Calculating Shipping Costs For Order Fulfillment

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When you are running an e-commerce business, it’s important to manage and handle your different expenses effectively. This does include shipping costs which can be incredibly difficult to understand and measure accurately. Don’t forget, customers want shipping to be free which means that you need to fit them into your budget the right way. There are numerous ways to calculate shipping costs for efficient order fulfillment and at ShipJoy, we can help. 

 

Factors That Impact Shipping Costs 

 

When you calculate shipping, it’s important to be aware that there are numerous factors that can make shipping more expensive. This includes:

 

  • Package weight
  • Dimensions
  • Destinations 
  • Delivery Speed 

 

Generally speaking, if your items weigh more or are larger in size, you will need to pay more. Typically, carriers calculate shipping based on weight as well as dimensional weight. The latter measurement explores the level of space that a package takes up. Be aware that DIM measurements can be useful if you’re selling lightweight products. 

 

You might also want to explore different options such as insurance. Insurance will provide you peace of mind and cover you as well as your customer financially if a product is lost or damaged. This is typically recommended because replacing items can be a lot more expensive. Usually, insurance can be arranged through the same shipping service.

 

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How Do You Calculate Shipping?

 

If you are arranging order fulfillment in your business, then you should check whether a shipping company provides a calculator on their website. However, it is important to note that if you explore this option, then you won’t be getting the best rates. To gain great savings on shipping, you might want to explore a wider market as many companies do offer discounts for customers. 

 

Be aware that some eCommerce sellers will favor a flat-rate shipping option because it’s an easy way to manage the cost. There are advantages and disadvantages to this possibility. Some of the benefits include free boxes as well as automated insurance options. You can also access specialty boxes and with standard shipping, it’s easy to repeat the order. There’s also no surcharges that you need to worry about. 

 

However, it’s worth noting that flat rate boxes are often not suitable for larger products or orders with multiple products. They’re limited by weight too and you can usually get cheaper rates if you use your own boxes. So, while it’s easy to manage this option, it’s not the best way to keep this process in your business efficient. 

 

At ShipJoy, we can help you with all your business’s shipping needs. By providing a fully managed solution we ensure that there are no issues with order fulfillment in your business during these critical times of the year. We can provide a complete customized service to guarantee that customers get your products on time without delay.

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