This Podcast explains why at the beginning of 2015 UPS and Fedex not only raised their rates but, at the same time introduced Dimensional Shipping Rates (DSR). DSR has been created to offset additional shipping costs created by companies like Amazon. Amazon will ship an iPhone in a box that can hold 100 iPhones thus, UPS and Fedex are shipping big boxes that way nothing and take up a lot of space. Instead of dealing with the problem they are passing on the new expenses to the consumers by raising there rates by at least 5% in the best case and 25% or more the rest of the time.
The shipping game has changed! The DSR’s have made shipping with UPS and Fedex more difficult and expensive. The items that really get hit the hardest are large boxes that do not way very much. For example, an Air Conditioner Shroud may only way 18 lbs including the box but, because of the size of it could ship at the dimensional rate of 129 lbs. That is not affordable and not every item falls into this category. We have started to ship more with USPS which creates more work for us but, it reduces the shipping costs for our customers.
We pay for shipping on items we buy online or from our suppliers and we get hit with the same high costs of shipping and are very aware that high shipping costs can make us lose business. When we process any of our online orders we always look at the shipping charges and see if there is a way to ship it for less to save our customers money and if we find a less expensive method we refund the difference. We have made some deals with our suppliers to get better rates when we have items drop shipped and all of the savings get passed on, shipping is not a profit center of us, it is a tool to deliver goods to our customers.
Listen Now to the Entire Episode!