eCommerce Retailers: Is Your NetSuite Integration Ready for New Shipping Cost Calculation Rules?

ecommerce shipping eCommerce Retailers: Is Your NetSuite Integration Ready for New Shipping Cost Calculation Rules?

As of January 2015, UPS and Fedex, the most recognized global shipping services, will make an important change in cost calculations for ground-shipped packages in the United States (1) (2). Multiple analysts predict this change will impact one third of all American shipments (3).

The new rules: dimensional weight pricing
Until now, ground shipping costs have been calculated based on weight alone. The new pricing model will now consider both package dimension and weight to generate the shipping cost.

This new set of rules will translate to increased shipping costs applicable to a wide range of packaged goods. Packages that are large but lightweight (ex. apparel) will be greatly impacted. 

Example: The Wall Street Journal did a shipping cost calculation analysis for a 32-pack of toilet paper; the results found a shipping cost increase of 37% based on the new dimensional weight pricing model.

Are you ready?
As an eCommerce retailer, it will be crucial to ensure that your website and NetSuite integration are compliant with these new shipping calculations. Otherwise, profitability margins may be at risk as a result of overspending on shipping. Whether it is in terms of importing products or shipping to clients, companies across America will want to ensure that they are taking these new rules into account. Most recently, ERP Guru clients have contacted us for validation of their eCommerce and NetSuite integration, in order to ensure that their systems will support this change. If you have not yet verified your system, now is the time! 

The good news is ERP Guru can help!
ERP Guru has the expertise required to verify and update your integration. 

Contact our Integration Specialists today and avoid paying the price in 2015!

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ERP Guru – NetSuite Solution Provider