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Volumetric weight: what is it and how can it save your e-commerce business money?

Photo of a pallet of boxes with a tape measure and tape dispenser resting on top, to represent measuring boxes in order to calculate volumetric weight for shipping

Understanding the concept of volumetric weight

Before we can delve into the intricacies of volumetric weight, it’s important to understand the concept itself. Volumetric weight, also known as dimensional weight, is a calculation used by shipping companies to determine the cost of shipping based on the size of a package, rather than just its actual weight.

This calculation takes into account the package’s dimensions, such as its length, width, and height, to determine its overall volumetric weight. In simple terms, it helps shipping companies account for the space that a package occupies in their vehicles or warehouses.

The science behind volumetric weight

Volumetric weight is based on the principle that empty space should also be considered when determining shipping costs. This is because large, lightweight packages consume more space and thus require more resources to handle and transport.

To visualise this concept, imagine trying to transport a large, empty cardboard box versus a smaller box filled with heavy items. The larger box takes up more room and requires more effort to handle, even though its actual weight may be relatively low. Taking the volume of the package into account allows shipping companies to charge fees that reflect the resources required to transport it.

How is volumetric weight calculated?

To calculate the volumetric weight of a package, shipping companies use a simple formula. They multiply the package’s length, width, and height in centimeters and divide the result by a predetermined volumetric divisor (sometimes called a dimensional divisor or DIM factor).

The volumetric divisor varies across different shipping companies and is usually adjusted periodically to reflect changes in industry standards. It is essential to check with your shipping provider to ensure you are using the correct volumetric divisor for accurate calculations.

(L x W x H) / Volumetric divisor = Volumetric Weight

For example, DPD calculate it as:

Length (cm) x Width (cm) x Height (cm)/5,000 (cm³/kg).

The impact of volumetric weight on shipping costs

Now that we have a good grasp of how volumetric weight is calculated, let’s explore its impact on shipping costs. Understanding this impact can help you make informed decisions that save your e-commerce business valuable resources.

Why does volumetric weight matter in shipping?

Volumetric weight plays a crucial role in determining the cost of shipping because it allows shipping companies to account for the space a package occupies. By considering both the actual weight and the dimensions of a package, shipping companies ensure that they are fairly compensated for the resources needed to transport it. This is particularly important when dealing with large, lightweight items that may have a low actual weight but take up a significant amount of space.

Volumetric weight vs actual weight: What’s the difference?

It’s important to understand the difference between volumetric weight and actual weight. Actual weight refers to the weight of the package in kilograms or pounds, while volumetric weight takes into account the package’s dimensions. When shipping a package, the shipping company will compare the actual weight and the volumetric weight and charge you based on whichever is higher. This means that if a package is lightweight but takes up a lot of space, you may end up paying more for shipping than you would expect based solely on its actual weight.

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