direct-to-customer, brand management, Marketing, apparel, Merchandising, shipping calculation

January 11, 2011 08:53 ET

PAID AuctionInc Software Manages New UPS/FedEx Dimensional Shipping Rates to Maintain Retailer Margins

BOSTON, MA--(Marketwire - January 11, 2011) -  PAID Inc.'s (OTCBB: PAYD) AuctionInc shipping calculation software suite goes a long way in preparing online retailers to accurately calculate shipping under the new dimensional weight formulas the United Parcel Service (UPS) and FedEx instituted on January 3, 2011 to determine shipping rates. Both FedEx and UPS have very significantly changed the factor that determines whether packages will be "dimensionally rated" or not. When calculating a package's shipping rate, all three carriers (including the US Postal Service) compare the physical weight of the package to the dimensional weight, and use the higher of the two weights. The dimensional weight is determined by calculating the total volume (L x W x H) and then dividing by a dimensional weight "factor." Up to now, for UPS and FedEx this "factor" has been 194 for domestic delivery, and 166 for international. January 3rd, the domestic factor dropped to 166, and the international factor to 139. 

This change will result in higher dimensional weights, making it much more likely that the dimensional weight will be higher than the physical weight. For retailers, this means that shipping lighter, larger items will become significantly more expensive, and the definition of "larger" will start at a smaller size.

All of PAID's AuctionInc software solutions, including ShopCart, Mals Plug-in, ShipCalc, eBay AiShip calculator, AiShip, and our Shipping Rates API, incorporate an intelligent packaging engine that uses patented and patent-pending technologies developed by PAID, Inc. The AuctionInc packaging engine supports the use of item dimensions within its shipping algorithms, delivering accurate shipping costs across all three carriers under the new dimensional weight factors. 

"We strongly recommend that vendors incorporate product dimensions and use software that supports dimensional weight, such as AuctionInc, in their calculation of shipping charges so they don't undercharge customers for shipping," said PAID AuctionInc Manager Doug Sherman. "Underestimating shipping charges can quickly eat up profit margins, even for retailers that absorb shipping costs in order to offer free shipping. For major sellers of larger, light weight items, miscalculating this shipping rate change could mean the difference between profit and loss." 

Sherman added, "AuctionInc software makes it easy for retailers to offer customers accurate comparisons of shipping rates across the three major carriers in real time as they put each item in their shopping cart. Sharing that information throughout the shopping process eliminates the unpleasant surprise of added shipping charges at checkout, decreases shopping cart abandonment and encourages additional purchase when shoppers see how insignificantly additional products increase the shipping cost."

Greg Rotman, PAID CEO, noted, "AuctionInc uses proprietary technology to deliver accurate shipping charges accounting for a wide range of product and shipping variables. Based on communication with the US Patent & Trademark Office and our legal counsel at Hunton & Williams, we believe we are nearing the end of the process for our child patent application covering portions of our technology."

About PAID, Inc.:
PAID, Inc., publicly traded under the ticker PAYD, is a one-stop brand management and marketing resource for music, entertainment and sports personalities and organizations, and offers AuctionInc™ online shipping calculation and shopping cart software employing its patented technology to streamline ecommerce. Known for quality and customer service, PAID offers turnkey online, mobile, social media and traditional marketing campaigns, as well as award-winning video & film production, VIP ticketing, web site design, merchandising, ecommerce and fan community management programs. More details are available at

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the markets, variations in the company's cash flow, competition, celebrity programs, business development efforts, prospective growth, technology availability and cost of materials and other risk factors. Factors that could cause actual results to differ materially are discussed in the Company's most recent filings with the Securities and Exchange Commission. 

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    Julie Shepherd
    Accentuate PR
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