Why Am I Being Charged a 70 Pound Rate for My 1 Pound Box?

Dimensional weight is how the carriers bill for the size or volume of a package in a shipment, not just the package weight. The concept is simple. Think of shipping the proverbial 1 pound box of feathers. It's a big box, but there is little weight. And that's the problem - too much space taken up for too little revenue.

To address this, dimensional weight was born. Carriers now want the box size along with the box weight so they get the revenue for the space as well as the weight. How does this affect you as a shipper? It's pretty basic - if you don't account for the correct box size and weight, you can get some real surprises on your carrier billing.

Providing the dimensions is important so that you know how much it will cost to ship a package. Carriers also categorize different box sizes into different dimensional price groups, so it's sometimes more complicated than just a simple calculation.

Shipping software systems handle this situation so that you are not ambushed by extra charges after you ship. Typically, you enter the box measurements, and then the shipping system takes over. Some shipping systems, like Harvey Software's Computerized Parcel System (CPS™), let you keep a data file with your box sizes so you only have to choose the right box type instead of entering the box dimensions every time.

Tired of Playing "Commercial/Residential Address" Roulette?

Address problems come in two categories. First, when the address is wrong, even if the customer typed it themselves. (When you have an online store, you discover that not everyone actually knows where they live!) Second, when you have pages of residential delivery fees that you didn't expect and did not charge to your customer. The first problem means you can have undeliverable packages (or packages with expensive address correction charges) making unhappy customers. The second problem of unexpected fees makes you unhappy. An additional layer to this problem is that address verification programs can cost in the thousands, so how can you make a solution for these problems cost effective?

Here is one way to solve this - address verification capability right in your shipping system. For example, Harvey Software makes an Address Verification Module (AVM) for its CPS shipping software. The AVM uses the USPS CASS certified database and: 1) Makes rate shopping happen correctly between residential and commercial services; 2) Warns you if the residential/commercial choice is incorrect; 3) Tells you when an address doesn't exist; 4) Lets you know that the address exists but is missing some key information such as suite number apt. #, etc.; and 5) Standardizes addresses to match the USPS CASS certified database. The cost for the AVM is just $199.95.

CPS is not the only shipping system that has this available, although the CPS AVM is definitely one of the least costly. Address checking in your shipping system is another way a good shipping system can help your company and put money on the bottom line.

Success Story - From Start Up to Leader

Alibris has announced that it grew sales for its sellers in the 2008 winter-holiday season by more than 8%, even as online book sales shrank 1% during that same period, according to reports. No surprise here.

From startup just over 10 years, today Alibris lists over 100 million volumes from over 15,000 book sellers participating in the Alibris network, with almost 1 million volumes stocked in their warehouse.

Early on, Alibris identified a need for the advanced technology required for low-cost logistics capabilities and a smooth, consistent order flow. Alibris chose Harvey Software's Computerized Parcel System (CPS™) to act as the heart of their shipping operation, including shipping with UPS.

"CPS provides robust technology as a solution to these issues."
VP of Operations
Alibris
http://www.alibris.com

Read more here about Alibris and how CPS helps with their shipping issues.

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Look for these advanced benefits in a shipping system to save money and optimize the daily shipping process:

• Domestic and International shipping services supported


• Automatically resolution of residential and commercial address status


• Easy integration with in-house data and existing systems


• Automatic determination of least cost way to ship using shipper created rate comparison codes


• Easy to use cost monitoring reporting so users can offer flat rate or free shipping without worry
  

Getting the Best Rate for Every Package You Ship

Getting the best rate for each package involves several factors. One carrier may be best for lighter packages, another for heavier packages, still another for residential deliveries - plus you might get special incentives for your ground or air packages. Master these variables and you will control shipping costs like never before.

Satisfied with your current shipping system or could it use an update? Here are three things to look for so that you get the best for every shipment.

First, your shipping system needs to show you your company's actual shipping rates and have them available as each package is shipped. Make sure your shipping software company can work with the rates your company negotiated with the carrier. For the USPS, be sure your shipping system supports the Retail/Commercial Base/Commercial Plus rates from the USPS.

Next, you need accurate addresses. In addition, when you are shipping to residences and businesses, you avoid unexpected charges if you can determine the address classification as well check the accuracy of the address. Shipping systems with address checking modules can help with this right at the time the package is shipped.

Finally, you need a quick way to accurately compare between your company's actual or contracted rates with the carriers. You are not getting the whole job done if you are just comparing the carriers' published rates. Let's use our CPS shipping software with its RateBot™ feature as an example of how this can work for you. RateBots are automatic rate comparison codes to let you easily control price shopping. For example, set up a RateBot to get the best price for ground delivery service, then use that RateBot to price shop all of your ground packages. CPS even optionally determines if the address is commercial and residential, so the entire "best rate" process is hands-off, automatic and takes many factors into account. You can set up as many RateBots as you need, such as one for ground service, another for the best price on next day service, etc.

Harvey Software's CPS™ shipping software helps with each of these three "must have" shipping system items. Look for these features like these in your shipping system and start putting each carrier’s rates to work the best for you.

Is there a backup?

That's one computer question that no one likes to hear. It’s even less popular when the answer is "No". This is normally followed by either silence or bad words. Most of the time, computers, as reliable as they are, still fail without any warning. "It was working, but then…" And after that starts either a nightmare or the relief that the planned backup system has saved the day.

You can make local backups, you can use an online service, and some applications (such as our CPS™ shipping software) have a built-in backup to save those specific applications. Local backups might be set up by your network person, or you might just copy your important files to a file server using a backup application or Windows Explorer or the Windows backup program. Online backup systems include Carbonite.com and Symantec. Finally, some applications have built-in features to backup themselves. So there are solutions out there to help make your data safer.

But it's not just a computer failure. Data corruption due to a power failure (we'll cover this in another Blog), files that are deleted accidentally (or otherwise), and other things happen. A current backup can save the day. Be ready.

Summary of Important 2009 Changes by the Major US Parcel Carriers

Now that the dust has settled on this year's shipping updates, here is a summary of major changes by each carrier. UPS and FedEx changes were effective 01/5/09 with the US Postal Service® changes effective 01/18/09. I've also listed any changes in our CPS™ shipping software that go along with the carrier changes.

For FedEx® Express, FedEx Ground and FedEx Home Delivery shippers, there are new prices for 2009. This includes new rates for shipping and for services like COD, etc, as well as new rural surcharge areas. In addition to adding these changes, CPS includes an updated, smoother end of day closeout procedure for FedEx.

For UPS®, there are new prices 2009 UPS rates and services. UPS also has new rural and extended area surcharges. International UPS shippers will benefits from new shipment validation of international shipments, plus the UPS international Paperless Invoice (a contracted service) is also updated. CPS adds all of these plus an updated end of day closeout for UPS.

Those using the US Postal Service must consider several important changes. There are new domestic package rates and new discount classifications - Commercial Base and Commercial Plus. Commercial Plus is the highest discount category. Only those shipping the highest volumes (100,000+ per year) can take advantage of the Commercial Plus discounts. Starting 1/18/09, if you manifest you must use USPS® Commercial Base domestic rates. Retail rates are no longer accepted on the manifest. If you use a manifest, each of these Commercial price groups provides better prices, but it's only for domestic US shipments.

International USPS shippers also have a rate discount category, Commercial Base. However, Commercial Base rates for international shipping are only available when using an online postage service like Endicia. With discounts up to up to 10% for some services, this is a great option for international shippers.

Finally, a new small flat rate box is now available for domestic and international shippers. All of these money saving rates, requirements, etc., are in the newest CPS.

The newest rates for the regional carrier SpeeDee Delivery are also included in CPS. SpeeDee added a new account format which is also support in the 2009 version of CPS.

That's what's new so far. Coming up are changes for USPS shippers that will be effective on 05/11/09. More info on those as it's available.

The "Other Side" of Carrier Fuel Surcharges

When fuel surcharges were approaching 35%, it became very important to that surcharge amount when making rate comparisons. After all, that's a BIG percentage to miss in rate shopping. With the drop in oil prices in the last few months, the previously high is now 1%. That means the fuel surcharge is still important to consider, but for the opposite reason. The carrier that would not win the price comparison several months ago might be the carrier to choose today.

The question is how do you keep up with these rate factors that do change monthly and can change a lot in a relatively short period of time? Today's multiple carrier, automated shipping systems can factor in the fuel surcharge and the commercial or residential status of an address when making rate comparisons. Accurate, even automatic, "best rate" shipping helps tremendously in dealing with these ever changing shipping costs. Getting the best price for every package may be even more important today than ever, especially since when a customer thinks shipping is too high, you might lose the sale.