Actual vs Volumetric Weight: How to Avoid Unexpected eCommerce Shipping Charges

Some products may not seem heavy, but if they don’t fit in a box under one kilogram, you may be surprised at how much the shipping cost can be. In many situations, shipping a heavy product costs less than shipping a light product. This is because shipping companies charge based on the space a shipment takes up, not the product’s actual weight.

When a product takes up more space than its weight, shipping companies charge based on the product’s space. As a result, many businesses ship more products than necessary, increasing overall costs.

To control shipping costs, businesses need to understand how shipping companies determine chargeable weight. This blog post explains shipping company chargeable weight and provides examples to help businesses better understand shipping costs.

Actual vs Volumetric Weight: What’s the Difference?

There are two forms of weight a carrier considers when determining the chargeable weight of a shipment: actual weight and volumetric weight.

Actual weight is the weight of the shipment as measured on a weighing scale. For example, if a packed parcel weighs 2 kg, the actual weight is 2 kg, irrespective of how big the parcel is.

Unlike actual weight, volumetric weight reflects the space a package takes up in the transportation system. A large box of lightweight products, for example, may have low actual weight but high volumetric weight. Carriers use this measurement to evaluate the space bulky shipments occupy in vehicles or aircraft.

Both actual weight and volumetric weight are calculated for every shipment. The higher of the two is used as the chargeable weight. 

How Is Volumetric Weight Determined?

The formula for determining volumetric weight is as follows:

Volumetric Weight = (Length × Width × Height) ÷ DIM Factor

Dimensions are measured in centimeters, and the DIM factor varies by carrier, service type, and terms of the shipping agreement.

Suppose a package is:

Length: 40 cm

Width: 30 cm

Height: 20 cm

Actual Weight: 3 kg

With a DIM factor of 5,000:

Volumetric Weight = (40 × 30 × 20) ÷ 5,000 = 4.8 kg

In this case, the package has a volumetric weight of 4.8 kg. 

To compute shipping costs, dimension accuracy is essential. A small discrepancy in package dimensions can be the difference between the charged weight and the shipping cost for the order.

Which Weight Do Couriers Charge For?

Courier services compute both the actual weight and the volumetric weight of a shipment, and charge the higher of the two. This system helps courier services recover their capacity costs for transporting shipments that take up space but are lightweight.

Example:

The chargeable weight of Shipment A is 2 kg; Shipment B has a chargeable weight of 4 kg. Shipment C weighs 5 kg and has a volumetric weight of 3 kg. Therefore, Shipment C’s chargeable weight is 5 kg.

Shipping light or bulky items can affect shipping costs. Poor packaging may lead a business to think its logistics costs are lower and its products more profitable than they are in reality.

Unexpected Shipping Costs

Unexpected shipping costs do not always come from changes in courier rates. Usually, they come from the way products are packed, measured, and processed before they are dispatched.

Packaged in Large Boxes

Using a large box to pack a product with empty space can result in the same product occupying a relatively large volume. This increases the shipping volume weight and thus increases the transportation cost.

Too Much Packaging

Though essential, additional layers of packaging material (bubble wrap, fillers, cardboard, etc.) can significantly raise the weight and size of a package. Extra layers of protection are warranted for fragile products, but excessive packaging can be cost-ineffective for the company in terms of logistics.

Incorrect Package Dimensions

Dimensions entered in the system can affect the calculation of shipment costs. If the dimensions entered in the shipment system are bigger than the actual package dimensions, the company may be charged costs applicable for a higher weight.

Courier-Specific Pricing Rules

Because different courier companies may have different DIM factors, weight slabs, minimum chargeable weight, or pricing, the same package may have different costs depending on the chosen courier and the service selected.

Bulky Products

Some products are naturally bulky or take up more space relative to their weight. Examples include cushions, clothing, stuffed animals, decor items, and some household goods. These products can have a high dimensional weight even when their actual weight is low.

Mistakes in Dimensions or Weight Manually Entered in a Shipping Cost Calculator

Many businesses with high order volumes rely on estimates for item dimensions and weights. A common input error can lead to significant logistics costs.

How to Control Logistics Spending

One of the easiest ways to control unnecessary logistics spending is to reduce package dimensions. However, companies should not sacrifice product safety and should aim to make their packaging as efficient as possible.

Use Right-Sized Packaging

Skillfully pack your product in a container where the dimensions of the product when it is packaged are equal to or smaller than the dimensions of the shipping container. Avoid wasting money on large shipping containers when smaller shipping containers can safely hold your product.

Get Rid of Unnecessary Empty Space

Large empty spaces in a box have dimensions but no monetary value. Use your packaging materials with proper fillers to maintain the safety of your product and the compactness of your packaging.

Look Into Packaging Different Products

Depending on your product line, using one standard size of packaging may not be the most effective solution.

Measure Packages Accurately

Packaging must be measured after it has been filled to avoid an estimated charge that is over the shipping cost.

Compare Courier Options

The cheapest base rate may not actually be the least expensive method for shipping your product. Compare rates offered by shipping companies. Consider shipping weights, service offerings, and other dimensional weight shipping rules offered by different shipping companies.

Analyze Shipping Data

Analyze the price of shipping compared to the estimated cost. Look for heavy or bulky products that may be costing your company money.

Ship Smarter with RapidShyp

Increased order volume and multiple shipping partners make evaluating individual shipments cumbersome. A shipping solution that can be used in multiple shipping lanes that simplifies choices for operators and increases visibility is required.

AI-Driven Courier Allocation

RapidShyp’s Ayumi Select uses industry-leading AI to identify the best courier options based on serviceability, performance, transit time, and cost. With this technology, businesses choose couriers more logically, rather than being limited to one logistics provider.

Multi-Courier Shipping

A business partner platform allows businesses to have access to multiple courier partners, enabling them to compare many options and choose the best available services for each distinct shipping requirement.

Real-Time Shipment Tracking

Visibility during the logistics process, from the time a shipment leaves the facility to the time it is delivered, helps businesses identify insufficient logistics performance and delays. It also helps them to keep their clients up to date about the status of their shipments.

Shipping Insights

Shipment and logistics performance helps businesses identify gaps and patterns in delivery times and logistics costs. These performance gaps and patterns assist businesses in shaping more informed decisions regarding optimized packaging and logistics costs.

Scalable Shipping Operations

As a business grows, managing large order volumes becomes a challenge. RapidShyp provides a powerful shipping platform that helps businesses automate their fulfillment operations.

Conclusion

While there are many factors that lead to surprise shipping costs, one major factor is how big a product is, not how heavy it is. The terms actual weight and volumetric weight represent how something is billed based on size and weight, respectively. Understanding both helps in understanding shipping costs.

Using the best fit dimensions leads to right-sized packages and efficient use of shipping materials. Keeping a close eye on what is billed can help a business determine if shipping costs can be lowered. Shipping costs are often unavoidable, but sometimes, through use of different couriers and better analysis of shipments, unexpected costs can be lowered.

As shipment volume increases, better and smarter shipping decisions have to be made. Timely and appropriate use of shipping materials helps lower the costs of shipping materials and better control shipping costs. Proper integration of these two ideas lead to lower logistics costs and reliable customer service.

Frequently Asked Questions (FAQs)

1. What is the difference between volumetric weight and actual weight of a package?

Actual weight is the weight of a package. Volumetric weight is the weight of a package based on the space occupied by that package.

2. Why is volumetric weight relevant to eCommerce?

Volumetric weight matters because it accounts for the space a package uses, especially for lightweight items in large packages.

3. How do I lower volumetric weight?

Before shipping, pack correctly. This can be achieved by avoiding unnecessarily large packaging and filling up the empty spaces. The weight and dimensions of the product should also be measured.

4. Are the volumetric weights the same for all couriers?

The volumetric weights for different courier companies can be different. Some courier partners may have their own Dimensional Weight pricing and rules. It is advisable for businesses to go through the terms and conditions of courier services before calculating the expected cost of shipping.

5. How can businesses avoid payment of additional shipping charges?

Unanticipated charges for shipping can be avoided if a company takes proper measurements before shipping a package, efficiently packs a shipment, compares different carriers, and inspects the weights that are billed.