How to determine your costs using a shipping calculator
Table of contents
Why is it important to calculate your shipping costs?
Your business’ shipping rates can have a major impact on your bottom line. Overcharging could cause a dip in sales but shouldering too much of the costs will narrow profits. Being able to quickly calculate shipping options by carrier, package size, and shipping zones will strengthen your budget planning and minimize delivery costs.
How much does it cost to ship a package?
Shipping costs depend on a lot of factors. Above all, the size of what you’re shipping and the journey it will take to reach your customer matters most. But finding the exact shipping rate for your package can be confusing. In early 2023, PitneyShip® will debut a free online shipping calculator that will help you determine the costs and the right delivery option for your package.
Being able to calculate your shipping options by delivery speed, parcel size, and shipping zones will allow you to strike the right balance for satisfying customers and maximizing profits.
5 factors carriers use to determine your shipping rate
As an eCommerce retailer, there’s one rule of thumb for shipping cost: The easier it is for a parcel to move through the delivery network, the more affordable the rate. What you ship, how you package it, and when you schedule it could all play a role in what you pay. Addressing these five questions during the planning phase can help you unlock new savings.
Where is your package going?
First and foremost, price is determined by the journey. Depending on the carrier, certain services may be limited or not available in a delivery area. Similarly, options could change whether you’re shipping to a residence, commercial location, or PO box. Understanding what rates look like by origin and destination is a great start for keeping expenses to a minimum.
When must your delivery arrive?
Maybe your package needs to be there yesterday. Or, perhaps you have plenty of time to find a more cost-effective service and still meet customer expectations. Knowing the appropriate delivery window can decide whether you land on the right price for timely delivery.
How big is the package?
Package weight and size dimensions have a big influence on costs. With PitneyShip® Cube, you can use a built-in scale and mobile app to capture precise weight and volume dimensions in your own office. The reliable measurements allow you to test out packaging strategies and potentially find the right fit for lower tier rates.
How difficult is it to move?
Distance, speed, and size aren’t the only factors that could affect a shipping rate. Non-standard packages might reduce your options. Certain items may not be eligible for air transportation, such as hazardous materials or lithium batteries. Similarly, perishable or fragile deliveries might limit service options. Recognizing which services will accept your package lets you sift through selections and find the one that works best for you.
Any special requirements?
Does your package need to arrive on a weekend? Will you be adding loss or damage protection? Does it require signature or collect on delivery services? Special requirements will impact costs. Adding those to your calculation beforehand will ensure you’re not surprised by fees down the road.
I understand what affects my shipping costs. Now what?
You can streamline this crucial, but time-intensive process with multi-carrier shipping software. Instead of crunching the shipping rate numbers yourself, the right platform will allow you to rate shop across carriers, identify ideal shipping options, and schedule your shipments all in one place.
Use PitneyShip® Rate Calculator for cost-effective shipping
The cheapest shipping option won’t always be obvious. For eCommerce businesses, calculating shipping costs and comparing the price of every single delivery costs valuable time. Make the process simple and quick with the PitneyShip® Rate Calculator. Compare rates between carriers and gain exclusive discounts to ensure you’re accessing the right service at the best price.
Finding the best rates for USPS, UPS, and FedEx is just the start. Our innovative shipping software solutions can be tailored to your unique shipping needs and volume, with flexibility to keep up with changes in demand. Ship from multiple locations, print shipping labels, and schedule pickups in an intuitive interface designed to make shipping a breeze.