Shipping Software

What's New In Shipping Software Today?

FedEx and UPS Shipping: New 2015 Dimensional Weight Changes

Posted on Mon, Jan 19, 2015 @ 04:57 PM

What is dimensional (DIM) weight and how are these new changes going to affect businesses and their shipments?

Dimensional (DIM) weight billing is calculated by comparing the actual weight to the package volume.

  • UPS:  Prior to 12/29/14 UPS applied the (DIM) weight calculation to all Air packages and only to Ground packages larger than three cubic feet.  Now with the new (DIM) weight calculation in 2015, UPS will apply the new (DIM) weight calculation to all Air and ALL Ground packages.
  • FedEx:  Prior to 1/5/2015 FedEx applied the (DIM) weight billing to all Air packages and, just like UPS, only Ground packages larger than three cubic feet. Now they are charging the (DIM) weight fee to both Air and Ground packages.
  • USPS:  Priority mail charges have not changed and remain the same in 2015. The (DIM) weight calculation only applies to packages larger than one cubic foot going to zones 5-9, where the Balloon rate applies for packages going to zones 1-4.
Moving forward DIM Weight charges will be applied as follows:
DIM Weight Charges

If a shipper is shipping a women's shoulder bag, for example, with dimensions of 19" x 15" x 5" and the actual weight of the women's shoulder bag is 2 lbs. the (DIM) weight is actually 9 lbs. We calculate the (DIM) weight in this scenario by dividing the shipment volume of 1,425 by 166 which equals 8.58 and rounding up it is 9 lbs.  In this scenario FedEx/UPS would have charged $8.51 in the past, now with the new changes they will be charging $10.89 so the average cost increases 27.9%.  If the shipper ships 50 pkgs/day the increase in monthly cost in 2015 is $2,377.14.

Tips to Identify Savings

Start evaluating your shipping mix today
  • Identify common package sizes and weights
    • Pay special attention to medium and large lightweight items
    • Determine if dimensional weights will apply
    • Calculate the potential impact, including surcharges
  • Look for opportunities to pack more efficiently without risking damage to merchandise
  • Define commonly used box dimensions for ease of processing
  • Utilize settings to require input of this critical data!
  • Take advantage of ship via rules to automatically determine "best way"
  • Get re-familiar with carrier contracts and work with your carrier account representative - analyze minimum charges, DIM factor and discounts
  • Consider regional carriers such as OnTrac and Spee-Dee Delivery
  • Leverage new USPS Priority Mail prices where it makes sense for your business
  • Look at USPS Flat Rate Packaging & Cubic Volume Rates
What is needed to support USPS DIM weight and cubic volume discounts?
  • Provide LxWxH in StarShip
  • Select Flat Rate Packaging
  • Do you meet minimum volume requirements for cubic pricing?

Dealing with the new dimensional weight rules can be time consuming and costly with certain types of merchandise. Please give us a call if you would like us to ease the struggle via our automated shipping solutions - 800-462-4016 or email us! 

Tags: FedEx, UPS, USPS, Endicia

USPS rate changes planned for September 7, 2014

Posted on Fri, Sep 05, 2014 @ 04:29 PM

The United States Postal Service recently announced a rate cut ahead of the holiday season.  This latest rate change focused mostly on the Priority mail shipments, with up to 58% off certain packages. While the Post Office has always been an economical way to ship small packages, now even heavy packages are being discounted.

With rate decreases across many weights and zones, shippers can save an average of 42% over private carrier rates and up to 35% over previous Priority Mail rates, based on Commercial Plus pricing. (source). The rate decrease will especially be beneficial for e-commerce shippers that want to continue to offer free shipping on their products.

The Postal Service won approval from its regulators in August to lower prices by as much as 58% on certain Priority Mail packages for customers shipping at least 50,000 parcels a year (source). This of course aggravates shipping industry giants UPS and FedEx who have also been in the news with their plans to change their shipping rating to dimensional based pricing instead of just weight alone.

So what does this mean for StarShip users? Starting September 7, 2014, new USPS rates will be immediately available with no software update needed. StarShip customers using Endicia already automatically qualify for Commercial Based pricing for applicable Competitive mail classes for even more savings.  As part of the rate change, packages weighing 5 lbs. or less, Commercial Base rates (Zones 1-8) are decreasing an average of -0.3% or -$0.03 per piece.

For more information on the Endicia module, please visit our website at http://www.vtechnologies.com/shipping-software-usps-endicia/

Tags: Shipping Software, USPS, QuickBooks, Endicia

V-Technologies visits the Windy City for MAPADOC CONNECTIONS Customer Conference

Posted on Thu, Oct 17, 2013 @ 01:11 PM

V-Technologies is pleased to be part of the first annual MAPADOC CONNECTIONS Customer Conference this October 17 and 18th in Chicago! This user conference starts Thursday and wraps up Friday afternoon.

This conference explores such topics as Sage Software and 3rd Party Solutions in the cloud, Warehouse Management, and integrated shipping solutions. The conference also offers a vendor expo of other 3rd party add-ons. MAPADOC Customers, Channel Partners, and Strategic Partners have been invited to attend.

MAPADOC by SWK Technologies is an  Electronic Data Interchange (EDI) software created for Sage 100 ERP, Sage 500 ERP and Sage ERP X3 users to easily communicate to trading partners and reduce double entry.

Please look for silver sponsor V-Technologies at MAPADOC CONNECTIONS. At our booth you’ll see the latest in shipping automation and how StarShip can assist with your EDI transactions!

V-Technologies, LLC is an established and growing technology company specializing in the design, development and support of integrated shipping software solutions. Our flagship products, StarShip and ShipGear, provide connectors to ERP, accounting and business applications to automate shipping, accounting and customer service.  Our shipping software interfaces with solutions such as Sage 100 ERP (formerly MAS 90 and MAS 200), Sage 500 ERP (formerly MAS 500), and many more. Our shipping software solutions are certified with the UPS Ready, FedEx Compatible and eBay compatible programs. 

Tags: Shipping Software, EDI, Sage shipping software, USPS, MADAPOC, StarShip

Refund changes planned for the Endicia module

Posted on Tue, Sep 17, 2013 @ 11:59 AM

 

New changes took effect on Endicia website August 26, 2013

1. eRefund Request timeline has changed

The USPS has relaxed their rules around accepting requests for electronic refund requests.  Traditionally, customers have been allowed only 10 days from the date of printing to request an eRefund.  Anything beyond that, they were forced to make a direct appeal to the USPS for a refund.

Endicia has rolled out changes to their website that will allow customers to request eRefunds for up to 30 days after creating the label request.  They also plan to have a fall release the will extend this functionality to the Endicia Label Server allowing late refunds to flow through StarShip. 

The USPS will still be waiting the full 14 days following postmark prior to granting a refund, just like before.  Since it is now possible to create a refund request after this 14 day waiting period and if there has been no scan event, in theory the request is granted immediately. However, there will be a lag time of 3 to 4 days due to processing on both sides for this refund to take effect and impact your balance.

 

2. SCAN Form acceptance scans no longer invalidate a refund request

Historically, the presence of a SCAN form acceptance scan event would automatically reject a refund request.  The USPS made changes to their side that will no longer reject a request based on this type of scan event.  This means that customers who use the SCAN form can now request an eRefund after the SCAN Form has been scanned by the USPS. 

We’ll keep you posted as to when Endicia adds this functionality to the Label Server for availability in StarShip.  In the meantime, you can log into your account page at endicia.com to submit a Refund Request for any label that exceeds the former 10 day rule.

Tags: Shipping Software, USPS, Endicia