This article discusses the various factors that impact e-commerce shipping costs.
There are numerous layers to the shipping aspect of the ecommerce industry that may be overwhelming. Even once you’ve determined a shipping carrier and shipping service, the cost to send packages may vary significantly due to many factors. This article discusses the various factors that impact e-commerce shipping costs.
Base Rate Per Shipping Service
Shipping carriers set a base rate per shipping service they provide (standard, economy, etc.) as part of their e-commerce shipping costs. They also adjust their base rates yearly according to shipping capacity, projected operating costs, fuel prices, and other factors. In addition, massive shippers like retailers and e-commerce fulfillment centers can negotiate caps on yearly rate increases. In contrast, smaller shippers tend to send all their volume via one carrier, hoping to receive a discounted rate.
Pay Extra with Surcharges
Moreover, a shipping surcharge is an extra charge besides the package’s shipping cost. They are meant to aid shipping carriers in covering increases in operational costs due to external forces like rising labor costs and fuel price increases. Although significant shippers might be able to negotiate waivers for specific surcharges, they have no control over the surcharges they pay.
Dimensional Weight
Shipping carriers charge for their services and the physical space a package consumes on a truck or airplane. Dimensional weight (DIM) is a pricing formula shipping carriers use to charge customers for the volume packages take up. Regardless of your carrier, they calculate DIM weight with the same steps.
- Weigh the package
- Measure all three dimensions at their most significant point
- Multiply the width, length, and height
- Divide that number by a mysterious number known as the DIM factor
Shipping Zones
Shipping zones impact your e-commerce shipping costs in cost and time. There are about 8 zones for domestic shipments in the United States. These zones are grouped by zip codes from the point of package origin to the destination. In addition, shipping zones are calculated based on where the order is shipped from. Overall, the delivery time and package weight set the shipping cost. Therefore, the more zones traveled, the more significant the price.
As you can see, many factors impact e-commerce shipping costs. Fortunately, Global Docks has many methods to help you navigate that complex world. Contact us to begin your e-commerce journey with us!
Contact Global Docks for Your eCommerce Fulfillment Needs!
Seeking a fulfillment solution? Global Docks understands the speed and flexibility required for your e-commerce business to compete and thrive in today’s online marketplace. To learn more about our import, export, warehouse, or truck transport services, call our company at 305-200-5954 or fill out this contact form to receive a quote. Make sure to follow us on Facebook, Twitter, LinkedIn, and Pinterest!