{"id":1161,"date":"2021-09-17T14:52:22","date_gmt":"2021-09-17T19:52:22","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/billable-weight\/"},"modified":"2025-12-25T20:27:57","modified_gmt":"2025-12-25T20:27:57","slug":"billable-weight","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/billable-weight\/","title":{"rendered":"Billable Weight: What Is It, Formula, & How to Reduce Future Shipping Costs"},"content":{"rendered":"\n

Table of Contents<\/p>

** Minutes<\/p><\/div><\/div>\n

What is billable weight?<\/a><\/p>\n\n\n\n

The history of billable weight<\/a><\/p>\n\n\n\n

How is billable weight calculated?<\/a><\/p>\n\n\n\n

Billable weight calculation examples<\/a><\/p>\n\n\n\n

3 ways you can reduce shipping costs (+ better packaging options)<\/a><\/p>\n\n\n\n

How ShipBob works to optimise your shipments<\/a><\/p>\n\n\n\n

Billable weight FAQs<\/a><\/p>\n\n\n\n

<\/a><\/p>\n<\/div>\n\n\n\n

<\/span>

Key Takeaways<\/h2><\/span><\/div>
\n

1<\/p><\/div>

Billable weight is a shipping pricing method that considers both the dimensional weight and actual weight of a package, using the greater of the two to determine shipping costs.<\/p><\/div><\/div>\n\n\n\n

2<\/p><\/div>

Dimensional weight is calculated by multiplying the package’s length, width, and height, then dividing by a DIM divisor, while actual weight is measured using a scale.<\/p><\/div><\/div>\n\n\n\n

3<\/p><\/div>

To reduce shipping costs, businesses can optimise packaging by using poly mailers instead of boxes and considering ships in own container (SIOC) packaging.<\/p><\/div><\/div>\n\n\n\n

4<\/p><\/div>

Partnering with a third-party logistics provider like ShipBob can help businesses optimise shipping costs through custom packaging solutions and access to discounted courier rates.<\/p><\/div><\/div>\n<\/div><\/div>\n\n\n\n

Package the items, weigh your shipment, and get a rate.<\/p>\n\n\n\n

Calculating shipping costs is easy, right?<\/p>\n\n\n\n

If you\u2019re familiar with shipping orders, you know it\u2019s a bit more complex than that.<\/span><\/p>\n\n\n\n

If you are new to ecommerce, you might think that your shipping costs always depend on the actual weight of the shipment (outside of <\/span>flat rate shipping<\/span><\/a>). However, the actual weight is only one part of the equation as far as understanding what your shipping cost will be.<\/span><\/p>\n\n\n\n

In addition to actual weight, shipping couriers also take into account what\u2019s known as \u201cbillable weight,\u201d which relies on a few other factors, including dimensional weight or the dimensions of your package. <\/span><\/p>\n\n\n\n

In this article, learn what billable weight is, how it\u2019s calculated, and what you need to know to optimise shipping costs. <\/span><\/p>\n\n\n\n

What is billable weight?<\/h2>\n\n\n\n

Billable weight<\/a> is a pricing technique used by couriers to calculate shipping rates per package, taking<\/span> into account both dimensional weight<\/a> (the length, width, and height of a package) and the actual weight of the shipment.<\/p>\n\n\n\n

Whichever weight is greater will be used as the billable weight for your shipment, leading to the actual shipping rate. <\/span><\/p>\n\n\n\n

The history of billable weight<\/h2>\n\n\n\n

Until 2015, couriers used a package\u2019s actual weight and shipping distance to calculate its shipping costs<\/a>. <\/span><\/p>\n\n\n\n

After <\/span>realizing this cost model didn\u2019t make sense for lightweight packages that took up cargo space and reduced the courier\u2019s capacity, they transitioned to billable weight for shipments 16 ounces or greater.<\/span><\/p>\n\n\n\n

A common problem that couriers also faced was that shippers didn\u2019t optimise their packaging for small items because they weren\u2019t being charged for their package dimensions.<\/span><\/p>\n\n\n\n

That\u2019s when couriers decided to add the DIM factor (the value used to calculate the dimensional weight of an object) in calculating shipping costs. Dimensional weight calculations enable couriers to take into account the package\u2019s weight and its density (amount of space) as well.<\/span><\/p>\n\n\n\n

How is billable weight calculated?<\/h2>\n\n\n\n

To calculate billable weight, you will need both the actual weight of the shipment along with the dimensions of the package in inches.<\/p>\n\n\n\n

Billable weight is calculated as follows:<\/span><\/p>\n\n\n\n

\n

(Length x Width x Height) \/ DIM Divisor<\/p>\n<\/blockquote>\n\n\n\n

To truly understand how billable weight works, let\u2019s dive into how dimensional weight and actual weight is calculated.<\/p>\n\n\n\n

How dimensional weight works<\/h3>\n\n\n\n

Dimensional weight is calculated by measuring the cubic size of a package and dividing it by a dimensional factor, commonly known as a DIM divisor.<\/span><\/p>\n\n\n\n

Here\u2019s the step-by-step process to calculate a package\u2019s dimensional weight<\/a>:<\/span><\/p>\n\n\n\n

  1. Measure the length, width, and height of a package, using the longest point on each side.<\/span><\/li>
  2. Next, multiply those dimensions to get the cubic size of the package.<\/span><\/li>
  3. Divide the cubic size by your courier’s DIM divisor. <\/span><\/li><\/ol>\n\n\n\n

    Note: FedEx\u2019s DIM divisor<\/a> is <\/span>139 for all services<\/span>. UPS\u2019s DIM divisor<\/a> is <\/span>139 for daily packages and 166 for retail packages<\/span>. USPS\u2019s DIM divisor<\/a> is 166.<\/span><\/p>\n\n\n\n

    \"\"<\/p>\n\n\n\n

    How actual weight works<\/strong><\/h3>\n\n\n\n

    Actual weight of the package is calculated by placing a package on a scale, recording the weight of the package, and then rounding that number to the next whole pound. <\/span><\/p>\n\n\n\n

    Billable weight calculation examples<\/h2>\n\n\n\n

    As you get familiar with the concept of billable weight, it may be helpful to see a few examples of billable weight calculations in practice.<\/span><\/p>\n\n\n\n

    Example #1: Stuffed Teddy Bear<\/h3>\n\n\n\n

    Let\u2019s take the example of a large stuffed teddy bear, which is a lightweight item that has long dimensions. We\u2019ll also use the DIM divisor 139 to calculate the DIM factor of this particular shipment. <\/span><\/p>\n\n\n\n

    Length <\/b><\/td>15.07 inches<\/span><\/td><\/tr>
    Width <\/b><\/td>10.31 inches<\/span><\/td><\/tr>
    Height <\/b><\/td>7.28 inches<\/span><\/td><\/tr>
    Dimensional Weight<\/b> <\/span><\/td>(15.07 x 10.31 x 7.28) \/ 139 = 8.1374 lbs<\/span><\/td><\/tr>
    Actual Weight<\/b> <\/span><\/td>2.77 lbs<\/span><\/td><\/tr>
    Billable Weight <\/b><\/td>9 lbs (dimensional weight rounded up to the nearest whole number)<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    As you can see from this example, while the teddy bear may be light in weight, its larger dimensions determine its billable weight for shipping and will be billed as such. <\/span><\/p>\n\n\n\n

    Example #2: Dumbbell<\/h3>\n\n\n\n

    Dumbbells<\/span> are heavy items with relatively smaller dimensions \u2014 it\u2019s likely that the actual weight of the dumbbell will be greater than its dimensional weight. <\/span><\/p>\n\n\n\n

    We\u2019ll use the DIM divisor of 139 in this shipment example to offer a side-by-side comparison to our teddy bear example. <\/span><\/p>\n\n\n\n

    Length <\/b><\/td>10 inches<\/span><\/td><\/tr>
    Width <\/b><\/td>9.17 inches<\/span><\/td><\/tr>
    Height <\/b><\/td>4.65 inches<\/span><\/td><\/tr>
    Dimensional Weight<\/b> <\/span><\/td>(10 x 9.17 x 4.65) \/ 139 = 3.0676 lbs<\/span><\/td><\/tr>
    Actual Weight<\/b> <\/span><\/td>11 lbs (10.32 lbs rounded up to the nearest whole number)<\/span><\/td><\/tr>
    Billable Weight <\/b><\/td>11 lbs <\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    This example confirms our initial hypothesis \u2014 the dumbbell\u2019s actual weight far exceeds its dimensional weight and will be used as its billable weight for shipping. <\/span><\/p>\n\n\n\n

    3 ways you can reduce shipping costs (+ better packaging options)<\/h2>\n\n\n\n

    Now that you better understand how to calculate the billable weight and when it\u2019s used, you can optimise your shipping strategy<\/a> by reducing costs. <\/span><\/p>\n\n\n\n

    Here are a few ways you can optimise your billable weight and reduce shipping costs<\/a>:<\/p>\n\n\n\n

    1. Review your packaging options<\/h3>\n\n\n\n

    One of the most common mistakes businesses make when they ship their products is using the wrong packaging for their items. <\/span><\/p>\n\n\n\n

    It might be less of a headache for you to use boxes to ship all your items, but since couriers are evaluating the dimensional weight of your packages to arrive at your billable weight, this approach could end up being more expensive for you. <\/span><\/p>\n\n\n\n

    And not only is it more expensive, <\/span>it also doesn\u2019t make for a great customer experience (see below). <\/span><\/p>\n\n\n\n

    \"\"<\/p>\n\n\n\n

    (<\/span>Source<\/span><\/a>)<\/span><\/p>\n\n\n\n

    You might also end up using more shipping supplies<\/a>, such as <\/span>dunnage<\/span><\/a> and other packing material than you would need if you used the appropriate packaging, which further also adds to your shipping costs. <\/span><\/p>\n\n\n\n

    By reviewing your packaging options, you can be more intentional about the packaging you use for each of your shipments, thereby reducing your billable weight and your shipping costs. But it can be hard to track and predict shipping costs when every shipment can vary in weight. <\/span><\/p>\n\n\n\n

    However, a 3PL like ShipBob can help make the process easier. For instance, ShipBob\u2019s <\/span>Box Selection algorithm<\/span><\/a> and our Cubiscan machines use actual product dimensions and your packaging preferences to tell us which package size we should use for any order combination, so your orders will have consistent pricing.<\/span><\/p>\n\n\n\n

    2. Switch from boxes to poly mailers<\/h3>\n\n\n\n

    Boxes come in standard dimensions, aren\u2019t flexible, and require ample dunnage to ensure products are secure during transit. If you\u2019re shipping products like t-shirts, boxes may increase your dimensional weight and add to your shipping costs. <\/span><\/p>\n\n\n\n

    Poly mailers<\/span><\/a> or poly bags are smart and affordable alternatives to boxes to reduce your shipping costs. They\u2019re lightweight and sturdy, take up less room than a box, have a self-sealing foldover lip, and some even come with bubble wrap padding built-in as well. <\/span><\/p>\n\n\n\n

    Poly mailers are flexible and don\u2019t require additional dunnage for shipping, which is why they\u2019re the preferred choice to apparel retailers, for example, where the products are not as susceptible to damage while in transit.<\/span><\/p>\n\n\n\n

    To help merchants ship packages out using the optimal packaging, ShipBob offers both bubble mailers and regular poly mailers as part of their standard packaging options in multiple sizes.<\/span><\/p>\n\n\n\n

    Of course, not every type of product can be shipped in a poly mailer (take glassware, for example), but they\u2019re worth adding to your packaging mix so that you can reduce your billable weight as much as you can.<\/span><\/p>\n\n\n\n

    3. Use ships in own container (SIOC) packaging<\/h3>\n\n\n\n

    SIOC is a form of product packaging where the product ordered can be shipped to the customer in its original packaging, without any additional packaging required such as an overbox. A common example of this is a product that is stored in a box (e.g., a pair of shoes).<\/p>\n\n\n\n

    Not only does this reduce redundant packaging but it potentially saves money by reducing the billable weight.<\/p>\n\n\n\n

    4. Partner with a 3PL<\/h3>\n\n\n\n

    Though there are ways you can reduce billable weight and shipping costs by yourself if you\u2019re currently fulfilling orders in-house, you can potentially save time and money by partnering with a <\/span>3PL<\/span><\/a> like ShipBob.<\/span><\/p>\n\n\n\n

    3PLs stock a variety of packaging solutions for their customers and they have the expertise needed to recommend the right packaging option for your products. <\/span><\/p>\n\n\n\n

    You might be torn between different box dimensions<\/a> and void fill options, so having a professional 3PL who knows what they\u2019re doing can get you shipping faster, cheaper, and more efficiently. <\/span><\/p>\n\n\n\n

    Tech-enabled 3PLs<\/a> like ShipBob also offer insights into important <\/span>distribution metrics<\/span><\/a> that you can use to make informed decisions, such as <\/span>how much your average shipping costs are.<\/span><\/p>\n\n\n\n

    How ShipBob works to optimise your shipments<\/h2>\n\n\n\n

    At ShipBob, our job goes beyond providing premium retail fulfilment<\/a> solutions. Our goal is to provide you with the infrastructure, technology, resources and customer support needed to grow your business. <\/span><\/p>\n\n\n\n

    With ShipBob, billable weight<\/a> is calculated as follows:<\/span><\/p>\n\n\n\n