FedEx announced changes to their packaging dimensions and weight, raising their rates and changing how they charge customers effective Jan 2, 2017. This recent news is important to the packaging industry, as many companies will want to change how they package products in order to meet FedEx’s new guidelines.
FedEx’s changes continue with a trend they started in 2014, where they charge according to dimensional (or “dim”) weight, instead of using traditional measures. When the dim weight is higher than actual weight, FedEx charges more for shipping. In 2017, FedEx will be changing their dim formula from 166 to 139, further increasing rates for customers, particularly those with small shipments.
For example, under the new formula, a small package that measures 12x12x12 will be charged as a 13 lb package, when it previously would have been charged at 11 lbs. With larger packages, the rate increase will be even larger. With the changes, it’s becoming more important than ever to work with product packaging to make it cost-effective. For example, many smaller gifts currently use larger packaging, leaving a large amount of the box unused by the product. With FedEx’s new regulations, it makes sense for businesses to focus on making their gift packaging more compact.
It’s also important to note that UPS is not changing their weight guidelines in 2017, although they also plan to increase fees in some areas. For some products, it may make sense to assess if changing shipping carriers would make sense for their business.
We remain committed to creating product packaging that is cost-effective, beautiful, and adaptable. Contact us to learn more about e-commerce packaging that will keep your shipping costs down!