Shipping cost is an important element to consider as a business owner. It directly impacts the selling price of your product and thus your net profit. Here are our tips to help you get an accurate shipping price.
6 Factors That Affect Shipping Prices
Shipping prices are an important factor for any business owner to consider when selling products, as they directly affect the final selling price of a product and ultimately impact a company’s net profit. To accurately calculate shipping costs, it’s essential to gather detailed information about the shipment and the recipient’s address. Our experts have identified 6 key factors that affect shipping prices, and tips to help you get an accurate shipping price.
- Dimensions and weight of each package: Shipping costs are calculated based on both real weight and dimensional weight. Real weight is the actual weight of the package, while dimensional weight considers the size of the package. This is because larger packages take up more space on a delivery truck, and therefore cost more to ship. It’s important to consider how the size of a package can affect the cost. For example, shipping a 10-pound box that measures 12x8x6 inches will cost differently than shipping a box of the same weight but with dimensions of 24x12x12 inches. Learn more about measuring weight with our helpful blogs: HOW-TO CALCULATE DIMENSIONAL WEIGHT FOR YOUR PACKAGE and PACKAGE WEIGHT AND DIMENSION LIMITS.
- Shipping address: Knowing whether the recipient is located at a business or residential address is important, as couriers often charge extra for deliveries to residential addresses. This is because delivering to a residential address often requires a different delivery route than a business address, and therefore takes more time and resources. To avoid any surprise charges, FlagShip’s online shipping system has the easy-to-use option to check “This is a residential address” when processing a shipment, and the proper fee will be quoted.
- Type of shipping service: The type of shipping service you choose also affects the cost of shipping. Express services such as overnight or 2-day delivery will cost more than standard ground shipping. This is because express services prioritize speed over cost, and therefore require more resources and a higher level of service. It is important to choose the option that best meets the needs of your customer, balancing the cost and delivery time.
- Distance: The distance between the sender and the recipient is another important factor that affects shipping prices. The further the distance, the higher the cost of shipping. This is because longer distances require more resources and time to deliver the package.
- Shipping carrier: The shipping carrier you choose also affects the cost of shipping. Different carriers have different pricing structures, and some may offer better rates for certain types of shipments or destinations. It’s important to research and compare different carriers to find the one that offers the best rates for your specific needs.
- Shipping discounts: FlagShip offers discount shipping rates to all customers, regardless of volume, to help small and medium size businesses save money. Our easy-to-use online shipping systems make it simple to enter all the necessary information accurately, ensuring you get the most accurate shipping price possible.
Shipping prices can be complex and multifaceted, and it is essential to understand the factors that affect shipping costs to accurately calculate shipping prices. By keeping package dimensions minimal and entering all information accurately, you can keep shipping prices low. In addition to these tips, regularly reviewing and comparing shipping rates from different carriers can help you ensure that you are always getting the best deal. And with FlagShip, you do not have to sacrifice quality for the price. Our discounted rates are available for all types of shipping services, including express and standard overnight delivery options.
Don’t let shipping costs eat into your profits. Sign-up for a free FlagShip account for access to exclusive, discounted shipping rates from leading Canadian couriers.
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