Action
To further illustrate the impact of dimensional weight, let‘s look at a few common shipping scenarios and how the pricing would differ based on actual weight versus DIM weight.
Example 1: Small and Heavy
* Item: Cast iron skillet
* Dimensions: 16" x 12" x 4"
* Actual weight: 12 lbs
* Dimensional weight: (16 x 12 x 4) / 166 = 4.6 lbs
In this case, the actual weight is greater than the dimensional weight, so the shipping charges would be based on the 12 lb actual weight.
Example 2: Large and Light
* Item: Motorcycle helmet
* Dimensions: 24" x 16" x 12"
* Actual weight: 6 lbs
* Dimensional weight: (24 x 16 x 12) / 166 = 27.8 lbs
Here, the dimensional weight far exceeds the actual weight due to the large box size relative to the lightweight helmet inside. The shipping charges would be based on the 28 lb dimensional weight (rounded up from 27.8).
Example 3: Optimal Packaging
* Item: Pair of sneakers
* Dimensions: 14" x 10" x 6"
* Actual weight: 3 lbs
* Dimensional weight: (14 x 10 x 6) / 166 = 5.1 lbs
In this example, the dimensional weight and actual weight are very close because the box is an appropriate size for the contents. The shipping rate would only be slightly higher than if charged by actual weight.
These examples demonstrate the importance of choosing appropriate packaging to minimize dimensional weight charges. Whenever possible, use the smallest box or envelope that safely fits your items. Avoid unnecessary fillers that add bulk without protection.
How Dimensional Weight Policies Have Evolved
UPS first implemented dimensional weight pricing in 2006 for U.S. ground shipments and has steadily expanded it over the years. Prior to 2015, dimensional weight only applied to packages over 3 cubic feet. But in 2015, UPS and FedEx both changed their policies to include all packages, regardless of size.
This shift had a significant impact on shipping costs for many businesses, particularly those shipping primarily lightweight, bulky items. An analysis by Shipware estimated that shippers would see an average increase of 17-30% in UPS Ground costs as a result of the DIM weight policy change.
In recent years, major carriers including UPS have also increased their dimensional weight factors, effectively lowering the threshold for when DIM weight applies. In 2017, UPS increased the domestic dimensional factor from 166 to 139, matching the international factor. The higher the DIM factor, the more packages will be subject to dimensional weight pricing.
These policy changes have made it more important than ever for shippers to understand how dimensional weight works and take steps to optimize their packaging. Consumers are also bearing some of the costs in the form of higher shipping fees or product prices as businesses try to offset the impact.
Dimensional Weight Factors Vary by Carrier
While UPS and FedEx use the same dimensional weight factors, other carriers have slightly different policies. Here‘s a quick comparison:
| Carrier | Domestic Dimensional Factor | International Dimensional Factor |
|---|---|---|
| UPS | 139 | 139 |
| FedEx | 139 | 139 |
| DHL | 139 | 139 |
| USPS | 166 | N/A |
As you can see, USPS still uses the old 166 factor for domestic shipments, which means fewer packages are subject to dimensional weight charges compared to UPS and FedEx. This can make USPS a more cost-effective option for certain lightweight, bulky shipments.
However, USPS has its own size limitations and surcharges that can add up for larger packages. It‘s always worth comparing rates and services across carriers to find the best option for your specific shipment.
Advanced Tips for Optimizing UPS Shipping Costs
In addition to right-sizing your packaging to minimize dimensional weight, there are a few other strategies savvy shippers can use to reduce UPS costs:
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Consolidate shipments: If you have multiple packages going to the same destination, consider consolidating them into a single, larger package. This can help you avoid multiple DIM weight charges and take advantage of economies of scale.
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Use third-party insurance: UPS offers shipping insurance, but the rates are often higher than third-party options. Consider using a company like Shipsurance or U-PIC to insure your packages at a lower cost.
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Leverage hybrid services: UPS offers several hybrid services that can provide cost savings for certain shipments. For example, UPS SurePost uses the UPS network for the initial leg of transit and then hands off to USPS for final delivery. This can be cheaper than regular UPS Ground for lightweight packages.
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Negotiate rates: If you ship frequently or in high volumes, you may be able to negotiate discounted rates with UPS. It never hurts to ask your account representative for better pricing or shop around with other carriers to see if UPS will match their rates.
How to Dispute Dimensional Weight Charges
Sometimes, despite your best efforts to optimize packaging and estimate costs, you may still get hit with an unexpected dimensional weight charge. If you believe the charge is inaccurate, you can dispute it with UPS by following these steps:
- Gather documentation of the package dimensions and weight, such as packing slips or photos.
- Contact UPS customer service via phone or email to initiate the dispute process.
- Provide the tracking number, shipment details, and your documentation.
- UPS will review the claim and make a determination, usually within 7-10 business days.
- If approved, UPS will issue a refund or credit for the overcharge amount.
Keep in mind that UPS reserves the right to re-measure and re-weigh packages at any point during transit, so it‘s important to be as accurate as possible when entering dimensions and weight during the shipping process.
Key Takeaways
Dimensional weight is a complex topic, but understanding how it works is crucial for managing shipping costs with UPS and other carriers. To recap:
- UPS charges based on the greater of actual weight or dimensional weight for all packages
- Dimensional weight accounts for package density and is calculated using cubic inches and a dimensional factor
- DIM weight policies have become more stringent over time, with a larger percentage of packages now subject to dimensional pricing
- Shippers can minimize dimensional weight impact by optimizing packaging, consolidating shipments, using hybrid services, and negotiating rates
- Disputing inaccurate dimensional weight charges is possible with proper documentation
By following the tips and strategies outlined in this guide, you can take control of your UPS shipping costs and make more informed decisions as a savvy shipper. Don‘t let dimensional weight catch you by surprise – be proactive and package smart to keep your costs in check.
