Invoice Line Items Explained

We provide detailed explanations of each billing line item.

Patrick Day avatar
Written by Patrick Day
Updated today

Our goal is to empower you with the knowledge needed to optimize your operations and make informed choices.

Special Project
The Special Project Fee covers any unique or customized tasks requested by clients. These projects are charged at a $60 an hour rate with a minimum of one hour per project.


Software
The Software Fee covers the use of Atomix specialized/customized software and technology required for order processing, inventory management, and tracking.

Storage
The Storage Fee pertains to the cost of storing inventory in the fulfillment center. It is based on the volume of space your products occupy within the warehouse.


Warehouse Shipment
The Warehouse Shipment Fee covers the cost of receiving and processing inventory into the fulfillment center.


Billable Weight
When it comes to pricing, carriers employ a concept known as billable weight. This calculation takes into account both the actual weight of the shipment and its dimensional weight (DIM weight).

Actual weight vs DIM Weight

  • Actual Weight: This refers to the physical weight of the shipment, including the product and its packaging.

  • Dimensional Weight (DIM Weight): DIM weight considers the package’s size—its length, width, and height—in relation to its weight. Dim Divisot table below

    • DIM weight formula: (Length x Width x Height) / DIM Divisor.

    • Example: 10x10x10 box shipping international = (10*10*10) / 139 = 8 lbs (carriers round to the next whole pound).

DIM Divisor

Atomix Service

DIM Divisor

Economy

166

Ground

166

Expedited

194

International

139

Carrier DIM Divisors

  • UPS Ground Services- 139

  • Fedex Ground Services- 139

Billable Weight Calculation

The billable weight is determined by comparing the actual weight and the DIM weight. Whichever value is greater becomes the billable weight for that shipment.

In essence:

Billable Weight=max(Actual Weight,DIM Weight)


How Carriers Calculate Billable Weight

Let’s break down how some carriers calculate billable weight:

  • UPS and FedEx:

    • They use the greater of actual weight and DIM weight.

    • DIM weight formula: (Length x Width x Height) / DIM Divisor.

    • DIM divisor varies based on the carrier and service level.

  • DHL:

    • Similar to UPS and FedEx, DHL uses the greater of actual weight and DIM weight.

    • DIM weight formula: (Length x Width x Height) / DIM Divisor.

  • USPS:

    • USPS exclusively uses actual weight for pricing.

    • No DIM weight calculations; only the package’s actual weight matters.


Per Order Fee

Every order incurs a baseline fee, which includes the first item in the order. This fee covers the essential handling and processing steps for Atomix to process a single order with 1 item.

Additional Pick Fees

When an order contains more than 1 item, additional pick fees apply. These charges account for the complexity involved in picking, preparing and packaging each additional item within the same order.

Packaging Fees

Packaging fees encompass the material cost of all packaging supplies needed to prepare the order for shipment- corrugated boxes, poly mailers, bubble mailers. Standard packaging supplies are included in the cost- such as void fill, tape, etc. If custom packaging is used, the fee remains consistent with an additional pick fee. This is done since it requires Atomix to pick an additional item that is not standard to our setup.

Residential Surcharge

Carriers can impose a residential surcharge for delivering to residential addresses for specific service levels. This fee is captured in the Atomix Ground and Express service levels, the break down of fee is below:

Service

Amount

Economy

$---

Ground

$2.50

Expedited

$3.50

International

$3.50 + (Carrier adjustments)

Fuel Surcharge

Fuel surcharges fluctuate based on fuel prices and directly impact shipping costs.

Carriers adjust this fee periodically to reflect changes in fuel expenses. This is calculated as a % of the base rate for fee (e.g. here's fedex calculation weekly)

Fuel as a % of Base Rates:

Service

< 1 LB

> 1 LB

Economy

7.75%

12.5%

Ground

7.75%

12.5%

Expedited

21.5%

21.5%

International

25.0% + (Carrier adjustments)

25.0% + (Carrier adjustments)

EDAS/DAS Surcharge

Extended Delivery Area Surcharge (EDAS) or Delivery Area Surcharge (DAS) applies to specific locations. If an address falls outside the standard delivery area, carriers levy this additional fee based on these specific zip codes.

Service

DAS (Delivery Area)

EDAS (Extended)

Economy

$2.00

$2.50

Ground

$3.00

$4.50

Expedited

$3.00

$4.50

International

$--

$--

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