Package and Parcel Profits to Pick Up - Midwest Direct

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October 9, 2014

Package and Parcel Profits to Pick Up

Sorry for the alliteration there, but the new year is going to bring big changes in package delivery!

UPS and FedEx will begin using dimensional-based pricing in 2015. Dimensional weight is a billing method that is a calculation of a theoretical weight of a package rather than an actual weight. As a result, a higher billable weight will apply to all packages where the dimensional weight exceeds the actual weight.

The US Postal Service is going against the grain and will not charge dimensional weights. And now it is going on the offensive.

It recently began a clever direct marketing campaign targeting US businesses and shows how a one-foot cube box that holds one pound of merchandise can be a 11-pound box, “If you use the wrong shipping company.” Hmmmm, wonder who they mean? 

 

package

The USPS has previously declared that packages “are the future.” It has seen a steady 8% growth in parcels, and it believes that package growth will offset the losses due to decreasing First Class revenue.

The bottom line: it’s time to review your parcel strategy for 2015.

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