We’re A Third Party Fulfillment Provider That Approaches Things A Little Differently.

Our Business Is Being The Successful Extension Of Your Business.

Dots bar icon

Enter your email below and we’ll keep you up to date with the latest industry news, trends, and our growth, delivered right to your inbox.

Our Business Is Being The Successful Extension Of Your Business

How Long Does Switching Fulfillment Companies Take?

Dots bar icon

Switching fulfillment companies is a pain point that most eCommerce companies don’t take lightly. Changing logistics operations or adding a new 3PL partner costs staff time and freight and can lead to delays in order processing if not done correctly. […]

By: Geoff Whiting
Read More
pick and pack fulfillment
ecommerce shipping partner
By: Geoff Whiting

ECommerce Shipping: 5 Questions to Focus Your Operations

Your eCommerce shipping and expertise can make or break your business. The logistics knowledge needed to manage inventory, plan a warehouse, and fulfill orders directly impacts your most significant investments and needed revenue streams. When failures persist, a poor eCommerce […]

Read More
ltl freight shipping
By: Jake Rheude

What Are Logistics Services?

Logistics services are a step beyond third-party logistics (3PL). They are considered 4PL or 7PL, which combines 4PL with 3PL eCommerce fulfillment. Logistics are an essential part of your supply chain management. Fourth-party logistics can move the needle on your […]

Read More
Dots bar icon

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

Don't Just Take Our Word For It

See What Our Partners Have To Say

"RSF has been part of our eCommerce journey since we sold our first carton of oatmilk through the internet and we have grown together."
Homestead Brands
(Partner Page)
Rating icon
My company cannot run without stellar customer service. We can't ship our big, heavy D2C packages properly without it, and we don't have to worry about anything with RSF. That's what it boils down to.
Read the Case Study
Pop-A-Shot
(Partner Page)
Rating icon
I never envisioned that we would have this much growth – and they have grown with us seamlessly. As a partner, I take them for granted now. When you're a company as small as is, that's vital. That reliability – it's one less thing to worry about.
Read the Case Study
Dots bar icon

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.

Download pdf icon

Blank
Questionnaire

Download
Download pdf icon

Questionnaire
With Our Answers

Download
Dots bar icon

Getting Started Is Simple

Send Us Your Stuff

Send Us
Your Stuff

Send Us Your Orders

Send Us
Your Orders

Give Us 30 Days To Impress You

Give Us 30 Days
To Impress You

Take The First Step
Start Your No-Obligation
30-Day Risk-Free Trial

Ready To Get Started? Let's Go!