As a business, you want to make profits and have as broad a reach as possible. To do that, you provide free shipping for products over a minimum amount, among other discounts. Adjusting your profits to your customers’ demand is paramount, as 60%+ customers love to get their products with free deliveries.
In this case, you need to keep an eye on your expenditure. Now, you are providing your customer benefits, requiring you to know a shipping cost calculator. With its help, you can easily estimate shipping cost and how much you earn. Let’s discuss these aspects in detail in this article.
| Table of Content |
Part 1. Top 4 Shipping Cost Calculator on the Market
Let’s start off with the top 4 shipping companies. These companies have a well-defined shipping cost calculator that you can use on their website.
1. USPS
Regarding ground shipping, no one is as cheap as USPS. This value for money is because of how many local routes they cover, and that too each day. You can visit their website to calculate your shipping cost if you know what you are doing.
But here are a few USPS calculation example results.
A priority mail within 1-day express delivery will cost $49.45 for a standard box. The same box will cost only $12.60 if delivered within three days. Now, if the box is a large flat one, the same days of delivery will cost you about $22.40. The standard package size for this box is 12″ x 12″ x 5-1/2″. If the weight increases from standard rates, the cost will rise to $94.50.
2. UPS
UPS rates also depend on the size and type of delivery. If you are a small business, you can get a UPS Connect discount plus more if your shipping is international. You can check their shipping cost calculator here.
Their prices can range from $147.32 for Next Day Air delivery to $100.48 for the same but Saver deal. The standard UPS ground delivery within four days costs only $14.09.
3. FedEx
When you estimate shipping cost through their calculator, you will see that FedEx utilizes the same requirements as other carriers. FedEx is otherwise well known for its international shipping plus small businesses. These businesses would have much better solutions if they used FedEx.
For example, the difference between FedEx overnight and priority shipping is only $36.74. Regarding their ground delivery, the standard delivery time is six days, costing only $13.54.
4. DHL
DHL limits the size and weight of packages that can be delivered. Before you use the DHL shipping cost calculator, you must know the limit. The maximum weight allowed for a single package is 31.5kg, while the maximum dimensions of the package should not be more than 120 x 60 x 60cm.
DHL has four categories based on weight, ranging from 5 kg to 10 kg, 20 kg, and finally 31.5kg. So, for example, if your package is 5kg and within 13 x 9 x 2″, it will cost $150 for express shipping and $100 for standard shipping.
Part 2. Factors Affecting Shipping Cost
The following are some of the deciding factors that will help you estimate shipping cost of your package based on six critical factors. Let’s discuss each of them one by one.
1. Dimension
As we also discussed above, the dimension of your package is the first factor that goes into any carrier’s shipping cost calculator. Based on your package size, the LxWxH multiplication value will be divided by a standard DIM weight factor. DIM stands for Dimensional Weight. If the DIM weight calculated this way is higher for your package, it will be considered. The actual weight will be added to the shipping cost calculator if it is higher.
2. Weight
The heavier the item or package, the more it will cost. As discussed in the previous section, companies base their pricing on different weight categories. Once an item falls into a category, it is compared with the DIM weight. The higher the weight is considered to ascertain the shipping cost of your package.
3. Shipping Destination
After entering the dimensions and weights into the shipping cost calculator and calculating a value, the next factor to add to the price is the destination. In the US only, eight zones are defined, where the pricing increases from Zone 1 to the highest in Zone 8.
The international countries are also divided into eight zones: the EU is one, the rest of Europe is another, and finally, the farthest from the US is Australia, and Oceania is the eighth zone. The minimum pricing for these zones is 14.49 euros for the EU, considering your package is only 2kg.
After these standard rates are calculated, you must add the prices of different countries’ import taxes, exchange rates, etc. If you ship regularly to destinations outside the US, it’s better to get a promotional package from any of the many carriers we mentioned above.
4. Delivery Speed
Logically, every customer wants to get their product the next day, but additional charges are already added if they live in US zone 8. So, they must pay a premium price if they want express or next-day shipping.
Express shipping in Zone 1 is much easier because it can be done through ground shipping, which costs much less. On the other hand, express shipping in Zone 8 will require air freight, which will significantly increase the pricing.
5. Shipping Package
After adjusting the above factors into the calculation, you must also consider which shipping method you are considering. It can be air, freight, express, next day, regular, and more. Based on these aspects, the carrier service can provide you with a package that can save you more if you ship out a lot.
You must look at the history of your packages from at least six months ago to make an educated guess of which destinations are common. As a business, you can get a tailor-made package for all your packages, saving some revenue that would have been spent if you hadn’t taken this package.
6. Insurance
Insurance may not sound worth your product value if it is a generic item, but insurance is good for high-value, rare, or expensive items. This extra level of security might minimize your margin, but it will make you a loyal customer. This customer can also bring in more if they like the quality of your services.
So, if you offer insurance, consider adding insurance pricing to your product. If it is an expensive product, it is better to divide the cost between yourself and your customer.
Part 3. Shipping Cost Examples
The following are some examples of costs based on the method you choose. Here are the estimated values of the following three categories.
1. US Ground Shipping
Regarding ground shipping, USPS is the cheapest of its competitors, costing only $10.85. It can arrive at your doorstep within seven days. FedEx delivers in 6 days, one day earlier than USPS, but it will cost you almost $3 more.
If you are a small business, it is best to choose UPS as they provide a 10% discount on on-ground shipping for small businesses on the $14.09 fee delivered in 4 days.
2. US 2-day Shipping
When it comes to 2-day express shipping, the rates vary again based on which package you choose. For example, FedEx will charge you $175.76 overnight, $139.02 for priority overnight, and only $124.93 for standard overnight. UPS’s second day with Air freight is much cheaper, at only $47.70, similar to USPS.
These numbers are constantly changing; therefore, visiting each courier’s website and using the shipping cost calculator to get better values is better.
3. International Shipping
International shipping also varies by courier service, as not every courier has channels to supply worldwide. For example, FedEx is one of the longest in the game when it comes to international shipping, followed closely by UPS. To cut FedEx’s market share, UPS provides 20% discounts if you use their air freight for your package delivery.
For example, the lowest fee for international delivery to Canada for a 2kg package is $43.70, which helps you deliver smaller objects faster.
Part 4. Optimize your Shipping Cost with 3PL
As you have read in detail, many factors are involved in managing your fulfillment orders, whether within the US or around the world. The pricing can fluctuate immensely based on your packages, and you have to monitor each closely. You can use one of the shipping couriers to extract benefits, but these companies will not provide complete fulfillment services.
In that case, instead of worrying about how to use a shipping cost calculator for your shipment all the time, get in touch with NextSmartShip today. NextSmartShip is an established 3PL company that not only takes care of your packaging but can also help you complete your fulfillment.
Following are some of their best features.
- Seamlessly import your store.
- Your orders will now be visible on NextSmartShip’s portals.
- Allows for global storage warehouses.
- NextSmartShip picks your product, packs it in its collection center, and ships it to complete your order.
Conclusion
Estimating shipping cost is difficult, even after you have everything figured out regarding reducing your expenditures. Too many factors can change the costs that you must bear, and it might get too complicated for smaller businesses.
In these cases, it is better to utilize the institutional experience of a 3PL company like NextSmartShip and let it handle the complete fulfillment process. What’s more, you get the best shipping rates for both standard and express shipping. Let NextSmartShip worry about your fulfillment while you focus on growing your business.
