Understanding Carrier Rate Adjustments

Understanding Carrier Rate Adjustments

Carrier rate adjustments are additional charges or credits applied after a label is purchased. Understanding why they happen helps you manage costs.

What Are Rate Adjustments?

Definition: Rate adjustments are billing corrections made by carriers when the actual shipment differs from what was declared at label purchase.

Common Types:

Why Adjustments Happen

Weight Adjustments:

• Scale wasn't calibrated
• Packaging weight not included
• Content changed after label
• Carrier weighed differently

Dimensional (DIM) Adjustments:

• Package larger than declared
• DIM weight exceeds actual weight
• Irregular package shape
• Box bulging

Address Corrections:

• Incorrect ZIP code
• Missing apartment/suite
• Wrong street spelling
• Outdated address

How Adjustments Are Applied

Timeline:

Label Purchase → Carrier Scans → Audit → Adjustment
      Day 0         Day 1-2     Day 3-14    Day 7-30

Billing Process:

1. Original charge at label purchase
2. Carrier audits package
3. Adjustment calculated
4. Applied to your account
5. Appears in transactions

Viewing Adjustments

In Dashboard:

Billing → Transactions → Filter: Adjustments

Adjustment Details:

• Original charge
• Adjusted amount
• Reason code
• Package tracking
• Date applied

Common Adjustment Amounts

Typical Adjustments:

How to Minimize Adjustments

Accurate Measurements:

1. Use calibrated scale
2. Include packaging weight
3. Measure at widest points
4. Round up, not down
5. Weigh after packing

Correct Dimensions:

• Measure length × width × height
• Include any bulges
• Consider irregular shapes
• Use DIM weight calculator

Address Validation:

• Use address validation before shipping
• Include apartment/suite numbers
• Verify ZIP codes
• Include recipient phone

DIM Weight Explained

Formula:

DIM Weight = (L × W × H) ÷ DIM Factor

USPS: DIM Factor = 166
UPS/FedEx: DIM Factor = 139

Example:

Box: 12" × 10" × 8" = 960 cubic inches
DIM Weight: 960 ÷ 139 = 6.9 lbs

If actual weight is 3 lbs,
you'll be charged for 7 lbs (DIM weight)

Disputing Adjustments

When to Dispute:

• Obvious carrier error
• Duplicate adjustments
• Incorrect measurements documented
• Wrong package scanned

How to Dispute:

1. Go to adjustment in Transactions
2. Click "Dispute"
3. Provide evidence (photos, receipts)
4. Submit dispute
5. Review within 5-7 business days

Evidence to Provide:

• Photos showing scale reading
• Measurement photos with ruler
• Receipt showing declared weight
• Original label details

Preventing Address Adjustments

Address Best Practices:

1. Always validate addresses
2. Use USPS format
3. Include ZIP+4 when possible
4. Verify apartment numbers
5. Check business names

Common Errors:

Tracking Adjustments

Monthly Review:

1. Export adjustment report
2. Identify patterns
3. Calculate adjustment rate
4. Compare to industry (1-3% normal)
5. Address recurring issues

Key Metrics:

• Total adjustments / Total labels
• Average adjustment amount
• Top adjustment reasons
• Adjustments by carrier

Account Management

Adjustment Credits: If you overpaid originally:

• Credit applied automatically
• Shows as negative adjustment
• Added to wallet balance

Adjustment Charges: If underpaid:

• Deducted from wallet
• Shows in transactions
• May affect future labels if balance low

Best Practices Summary

Before Shipping:

• Calibrate scale
• Weigh after packing
• Measure dimensions accurately
• Validate address
• Include all surcharges

After Shipping:

• Review adjustments weekly
• Dispute errors promptly
• Track adjustment patterns
• Adjust processes as needed