Do shipping Charges affect your profits? All you need about shipping Charges
Shipping is the actual transportation of the commodity from one point to another, and shipping charges are one of the most important things that customers care about, which may lead them to leave the entire shopping cart if it is high and exaggerated, so you need to put appropriate shipping charges, as if you are a company and import products You also need ways to reduce shipping charges, and in this article we will show you everything you need to know about shipping charges.
What are Shipping Charges?
Shipping charges are those direct costs associated with moving products or merchandise from one place to another,
And retailers strive to provide products to customers on time and with the lowest possible shipping charges so that the consumer does not abandon the shopping cart.
Shipping charges include many costs, such as packaging costs, shipping costs, import or export fees for international shipping.
How to Determine Shipping Cost?
As for how you can calculate shipping charges, there is more than one method, and there is no one method that fits all.
And the following are the most important ways in which you can determine shipping charges or shipping cost:
1. Calculated Shipping
It is one of the easiest ways to determine the shipping charges or shipping cost, and to determine it you will need to first measure the weight and dimensions of the package,
Then calculate the shipping charges or shipping cost according to these measurements and the customer’s own location.
2. Flat-rate Shipping
In this method, you calculate shipping charges or shipping cost by setting a fixed price for shipping, regardless of the shape and weight of the package itself,
And through this method customers can purchase any product and pay only one shipping fee that you specify in advance.
This is the best way to determine shipping charges or shipping cost for small businesses, but it’s not appropriate for large businesses.
3. Free Shipping
It is one of the ways that retailers use in their online stores, where they provide free shipping services in order to increase their sales.
Customers always tend to buy products with free shipping, and in fact, merchants indirectly add shipping costs to the price of the product itself and in return make shipping free.
Shipping & Processing Charges
Some companies charge fixed shipping & processing charges, others set it according to where the goods will be shipped to and also the size and value of the goods transported.
And if you are going to deal with 3PL external sources to ship your products, those centers will set you shipping & processing charges.
And of course they will reduce those charges to you as much as possible, this is in addition to providing the best services for processing and managing orders and warehouses.
And all of this will eventually pay off and enhance customer satisfaction and thus increase sales and revenues.
What Information Do You Need to Calculate Shipping Costs?
In order to correctly calculate and determine the shipping cost, you need a number of information.
And the following are the most important information you need in order to be able to calculate the shipping charges or shipping cost:
1. Shipping Point of Origin and Destination
Information about Shipping Point of Origin and Destination will help you determine your shipping costs, because the greater the distance a package carries, the higher the shipping costs.
2. The Weight of the Package
Package weight can also affect shipping cost, as the smaller and lighter the package, the lower the shipping charges.
And always check that when you calculate shipping costs according to the weight of the package that you are using the total weight of the package and not the weight of the product itself.
As if you use additional items in the packaging, the weight of the product will increase and therefore the shipping charges or shipping cost will increase.
3. Package Dimensions
The volumetric weight can also affect the calculation of shipping charges or shipping cost, and it can be calculated by the following formula:
- Dimensional weight = length x width x height
Sometimes the shipping charges or shipping cost is cheaper by using the volumetric weight of some packages.
4. Delivery Times for Shipping
The delivery times of the goods themselves affect the shipping cost, the faster the goods are delivered, the higher the shipping charges. and you can control the delivery time through Delivery Management Software.
And customers are often willing to pay whatever shipping costs are in order to get the products they want sooner.
How can small businesses reduce shipping costs with a 3PL?
Small businesses can reduce their shipping costs through 3PL, i.e. outsourcing that can help you keep your shipping costs to a minimum.
LOGSTIAT is one of the best logistics companies, which also offers a full suite of courier delivery management features suitable for every type of business.
This makes it one of the best shipping and delivery order management software, through which you can simply monitor the operations of employees and delivery agents with the latest modern technology.
