Dotcom distribution co-founder and CEO Maria Haggerty told Multichannel Merchant at IRCE 2015 last week that while dimensional weight pricing changes from FedEx and UPS are a big deal to her and her retail customers, apparently not everyone has gotten the memo.
“I see how (DIM weight pricing) has certainly changed the way we’re do things with our clients in our world,” said Haggerty, whose company helps retailers like Petflow.com and Ashley Stewart optimize their parcel shipping. “But as a consumer, I’m not seen same thing. Last week I ordered a little package of socks from a pretty big retailer, and it came in a big box with air pillows. Why would you put air pillows in a box of socks? I don’t think (the impact of DIM) has really trickled through entire industry. People are still being very wasteful.”
Haggerty also said she was surprised more retail shippers didn’t radically alter their parcel strategy before the new DIM pricing went into effect at the beginning of the year. Multichannel Merchant has heard reports of financial executives balking at Q1 retail freight bills that blew out the budget due to the DIM changes.
“Quite honestly I’m surprised they didn’t see that in their first bill from the big carriers – that was such a huge increase,” she said. “Your average cost per package could have gone up by more than $2 from Dec. 31 to Jan. 1. So it’s a very material change.”