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If you want a second order, you should.  As an ecommerce seller, your tactile touch points are extremely limited.  You need to make those physical touch points speak volumes about your brand quality.  Here’s 3 tips to make your packaging unboxing worthy.

If you ship small parcels, you need to know about Commercial Plus Cubic

USPS launched Commercial Plus Cubic rates a few years ago. Unfortunately USPS has done a limited job of marketing and educating their commercial customers about who should be using it. After reviewing countless technical specs, pricing charts, and numerous discussions with USPS reps, here’s a breakdown of who should be using this new rate, and why.

Commercial Plus Cubic – Product Summary
• Rates are based on volume in cubic feet, rather than weight. Package weight does not factor into pricing.
• Must weigh less than 20 pounds and measure no more than 0.5 cubic foot.
• Commercial Plus Cubic is a USPS Priority Mail product so you get tracking, insurance, and delivery in 1 to 3 business days.
• Customers must ship over 50,000 packages a year to qualify.

Ideal for small packages – the denser your package, the more you save
• Significant savings compared to traditional Priority Mail for customers shipping small, dense items.

How it works, simplified.
• Determine your cubic volume. Cubic Feet = Length x Width x Height / 1728
• The length, width, and height measurements should be rounded down to the nearest 0.25”.
• There are 5 tiers for cubic pricing:
—  Tier 1 – mailpieces less than .10 cubic foot
—  Tier 2 – mailpieces less than .20 cubic foot
—  Tier 3 – mailpieces less than .30 cubic foot
—  Tier 4 – mailpieces less than .40 cubic foot
—  Tier 5 – mailpieces less than .50 cubic foot

Time for the hidden savings!
• Let’s say you ship a 1 pound parcel in a typical 7″ × 9″ × 3″ carton. 7 × 9 × 3 / 1728 = 0.1094 cubic feet, which would be Tier 2.
• That same shipment packed in a 7” x 9” Small Best Mailer would yield a thickness less than 3”, allowing for Tier 1 classification.
• Shipping a 1 pound 7″ × 9″ × 3″ carton within Zone 1 costs $4.58. By comparison –
—  $4.99 for USPS Commercial Plus Cubic Tier 2
—  $6.65 for USPS Priority Mail
—  $7.64 for UPS Ground
—  $7.96 for FedEx Ground
• If we reduce the thickness of the package from a 3” box to a 1” thick Small Best Mailer, your package drops from Tier 2 down to Tier 1. So now you’ve saved $2.07 compared to traditional USPS Priority Mail. Compared to UPS and FedEx rates you are saving over $3 for a comparable level of service.

Who should be taking advantage of these rates?
Health and beauty product
Small houseware items
Garden supply
Tools
Medical supply
Toys
Books
Small parts in claim shell packaging
Phones, tablets, phone and tablet accessories
Small automotive, industrial, and electronic parts
Clothing
Video games

Rates can be found here under Priority Mail Commercial Plus—Cubic – http://pe.usps.gov/text/dmm300/Notice123.htm

USPS Priority Mail rates can be found here –
http://pe.usps.com/text/dmm300/Notice123.htm#_c031

Until recently, if you were shipping a carton under three cubic feet, none of the carriers cared much about your box size – it was all about weight. Today, the major carriers have wised up – they want full packages so that they can fill trucks and fill planes with higher value shipments. The carriers have adjusted their rate structures to reward small, denser packages, and conversely, penalize shippers for sending oversized, mostly empty boxes.

Small parcel pricing is now based on dimensional weight. DIM weight is a pricing technique which uses an estimated weight calculated from the length, width and height of a package. Both UPS and FedEx rates are based on the higher of a) price by weight, or b) price by cubic volume.

Let’s run through a common shipment I received just last week – a pack of 20 small batteries. I received my Amazon order in a small carton measuring 7.25” x 10.25” x 5.25” weighing under 1 pound. This common Amazon carton is marked “A3” on the box.

Now running through the DIM weight calculations used by both UPS and FedEx, I multiply 7.25” x 10.25” x 5.25” for a total of 390 square inches. Divided by the UPS/FedEx divisor of 139 I get a DIM weight of 2.81 pounds, which is rounded up to 3 pounds. Since the 3 pound DIM weight is greater than the under 1 pound actual weight, the package ships at the 3 pound rate. Shipped from Kentucky to a residential address (surcharge), the UPS Ground rate would be $13.71. Shipped FedEx Home Delivery, the rate would be $10.41.

Now here’s where things get interesting. The box of batteries I received was 95% empty! Had the packet of batteries been packaged inside a small Best Mailer, measuring 7” x 9” x 1” thick, the UPS Ground rate would be $12.00, a 1 pound rate, or via FedEx for $9.42.

Peeling that onion a bit further, had the Amazon A3 carton been shipped via USPS Commercial Plus Cubic the rate would be $5.22. If they shrank down their DIM size using a Best Mailer the rate would be $4.58.  Rates for Priority Mail Commercial Plus—Cubic can be found here.  I wrote about this new rate category a few weeks ago.  Read the details here.

One step further – it turns out Amazon shipped my package using the USPS Lightweight Parcel rate designed for packages under 16 ounces. My battery box was 13 ounces. Depending on how finely Amazon sorted shipments, the rate they paid would have been between in the $3 – $4 range. Had Amazon downsized their over-sized box for a Best Mailer, package weight would have dropped from 13 ounces down to 4 ounces, saving them an additional $0.79.  Lightweight Parcel rates can be found here.  Further product info here and here.  You can read my assessment of this new USPS product here.

So what’s the take away from this packaging rate bonanza?

1 – If you are shipping small items, under half a square foot, that weigh over 1 pound, make your packaging as small as possible to take advantage of Commercial Plus Cubic.  Pricing is based on cubic inches only – weight is irrelevant, so make the most of it.

2 – If you are shipping small items under 1 pound, take advantage of Lightweight Parcels.  The rate is per ounce – cubic inches are irrelevant, so make your packaging as light as possible.

New carrier rates for small parcel shippers are forcing packaging changes.  Until recently, packages under 3 cubic ft. were charged by weight alone.  No longer.  USPS, UPS and FedEx apply DIM weight to all parcels, big or small.

What is DIM, you ask?

DIM Weight = Length x Height x Width (cubic volume) / Volumetric Divisor

For example, a 7” x 9” x 5” parcel = 315 cubic inches.

FedEx volumetric divisor is 166 x 315” = 1.897 DIM weight.

UPS volumetric divisor is 139 x 315” = 2.26 DIM weight.

Both UPS and FedEx rates are based on the higher of a)price by weight, or b)price by DIM weight.  Based on DIM weight, FedEx and UPS are going to charge a 2 lbs. and 3 lbs. rate, respectively, even if your package only weighs 1 lbs.  

USPS Commercial Plus Cubic is based on cubic volume alone, no weight.   For heavy weight, small parcels under ½ cubic foot, there is dramatic savings to be had by utilizing USPS Commercial Plus Cubic.

Cost cutter #1 - heavy parcels under 1/2 cubic foot should all ship USPS Commercial Plus Cubic.

If you have a 7" x 9" x 5" with a total cubic volume of 315" and weighing 1.5 pounds, shipping from Lexington, KY to a residential address in New York, USPS Commercial Plus Cubic would cost $5.28.  That same package, shipped via FedEx or would give you a DIM weight of 2 lbs. and 3 lbs. respectively, with shipping rates exceeding $10.

In addition to high carrier rates, shippers also need to account for the cost of assembling the carton, void fill and taping the carton closed.

Cost cutter #2 - If you are using USPS Commercial Plus Cubic rates, make your package as small as possible.

Here's where Best Mailer comes into play.  Downsizing the carton to a Best Mailer slashes the DIM weight of the package.  At 7” x 9” x 0.75”, we cut the cubic volume to 47.25” cubic, which qualifies this package for the lowest available USPS Commercial Plus Cubic rate of $4.74.  

If you are shipping parcels under 1 pound, read our story on USPS Lightweight Parcels.

It is time to take control of your brand, make an impression, and make it memorable.

eCommerce packaging is 99% boring, brown, and without thought.  We understand - you’re focused on your product, on your Facebook / Instagram / Pinterest branding game, your click throughs, abandoned shopping carts and Adwords. 

At Best Mailer, we can help you create customized packaging in small batches on a smaller budget.  Here’s our quick guide to beating the big guys.

Inserts!  Enclose color printed post-card with your shipment.  Discount promo-codes are a are a great way to motivate first time customers to order again or to promote new products to your best customers.  A few common discounts include -

• Free Shipping On Your Next Order
• $10 Credit Towards Your Next Order
• Order by December 1st and take 25% Off

Thank-You Cards and Personal Notes make your customers feel appreciated.  This simple gesture tells your customers that you appreciate their business, and helps you stand out from the crowd.  Combined with a promo-code, you're bound to deepen your customer relationship and increase customer loyalty.  A simple handwritten thank-you card with your color logo printed on it can go a long way.  

Go Old School - Get Letterhead.  This one is simple.  Order color printed letterhead with your logo on a high quality paper.  Use this paper to print your invoice / packing slip to make an inexpensive but meaningful impression on your customers.

For Inserts, thank you cards, and letterhead, we like Moo, Vista Print, and Tiny Prints.  These printers make it easy to order small quantities and grow fast.

Parcel Select Lightweight is an excellent alternative to Priority Mail as it allows customers to ship lightweight packages from 3.5 to 16 ounces at a per ounce rate, nearly half the price of USPS, UPS, and FedEx grounds services.

Best Mailers shipped via Parcel Select Lightweight are a perfect combo of efficient packaging and low cost delivery – ideal for many e-commerce applications.

Parcel Select Lightweight – simplified
• Parcel Select Lightweight offers per ounce rates, far cheaper than other parcel rates offered in pound increments.
• Parcel Select is designed for companies shipping over 50,000 packages per year.
• Packages must weigh 3.5 to 16 ounces.
• Packages must be presorted to Destination Delivery Unit (DDU), Sectional Center Facility (SCF) or Network Distribution Center (NDC).
• Price is determined by distance and weight of the mailpiece – size does not matter.
• Delivered in 2-9 days.

Why you need it!
eCommerce shippers typically ship packages with USPS Priority Mail, UPS Ground or FedEx Ground. For shipments under 16 ounces, these services are likely unnecessary.
USPS, UPS and FedEx rates for 1 pound start at $5 – $7 and go up depending on how far your package travels. Depending on how deeply a shipper is able to sort their shipments, Parcel Select Lightweight yields rates range from $1.38 to $3.20 – that’s less than half.

If you are shipping over 50k packages per year, and your customers will accept delivery in 2 – 9 days, you need to get on board with Parcel Select Lightweight.

Rates can be found here.  Further product info here and here.

Who should be taking advantage of these rates?
Health and beauty product
Small houseware items
Garden supply
Tools
Medical supply
Toys
Books
Small parts in claim shell packaging
Phones, tablets, phone and tablet accessories
Small automotive, industrial, and electronic parts
Clothing
Video games

If you are shipping, heavier parcels over 1 pound, you need to know about USPS Commercial Plus Cubic.