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pick and pack fulfillment

How Does RSF Achieve Such Low Fulfillment Error Rates?

Fulfillment error rates are a vital metric for your eCommerce fulfillment. Every fulfillment mistake has the potential to harm your business. Of course, no fulfillment center is perfect—everyone makes a mistake sometimes. But Red Stag Fulfillment strives for perfection and […]

california fulfillment container ships

The Truth About California Fulfillment Costs and Needs

California fulfillment locations are often hyped as premium locations because they’re near major ports, but most marketing downplays their high costs. Knowing if they’re right for you can be a tricky proposition. That’s especially true if you don’t look at […]


Kitting for Fun and Profit: Grow Sales, Cut Costs

Kitting is a terrific way to boost sales in your eCommerce business. Selling and shipping in sets can reduce your packing and shipping costs and kits can increase revenue and customer satisfaction. Also, kitting can streamline your eCommerce fulfillment and […]

direct-to-consumer fulfillment warehouse

Shipping Distribution for Today’s ECommerce Company

Every eCommerce business needs a reliable shipping distribution plan and warehouse to run smoothly. Fulfillment services and distribution centers offer multiple ways for you to have the warehousing and supply chain support that keeps orders flowing freely and arriving on […]

The Herd at Red Stag

Small Business Resource Guide

Small business is one of the biggest drivers of economic growth in the U.S. The latest update from the Small Business Administration (SBA) still shows that 99.9% of U.S. businesses are small businesses. Those companies provide 47.1% of all private-sector […]


Is FBA National Fulfillment Right for You?

Fulfillment by Amazon (FBA) is an easy choice for many Amazon sellers. You pay one bill for all the marketplace services related to selling on Amazon. You can offer Prime shipping, and your listings are more likely to win the […]

What ECommerce Companies Need to Know About Custom Packaging

Custom packaging is where eCommerce fulfillment meets marketing. Creative and fun packaging, tape, or even infill expresses your brand persona that your online customers will appreciate every time they receive an order. Your packaging can display your brand’s flair for […]

eCommerce platform

Best ECommerce Platforms for Your Business

One of first decisions when you start your eCommerce website is the look of your online store. There are a few questions you will have to answer. How much time and money do you have to spend on customizing your […]

same-day shipping service

Is a Same-Day Shipping Service a Smart ECommerce Offer?

The eCommerce world is moving faster than ever before, and many service providers are pressuring shops like yours to offer a same-day shipping service to customers. Unfortunately for eCommerce, that’s often not only unaffordable but unworkable for the vast majority […]

Should ECommerce Use A Direct Fulfillment Center?

Order management and delivery are tough to figure out, especially when you come across terms like direct fulfillment centers for the first time. It can be tricky to remember the difference between fulfillment and distribution or know what’s best for […]

Dimensional Pricing

What is dimensional pricing? Will it be the end of your business?

On January 2, 2015, FedEx and UPS changed how they will price shipments. We detail how this could greatly increase shipping costs for e-retailers and other businesses that use companies like FedEx and UPS to ship their products.

In addition, we breakdown why the carriers are making the change and provide examples of how the new calculations work.

Lastly, we provide possible solutions for companies that would like to reduce their shipping costs and help minimize the impact that could come from dimensional pricing.


  1. Will It Be The End of Your Business? WHAT IS DIMENSIONAL PRICING?
  2. How does pricing work now? The historical way for calculating costs to send a package was based on a very simple method; Carriers use a table that assigns a “base rate” for every combination of weight (1-150 lbs.) and distance (Zones). The heavier the package and/or the farther you ship, the more it costs. Other surcharges and fees are then added to the base rate as they are applicable (E.g. fuel surcharge).
  3. Does it work? Historically, this pricing structure was ideal because transport trucks could use these same variables in their formulas to calculate transportation costs, and therefore determine the profit margin for each truck transporting goods.
  4. What is dimensional pricing? In other words, many of the lightweight packages you ship today could see A BIG INCREASE IN COST!!! Every package you ship will now have two weights – actual weight and dimensional weight. The larger of these two will be used to calculate the cost of your shipment (Height x Width x Length) Dimensional Factor* = Dimensional Weight * The standard Dimensional Factor that UPS and FedEx will use is 166
  5. Why the change? The convenience of online shopping with in-home delivery, has resulted in an increase in the number of lighter weight packages in bulkier boxes being shipped to homes across the world. Consumers now purchase bath robes and teddy bears online! Bigger boxes take up more room in a truck; so less space and less weight = less revenue per truck for the carriers.
  6. How will this affect my shipping cost? 3 lbs. x Zone 8 $9.84 Base (Daily Pickup) Rate 3 lbs. package shipped in a 12” H x 12” W x 18” L box From: Knoxville, TN (ZIP 37923) To: Reno, NV (ZIP 89501) TRADITIONAL (12 x 12 x 18) / 166 = 15.6 lbs. 16 lbs. x Zone 8 $18.86 Base (Daily Pickup) Rate DIMENSIONAL
  7. 3 Questions to Consider What will my margins be if I eat the cost? If I pass this cost on to my customer – how many will I lose? Will I still be in business 1 year from now?
  8. Solutions Take the Air Out Negotiate your dimensional factor Find a partner with negotiating power (E.g. a 3PL)
  9. Take the Air Out Deliberately engineer packaging to remove as much “air” as possible. If additional packaging is added when preparing to ship, educate your packing team on the effects of their decisions. This should be the first step for any company looking to avoid large dimensional weights You might be surprised how much opportunity there is
  10. Negotiate Dimensional Factor Larger Dimensional Factor = Smaller Dimensional Weight = Less Effect on Your Business Must negotiate with each carrier you use (i.e. FedEx and UPS) There are no guaranteed outcomes Shipping Revenue = Power
  11. Find a strategic partner Quality 3PL fulfillment operations minimize effect to their clients Strategic Partners help with these various strategies Examples: Negotiating power with Carriers Package consolidation Packaging engineering
  12. FOR HELP REDUCING COST OF DIMENSIONAL PRICING 800.815.STAG (7824) info@redstagfulfillment.com www.redstagfulfillment.com

We know what it's like searching for a fulfillment partner...

We've been there before! Red Stag Fulfillment was born out of necessity as the sister company to support a fast growing ECommerce business. You can read more about the story of our development here.

Our business is being the successful extension of your business, and a big part of that is providing tools to help you evaluate us, and other fulfillment companies. That's why we openly share our Fulfillment Provider Questionnaire, as a tool for you to use when selecting your fulfillment partner.

Download a blank questionnaire, or the questionnaire with our answers for your own internal use.

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