How to Calculate Shipping Charges for Your Small Business

how to calculate shipping costs for small business

Ecommerce businesses are experiencing greater and greater competition with each passing year. In order to stay ahead of their competitors, small businesses need to offer unbeatable shipping rates. However, as a business owner, you should not blindly set a standard shipping price. 

If your shipping costs are too low, your business could experience significant losses. And if they are too high, you could turn away potential customers. By properly calculating shipping costs, you can protect your bottom line and offer fee transparency to your customers, encouraging their loyalty and potentially giving them the freedom to choose from a variety of shipping methods.

Determining Shipping Costs for Your Business

How exactly can you determine the shipping costs for your products? With a few key pieces of information, you can discover the best rates for your business using a shipping calculator online. You can also present this information to a trusted shipping company, and they will help you find the most economical way to ship your items.

Factor Description
Shipping Origin and Destination Shipping fees vary based on zones; longer distances generally mean higher costs due to more resources needed such as gas, time, and personnel.
Package Weight The weight of the package influences shipping costs, including the weight of the product and the packaging materials like boxes and bubble wrap.
Dimensional Weight Shipping costs may also be calculated using dimensional weight (length x width x height), which can override actual weight if it is greater.
Shipping Method The type of shipping method offered (e.g., same-day delivery, flat-rate shipping) affects the cost. More immediate delivery options typically cost more.
Shipping Company Different shipping carriers have varying rates; choosing the right one, possibly a regional carrier for local shipments, can affect costs. Volume discounts may also be available with some carriers.
Shipping Insurance Adding shipping insurance increases costs but is crucial for shipping valuable or fragile items. This cost should be factored into the overall shipping fees.

Help for Small Businesses

Local SBDCs offer one-on-one consulting and training sessions for small business owners, which can include logistics and supply chain management. Find one near you.

Let Wanner’s Transport & Delivery Give Your Shipping a Boost 

Calculating the correct shipping costs is essential to the success of your business. We can help make the process easier with courier services you can depend on. We offer everything from 24-hour shipping and cargo van dispatch services to deliveries with flatbed trucks. Get in touch with our team today for fast and efficient shipping at affordable rates!