What is Chargeable Weight?
Chargeable weight is a measure of weight deduced by shipping carriers to decipher the associated shipping cost. Chargeable weight can be volumetric or actual gross weight, and the more significant amount is usually considered.
Significance of Chargeable Weight in an E-commerce Shipping and Delivery
Chargeable weight is a global standard for calculating the shipping cost for a package. It mitigates confusion and provides an accurate estimate to freight carriers.
- Pricing: The pricing of a shipment is calculated based on the chargeable weight. As a global standard, it mitigates pricing confusion.
- Better palletization and optimum space usage: Freights have limited space in terms of weight and volume. Since chargeable weight considers both of the mentioned factors, shipping companies can pre-estimate the perfect palletization setting to leverage maximum space in their containers. It further reduces cost as more products are shipped.
Prerequisites of Chargeable Weight and How It Works
A seller needs to scope out the dimensions of a shipment before calculating the chargeable weight of a particular package.
The formula for chargeable weight: L X B X H, / divisor
The divisor varies per shipping company. Hence, checking in with them before calculating the chargeable weight is a good practice.
In case the computed chargeable weight is lower than the actual weight. The shipping company considers the latter as chargeable weight.
Use Case with Chargeable Weight
To calculate chargeable weight, companies need to calculate actual gross weight and volumetric weight.
Actual gross weight can be calculated by using a scale and including all packages. For instance, the gross weight of a product is 5 Kg. Next, calculate the volumetric weight by considering the dimensions of the product. Say the length, height and width are 80 cm x 20 cm x 45 cm, and the volumetric weight will be 11.4 kg.
The chargeable weight is the greater value. So, the company has to pay a shipping price depending on a chargeable weight of 11.4 kg.