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Calculating shipping rates is not as complicated as it might seem. Although many shippers are unsure about how to figure out how much their final shipping costs will be, when you take into account some basic information, you will find that it's relatively easy to get an idea as to how much your shipping will cost in the end. Using a shipping calculator can help streamline this process for your online store.
Whether you're someone who sends out hundreds of packages each week or someone who only sends out one or two a year, it's vital that you know how to calculate the shipping costs for your parcels. To make things a little bit simpler for you, we have decided to compile a guide that explains how to calculate shipping costs. By the end, you'll be able to figure out what affects the price of your packages with ease, ensuring customer satisfaction and profit margins are optimized.
What Affects the Price of Shipping?
Every package is priced differently based on a multitude of factors. If you're sending a heavy part for a piece of heavy machinery and a set of small buttons, you're going to have to pay different shipping fees to ship these items. The following factors will affect how much it costs you to ship your items:
The Parcel Company You Use
Each parcel company out there will offer shipping prices that are slightly different than their competitors. If you use UPS, USPS, DHL, FedEx, or another company, the price for your shipping will look slightly different than if you were to use one of their competitors. Check the website of the company that you're utilizing to see if they have information about their shipping rates. Using major carriers versus regional carriers can also impact your costs and delivery times.
The Size of Your Package
There are two size-related factors that will affect the price of shipping your item: the weight and the dimensions of your packaging. The larger and heavier your package is, the more it will cost to ship. Typically, lighter and smaller packages ship for a more affordable price, so keep this in mind when packaging up your items. You always want to make your packaging as condensed as possible because this will likely provide you with cheaper shipping prices, impacting the bottom line for your small business.
The Distance Your Package Is Traveling
Sending a package from Florida to Alaska will be more expensive than sending a package from the west side of Utah to the east side of Utah. The farther that you have to send your package, the more you should expect to pay for shipping. Distance matters, so the price of your package will vary based on where it's going. Shipping zones and zip codes play a crucial role in determining the delivery charge.
How Fast Your Package Needs to Arrive
If you need your package to arrive the next day, it is certainly going to cost more to ship than if you need it to be there in two weeks. Next day shipping is almost always the most expensive type of shipping, especially when compared to standard shipping methods. Express services like priority mail can significantly affect your total cost.
How Much Your Package Is Insured
Depending on the amount of insurance coverage you put on your package, the cost of it will vary. The more valuable the item that you're sending is, the more insurance it will need, and this will make the cost of shipping rise.
International Shipments
When shipping across international borders, international shipping costs and regulations will apply. Be prepared for extra costs and handling fees associated with international shipments.
Why Don't Shipping Companies Offer Flat Rates?
It might seem like it would be more efficient, and better for the consumer, for shipping companies to offer one flat rate for their services. Although shipping companies providing their customers flat rates would be simpler when it comes time for you to calculate the price of shipping, there are many different reasons why shipping companies cannot offer flat rates.
For one, all the factors that we discussed above make shipping more complicated and, in turn, more expensive. But, in addition, the costs of transportation are at an all-time high right now, which makes it harder to provide flat rates for shipping. Finally, because there is high customer demand and only a limited number of employees and transportation vehicles available, the price that it costs to ship items must be unique to whatever is being shipped.
It is important to note that sometimes shipping companies offer variable flat rates. That is to say, a package that exists within a certain size range will be a certain price. But even with this protocol in place, shipping companies do not price each and every package they ship the same. Flat rate shipping and flat rate services are options that some companies provide under specific conditions.
Tips for Calculating the Price of Shipping
You are a little bit more familiar with some of the things that affect the price of shipping, and you're also more familiar with why shipping companies cannot just provide customers with one flat rate. Now, let's go over some tips that will help you when it comes time to calculate the price of the items that you're shipping. Here are some ways to figure out how much shipping will cost:
- See if there is a website that provides you with an exact price: Depending on which company you use to ship your package, there might be a feature online that lets you know how much it will cost to ship using that provider. Features such as this one can provide you with some transparency as you seek to send out your package. Many companies offer a shipping cost calculator or rate calculator.
- Always measure packages accurately: If you want to know exactly how much your package will cost to ship, do not guess how much it weighs and how big it is. If you underestimate either of those figures, you will likely have to pay an additional fee when your package is picked up. Knowing the actual weight and dimensional weight (or dim weight) is crucial.
- Keep fees in mind: It is always best to do your research to find out if there will be any fees tacked onto your shipping costs. The fees you should expect will vary. If you're needing to send your package out for next-day arrival, if you're sending certain hazardous materials, or doing anything else that might add on a fee to your shipping price, you should know about that to factor it into your estimates. Additional charges such as handling fees and carrier fees should be included in your cost calculation.
- Consider using various shipping methods: Evaluating different shipping services, like FedEx Ground, postal service options, or freight services, can help you find the best rates and the right balance of cost and speed for your order fulfillment needs. Choosing the best option and implementing a strategic shipping strategy can provide a competitive advantage.
Shipping Doesn't Have to Be Hard—with ShipNetwork, Shipping is Easy
Pricing your packages is simple with ShipNetwork. For more information about our pricing and services, contact us. Utilizing Shopify shipping integrations and other e-commerce tools can enhance the customer experience and ensure timely delivery to your customer’s door. Whether you're sending gift cards or large shipments, finding the right shipping costs is a good idea for maintaining cost efficiency and improving your bottom line.
Calculating shipping rates is not as complicated as it might seem. Although many shippers are unsure about how to figure out how much their final shipping costs will be, when you take into account some basic information, you will find that it's relatively easy to get an idea as to how much your shipping will cost in the end. Using a shipping calculator can help streamline this process for your online store.
Whether you're someone who sends out hundreds of packages each week or someone who only sends out one or two a year, it's vital that you know how to calculate the shipping costs for your parcels. To make things a little bit simpler for you, we have decided to compile a guide that explains how to calculate shipping costs. By the end, you'll be able to figure out what affects the price of your packages with ease, ensuring customer satisfaction and profit margins are optimized.
What Affects the Price of Shipping?
Every package is priced differently based on a multitude of factors. If you're sending a heavy part for a piece of heavy machinery and a set of small buttons, you're going to have to pay different shipping fees to ship these items. The following factors will affect how much it costs you to ship your items:
The Parcel Company You Use
Each parcel company out there will offer shipping prices that are slightly different than their competitors. If you use UPS, USPS, DHL, FedEx, or another company, the price for your shipping will look slightly different than if you were to use one of their competitors. Check the website of the company that you're utilizing to see if they have information about their shipping rates. Using major carriers versus regional carriers can also impact your costs and delivery times.
The Size of Your Package
There are two size-related factors that will affect the price of shipping your item: the weight and the dimensions of your packaging. The larger and heavier your package is, the more it will cost to ship. Typically, lighter and smaller packages ship for a more affordable price, so keep this in mind when packaging up your items. You always want to make your packaging as condensed as possible because this will likely provide you with cheaper shipping prices, impacting the bottom line for your small business.
The Distance Your Package Is Traveling
Sending a package from Florida to Alaska will be more expensive than sending a package from the west side of Utah to the east side of Utah. The farther that you have to send your package, the more you should expect to pay for shipping. Distance matters, so the price of your package will vary based on where it's going. Shipping zones and zip codes play a crucial role in determining the delivery charge.
How Fast Your Package Needs to Arrive
If you need your package to arrive the next day, it is certainly going to cost more to ship than if you need it to be there in two weeks. Next day shipping is almost always the most expensive type of shipping, especially when compared to standard shipping methods. Express services like priority mail can significantly affect your total cost.
How Much Your Package Is Insured
Depending on the amount of insurance coverage you put on your package, the cost of it will vary. The more valuable the item that you're sending is, the more insurance it will need, and this will make the cost of shipping rise.
International Shipments
When shipping across international borders, international shipping costs and regulations will apply. Be prepared for extra costs and handling fees associated with international shipments.
Why Don't Shipping Companies Offer Flat Rates?
It might seem like it would be more efficient, and better for the consumer, for shipping companies to offer one flat rate for their services. Although shipping companies providing their customers flat rates would be simpler when it comes time for you to calculate the price of shipping, there are many different reasons why shipping companies cannot offer flat rates.
For one, all the factors that we discussed above make shipping more complicated and, in turn, more expensive. But, in addition, the costs of transportation are at an all-time high right now, which makes it harder to provide flat rates for shipping. Finally, because there is high customer demand and only a limited number of employees and transportation vehicles available, the price that it costs to ship items must be unique to whatever is being shipped.
It is important to note that sometimes shipping companies offer variable flat rates. That is to say, a package that exists within a certain size range will be a certain price. But even with this protocol in place, shipping companies do not price each and every package they ship the same. Flat rate shipping and flat rate services are options that some companies provide under specific conditions.
Tips for Calculating the Price of Shipping
You are a little bit more familiar with some of the things that affect the price of shipping, and you're also more familiar with why shipping companies cannot just provide customers with one flat rate. Now, let's go over some tips that will help you when it comes time to calculate the price of the items that you're shipping. Here are some ways to figure out how much shipping will cost:
- See if there is a website that provides you with an exact price: Depending on which company you use to ship your package, there might be a feature online that lets you know how much it will cost to ship using that provider. Features such as this one can provide you with some transparency as you seek to send out your package. Many companies offer a shipping cost calculator or rate calculator.
- Always measure packages accurately: If you want to know exactly how much your package will cost to ship, do not guess how much it weighs and how big it is. If you underestimate either of those figures, you will likely have to pay an additional fee when your package is picked up. Knowing the actual weight and dimensional weight (or dim weight) is crucial.
- Keep fees in mind: It is always best to do your research to find out if there will be any fees tacked onto your shipping costs. The fees you should expect will vary. If you're needing to send your package out for next-day arrival, if you're sending certain hazardous materials, or doing anything else that might add on a fee to your shipping price, you should know about that to factor it into your estimates. Additional charges such as handling fees and carrier fees should be included in your cost calculation.
- Consider using various shipping methods: Evaluating different shipping services, like FedEx Ground, postal service options, or freight services, can help you find the best rates and the right balance of cost and speed for your order fulfillment needs. Choosing the best option and implementing a strategic shipping strategy can provide a competitive advantage.
Shipping Doesn't Have to Be Hard—with ShipNetwork, Shipping is Easy
Pricing your packages is simple with ShipNetwork. For more information about our pricing and services, contact us. Utilizing Shopify shipping integrations and other e-commerce tools can enhance the customer experience and ensure timely delivery to your customer’s door. Whether you're sending gift cards or large shipments, finding the right shipping costs is a good idea for maintaining cost efficiency and improving your bottom line.
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