Michelle Ruhland
7 mins read
10 mins read
Mikaeel Dewji brings over a decade of logistics expertise and 15 years of customer service experience. As an eCommerce and shipping consultant at eShipper, he specializes in LTL, FTL, small parcel, and cross-border solutions, uncovering cost savings and operational efficiencies while helping brands scale with confidence.
Do you feel that, despite getting the best base rates from logistics solution providers, your ecommerce shipping costs still escalate through the roof? Freight shipping costs are confusing, and most businesses have no clue how dimensional (DIM) weight pricing works.
This lack of clarity about the concept is the main reason why many businesses overpay on every shipment. But the good news is this can be easily avoided. In this blog, we will address three important pain points that most eCommerce companies face with DIM weight pricing.
| Key Takeaways: What is DIM weight, and how does it differ from actual weight?How is DIM weight calculated?How to reduce DIM weight to stop overpaying on every shipment?Why partnering with eShipper is beneficial for eCommerce companies? |
Are you paying for the “air” trapped within your package? Dive deep into your shipping costs and you will find this to be a silent multiplier. Let’s explore.
Most logistics and shipping service providers calculate the cost of shipping packages using their dimensional weight.
DIM Weight VS Actual Weight
Dimensional weight, or DIM weight, refers to the volumetric weight of your shipment. Here, shippers calculate the cost of your package based on its volume or the space it occupies. This differs from the package's actual physical weight, which is measured in pounds. That is why a lightweight but bulky item like paper towels can be more expensive to ship than a laptop.
Effectively, carriers use DIM weight pricing:
Traditionally, when packages were charged based on their actual weight, shipping companies lost potential revenue when shipping large but lightweight packages.
Large packaging is neither environmentally sustainable nor profitable for brands and carriers. Oversized packaging can double shipping costs, compounding DIM charges over thousands of orders. As a result, margins shrink quietly, without any obvious warning.
Additionally, the rise of eCommerce has increased the popularity of same-day and express shipping. Typically, air freight is calculated based on the weight-to-space ratio. So carrier companies must account for both package weight and volume when calculating shipping costs to cover their expenses, yet stay competitive.
Using dimensional shipping weight benefits logistics solution providers by ensuring they are compensated for the space a package consumes. This reduces shipping costs by enabling carriers to maximize transportation capacity and reduce inefficiencies.
| Recommended Reading: To know more about building a successful shipping strategy, read our blog “Dimensional Weight and Other Elements: Factors to Consider For Your Shipping Strategy in 2026” |
How do you prevent DIM weight packaging from inflating your shipping costs? The answer lies in understanding how the DIM weight is calculated. The formula commonly used by most carriers and shippers is:
DIM Weight = (Length × Width × Height) ÷ DIM Divisor
While length, width, and height refer to package dimensions, the DIM divisor varies by carrier.
It is a multiplier that converts package volume to its weight equivalent. It represents the “expected” ratio of a package's volume (in cubic inches) to its weight.
Simply speaking, the DIM divisor is the number carriers use to convert package volume into billable weight. The lower the DIM factor, the higher the DIM weight, and the higher the DIM factor, the lower the corresponding DIM weight.
For most domestic and international shipping requirements, carriers either use 139 or 166 as the DIM divisor. But multi-carrier platforms like eShipper calculate the billable weight based on the DIM divisor associated with the carrier and service level selected for a shipment.
Remember, carriers will calculate both the actual weight and the volumetric weight of a package. Your shipping cost will depend on whichever is higher.
Suppose you have to ship two products in the same 12x12x12 box. While the first box contains 5 pounds of ping pong balls, the other contains 15 pounds of books. Using 139 as the DIM divisor, let’s calculate how much both packages will cost you.
Scenario 1:
The DIM weight of the ping-pong balls will be (12 x 12 x 12)/139, or 12 pounds. However, its actual weight is only 5 pounds. The carrier will calculate your shipping cost based on the DIM weight, which is higher than the actual weight because the volumetric capacity is higher.
Scenario 2:
Let's calculate the DIM weight for 15 pounds of books. The DIM weight here will also be 12 pounds since we are using a box with the same dimensions. But your fulfillment carrier will calculate the shipping cost based on the actual weight here, as it is higher than the dimensional shipping weight.
The explanation:
In the first instance, you are paying for the air or packaging materials trapped inside the box along with the product. This is increasing your shipping cost. But in the second instance, you are paying only for what you are shipping.
Let us understand this better by taking a few more examples.
| Product Type | Actual Weight (kg) | Package Dimensions (cm) | DIM Weight (kg) | Chargeable Weight (kg) | Notes |
| Small Electronics | 1 | 30 x 20 x 15 | 1.8 | 1.8 | DIM weight higher than actual weight, charged based on DIM. |
| Clothing Item | 0.5 | 40 x 35 x 20 | 11.2 | 11.2 | Lightweight but bulky; DIM dominates cost. |
| Books (Dense) | 5 | 30 x 25 x 15 | 2.8 | 5 | Actual weight higher than DIM, charged on actual weight. |
| Home Decor Item | 2 | 60 x 40 x 30 | 28.8 | 28.8 | Bulky but light; DIM weight greatly increases shipping cost. |
| Small Appliance | 7 | 50 x 40 x 35 | 29.2 | 29.2 | DIM weight drives cost; consider repacking or alternate carriers. |
Once you understand this difference in package pricing, you can implement ways to reduce your shipping costs and increase your revenue. We will explore more about them in the next section.
For eCommerce companies, the dimensional weight becomes especially expensive in these common scenarios:
While DIM weight pricing is a reality that eCommerce companies must adapt to, there are several strategies they can implement to minimize its impact. Some effective shipping cost reduction strategies that help neutralize the financial impact of DIM weight include:
Carefully select the packaging you want to use. Not everything needs to be shipped in large boxes. This will unnecessarily increase your shipping costs. But if you select packaging that closely matches the product's dimensions, you can ship without wasting space, lowering your shipping costs in the process. Another way to win the package size vs weight shipping debate is to select the packaging material very carefully. For example, if you are shipping a fragile artifact, using foam inserts and air pillows will protect your product without increasing waste space.
For irregularly shaped and sized packages, you can also opt for custom packaging. This can be a very smart move for reducing shipping costs as it greatly reduces empty space within the box, lowering the DIM weight price.
Using Poly Mailers is an excellent alternative to using boxes, especially if you are shipping small, soft, and non-fragile products. They are lightweight and conform to the product’s shape, reducing the dimensional footprint and final shipping cost.
If you regularly ship multiple items, then this is an effective strategy to adopt. Here, instead of sending items one by one, you combine multiple items to spread the DIM weight across all products, reducing the overall shipping cost.
Many logistics and shipping solution providers offer volume discounts in the form of reduced dimensional weight charges. Availing of such discounts will result in better shipping rates for your shipment. These discounts become extra beneficial when shipping in bulk.
As mentioned earlier, different carriers use different criteria to calculate the DIM factor. This can impact your DIM weight with different carriers billing different pounds for the same item. Therefore, before you finalize your choice of shipping carrier, you must use the dimensional weight calculators provided by the carriers on their websites to select the one offering optimal rates.
The 4D boxing algorithm, a smart, built-in capability, lies at the core of eShipper’s automated, unified shipping platform. It benefits eCommerce companies by:
You can reduce your shipping costs significantly here because the 4D boxing algorithm leverages data analytics to predict the optimal packaging. In addition to improving your revenue, this helps you meet your sustainability goals by reducing your carbon footprint.
As a shipping and fulfillment solutions provider, eShipper offers other benefits too. With multiple carrier options present on a single dashboard, you can choose the one that best suits your needs. Its auto and batch shipping capabilities further help minimize the DIM weight by consolidating your items.
So, if you are looking for a shipping and logistics firm to streamline your eCommerce deliveries, choose eShipper because it ticks all the boxes for your shipping cost reduction strategies.
| Submit the form to find out how much you could save on dimensional weight charges with eShipper. Get a customized shipping quote today. |
Dimensional weight pricing is here to stay. It impacts every shipment. By understanding how air freight dimensional weight works, you can substantially reduce your shipping costs through smarter packaging and smarter tools.
Key takeaways for reducing DIM weight pricing include:
By approaching dimensional weight strategically you can also improve shipping efficiency, reduce your carbon footprint and enhance the overall performance of your supply chain. You can’t eliminate dimensional weight pricing, but you can stop overpaying for it. So, make it an advantage by understanding the logic behind its calculation.
FAQs
What is dimensional weight pricing, and how is it calculated?
Dimensional weight pricing is a method for calculating the shipping cost of a package. This pricing method calculates pricing based on the volumetric weight rather than the actual weight. The formula used to calculate the DIM weight is: (length x width x height)/DIM Divisor.
Here, the DIM divisor depends on the carriers and is usually either 139 or 166. The shipping cost is calculated on the DIM weight or the actual weight, whichever is higher.
Why do carriers use dimensional weight pricing instead of actual weight?
Calculating the shipping cost on the actual weight does not justify the costs incurred by the shipping and logistics firms. DIM weight pricing helps compensate for the space used by the package in the cargo hold, transporting vehicle, or shipping container. Calculating the cost based on the actual weight will make lightweight but large items cost more because they occupy more space. This will ultimately impact the profitability of the shipper. DIM weight pricing makes shipping profitable for the carrier.
What is the standard DIM divisor used by major carriers in Canada and the US?
The standard DIM divisor used by major carriers in Canada and the US is either 139 or 166. This divisor varies based on the factors that carriers take into consideration to arrive at the DIM divisor.
How can ecommerce brands reduce dimensional weight charges on every shipment?
eCommerce brands can reduce dimensional weight charges by increasing packaging efficiency and using customized packaging or poly mailers. Additionally, consolidating multiple shipments in one package also helps reduce DIM weight pricing.
Does dimensional weight pricing apply to all shipment types?
DIM weight pricing is particularly useful when calculating the costs for large but lightweight packages.DIM weight pricing commonly applies to parcel shipments and many air shipments, though policies vary by carrier and service type. Generally, for freight shipments, small packages and heavyweight shipments, the actual weight is considered.
