Etsy Payments Policy Update October 2025: What Sellers Need to Know
Etsy has announced important updates to its new Etsy Payments Policy, effective October 9, 2025,
UPS will align its dimensional weight (DIM) calculation method with FedEx starting August 18, 2025, rounding all fractional package dimensions—length, width, and height—up to the next whole inch.
Previously, UPS rounded down dimensions less than 0.5 inches. Now, even a package measuring 11.1 inches will be billed as 12 inches, raising its DIM weight and potentially shipping costs.
Imtiaz Kermali of eShipper estimates that a merchant shipping 2,500 packages per month could see $32,000+ in extra annual costs from this change alone. This shift comes amid rising carrier rates, global supply chain volatility, and a competitive pre-holiday season.
Source: Supply Chain Dive
Whether you ship from Shopify, WooCommerce, Amazon, eBay, or your own warehouse, these shipping costs could eat into your margins fast—especially heading into the holiday season. Sellers should use August as a packaging audit month and diversify carrier strategies.
We recommend pairing cost optimization with multichannel selling, because if you’re only relying on one channel or one fulfillment method, changes like this hit harder. CedCommerce’s multichannel tools can help centralize your order management and keep costs predictable.
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