Shipping costs are one of the most important factors affecting shoppers buying from the online store or any other store. Many factors that can affect the calculation of shipping costs, and in this article we will show you how to calculate shipping costs and the most important factors that affect it, and we will also show you how you can save shipping costs through USTUL.

How to calculate shipping costs

Shipping costs are constantly changing according to a number of factors according to which the shipping cost is determined, and based on these factors, the shipping company determines your cargo costs.

And the following are the most important factors through which shipping costs are calculated:

1. Package dimensions

One of the primary factors by which shipping costs are calculated is package dimensions, which are used by major shipping companies to determine costs.

Package dimensions are calculated by multiplying the length, width, and height of the package itself, then dividing the result by a standard number.

2. Package weight

Which means the weight of the transported package, and it is calculated directly by using the scales intended for calculating the weight of the packages.

The higher the Package weight, the higher the shipping costs, and most shipping companies calculate the shipping cost according to the larger size.

So if the package dimensions are greater than the Package weight, the shipping costs are calculated according to it.

3. Shipping destination

shipping costs

The face of shipping is the third factor according to which shipping costs are determined, and shipping companies set prices for different regions.

And in general, the farther the shipping destination, the higher the cargo costs.

4. Value of contents shipped

The value of the contents of the shipment plays an important factor in determining shipping costs as well, because shipments of large value always need insurance during the transportation process, so that if you are stolen or damaged, you will be compensated so that you do not lose the value of your valuable shipment. and this is called Value Protect.

Freight costs for high-value shipments are often more expensive than regular shipments, due to the addition of the shipment insurance feature.

5. Delivery times

The time of receipt of the shipment also affects shipping costs, the more customers choose to ship faster than usual, the higher the costs of shipping.

In the normal shipping method, the shipment can arrive within 2 to 3 working days, but if the customer wants to receive the shipment quickly, 

It will be shipped to him via air freight, and it will arrive within a day and perhaps on the same day as well.

6. Unexpected problems

There are other unforeseen factors that may occur and cause you an increase in shipping costs.

So you always need to allocate part of your budget to cover that unexpected issues when shipping.

Example ecommerce shipping costs

Here is an example of shipping costs in ecommerce and how you determine the selling price of your product after finding the right shipping company.

So that the price of the product covers cargo costs and achieves you the ideal profit margin, for example:

If the merchandise cost is $10, the shipping fee is $2, and the handling and packaging costs are $1.5, your total cost will be 13.5, and with an ideal 50% profit margin, your selling price will be $27.

How to compare shipping options by cost

shipping costs

When calculating shipping costs you will need to compare shipping options with costs as well, and at USTUL there are more than one shipping options available and each option has a certain cost.

Therefore, you will need to specify the details of your shipment and accordingly, the appropriate shipping options are displayed for you to choose between them that suit your budget.

How to compare shipping options by speed

One of the important things to be aware of when calculating shipping costs is to compare shipping options by speed, as is known the faster the shipping, the higher the shipping cost.

To calculate the cost correctly, try to balance the speed and cost that will suit your budget, so as not to be surprised that you chose express shipping, but in return you will pay huge costs that do not fit your budget.

Save Big on Shipping Charges with USTUL

With USTUL Shipping, you can save a lot on shipping costs, as USTUL offers you plenty of affordable shipping options to suit all budgets.

So that they provide you with the best shipping methods at the best possible prices, and they also make amazing and frequent discounts on large shipments.

So if you are looking for the best shipping companies that save you a lot of costs, USTUL is your best choice.

If you are a Food and Perishables company, currently searching for an answer to your transportation and logistics concerns, please contact USTUL Today! We understand the importance of timely handling, processing of return products and materials, and have a clear grasp of the critical need for delivering on time. Bakery and Dairy Equipment is specified to our customer’s exacting needs including dry van, temperature-controlled, frozen, deep-frozen, and specialized equipment.