Dimensional (DIM) Weight Costs and Increased ECommerce Sales
Driven in-part by the COVID-19 pandemic, 33% of American consumers said they increased online shopping in the past year, with nearly two-thirds confirming that the majority of their shopping is done online. In the United States, consumers are expected to spend $933.30 billion on ecommerce in 2021, up 17.9% year over year. Huge retailers like Target, Walmart, Home Depot and Best Buy have led the way in shaping expectations from customers; who can now rely on two hour curbside pickup, contactless kiosk services and quick delivery with a few clicks from the comfort of their home. According to the latest data from eMarketer, U.S. sales for “click and collect” services will reach more than $100 billion in 2022, up $20 billion year over year. Faster delivery expectations is not the only challenge facing American retailers. According to a focus group by Accenture, 50% of global consumers say the pandemic made them “totally revise” their personal purpose and what is important to them in life. This group of consumers are increasingly focused on what goes into a product and how far it’s been transported. They are also keyed in on doing business with brands that are environmentally-friendly and/or investing in sustainability. In yet another telling 2020 report, Brandwatch asked 120,000 consumers their thoughts on the role and responsibilities of businesses in 2020. Research Analyst Abigail Manning said: “People no longer feel it’s acceptable for brands to be purely profit driven. Instead, they want to see companies taking action to improve the world we live in. We’ve seen people searching online way more for sustainable and ethical brands, compared to what they had in previous years.” With consumer mind-sets evolving and competition increasing, it is essential for mid-size retailers to keep up with the increased demand for deliveries and sustainable products and packaging. In combination with consumer research, retailers also have to look at the big picture of product packaging costs and their bottom line. The experts at Millennium Packaging can help drive your packaging costs down using automated technology and the right materials.
The Impact of Dimension Weight Costs and Packaging
In 2019, The United States Postal Service significantly increased the cost of shipping when they updated their Dimensional Weight policy. Dimensional weight is calculated by taking into account the weight of the product in combination with the outer dimensions of its packaging. For example, if a shoe box has a width of 13inx13in, but is wrapped in an additional external box that is 13.3inx13.3in, the packaging volume results in increased dimensional width and increased costs for the retailer. Charging for DIM weight benefits USPS, UPS and FedEx – it ensures that a one pound pillow and one pound box of clothing don’t cost the same – the pillow likely takes up far more space to ship, so it’s DIM weight and cost is higher. Pictured: Before and after DIM weight when removing external packaging (7lbs vs. 4lbs DIM weight). According to Millennium partner Sealed Air, packaging materials account for only 15% of the total cost of packaging, while increasing freight costs account for 60%. USPS delivers more than 40% of residential e-commerce shipments – the largest share among the United States’ top three carriers of small parcels (FedEx and UPS). With this DIM policy change, Millennium Packaging clients saw shipping costs soar and many were forced to reevaluate their packaging materials. So what should retailers do to eliminate this excess charge?
StealthWrap™ Automated DIM Reduction Solution by Sealed Air
StealthWrap™ Automated DIM Reduction Solution eliminates the need for an outer carton and the potential of over-packaging a shipment. This means no excessive air pillows or paper will be used to fill up a box that is too big for the product inside. Using a product like StealthWrap™ ensures you minimize your packaging dimensional weight by avoiding putting a box in a box, helping your bottom line and increasing sustainability. Customers who use StealthWrap™ streamline their material usage as well as consolidate the space needed for packaging materials like corrugated cartons, tapes and void fill materials. One roll of StealthWrap™ is equivalent to 1,000 average size cartons. Sealed Air recently worked with UPS, which accounts for 37% of residential e-commerce shipments, to verify that StealthWrap™ is compatible with their sorting systems. Six-sided box shaped packages protected in StealthWrap™ perform just as any other plastic product, and do not require an outer carton and therefore no additional handling charge (AHC) will be assessed. StealthWrap™ Automated DIM Reduction Technology delivers:
Inline carton alternative and concealment shipping
Unmatched proprietary opacity in an engineered thin gauge film
Throughput at 20-60 packages per minute
Brown or carbon colors deliver complete concealment of contents while maintaining outstanding toughness, tear strength and burst resistance
Enhanced security, privacy and confidentiality
Cost-effective outer carton shipper for the small to medium parcel environment where a box is not required
StealthWrap™ packaging can be recycled by depositing the film at participating stores such as Target, Walmart, Lidl and Wegmans.
Along with providing a solution to help streamline your packaging costs, Sealed Air is committed to delivering sustainable solutions for their customers. With goals to create only sustainable packaging, reduce material usage and increase recyclability, Sealed Air and the Automated DIM Weight Reduction Technology can help you reach your sustainability goals while keeping your bottom line low.
Millennium Packaging can help reduce cost with automation
Millennium Packaging assesses current needs in concert with Sealed Air, providing a quote that includes options and customization. Millennium Packaging also partners with top shrink film providers in the marketplace. We can couple your machine with the right materials. Sealed Air StealthWrap™ will run on most shrink sealers, whether semi or fully automatic. Millennium has long-standing relationships with top equipment manufacturers and we can provide you with new or pre-owned equipment options. For more information on Millennium Packaging’s solutions please contact our team of experts at (847) 719-6117.
Our team at Millennium has decades of experience in the packaging industry, and we understand the nuances of creating the best packaging solutions for any product, any business, and any industry.
We Offer Top Tier Packaging Solutions Because We Partner with the Best.
(847) 717-3300
Driven in-part by the COVID-19 pandemic, 33% of American consumers said they increased online shopping in the past year, with nearly two-thirds confirming that the majority of their shopping is done online. In the United States, consumers are expected to spend $933.30 billion on ecommerce in 2021, up 17.9% year over year. 
Huge retailers like Target, Walmart, Home Depot and Best Buy have led the way in shaping expectations from customers; who can now rely on two hour curbside pickup, contactless kiosk services and quick delivery with a few clicks from the comfort of their home. According to the latest data from eMarketer, U.S. sales for “click and collect” services will reach more than $100 billion in 2022, up $20 billion year over year. Faster delivery expectations is not the only challenge facing American retailers. According to a focus group by Accenture, 50% of global consumers say the pandemic made them “totally revise” their personal purpose and what is important to them in life. This group of consumers are increasingly focused on what goes into a product and how far it’s been transported. They are also keyed in on doing business with brands that are environmentally-friendly and/or investing in sustainability. In yet another telling 2020 report, Brandwatch asked 120,000 consumers their thoughts on the role and responsibilities of businesses in 2020. Research Analyst Abigail Manning said: “People no longer feel it’s acceptable for brands to be purely profit driven. Instead, they want to see companies taking action to improve the world we live in. We’ve seen people searching online way more for sustainable and ethical brands, compared to what they had in previous years.” With consumer mind-sets evolving and competition increasing, it is essential for mid-size retailers to keep up with the increased demand for deliveries and sustainable products and packaging. In combination with consumer research, retailers also have to look at the big picture of product packaging costs and their bottom line. The experts at Millennium Packaging can help drive your packaging costs down using automated technology and the right materials. 