How to Calculate Shipping Costs for eCommerce

Calculating shipping costs is an important part of managing your online business.

Knowing how to calculate shipping costs for e-commerce helps you balance your business' budget. It also gives you a baseline for how much to charge your customers for shipping and handling. Remember to include the actual cost of your packaging materials when calculating shipping costs. Shop around before deciding on a vendor for your shipping needs. Once you choose your preferred vendor, you can save money by setting up an account and applying for bulk rates and other discounts.

Instructions

Calculating USPS Rates

1. Access the United States Postal Service website and click the "All Products & Services" link. Click "Mailing & Shipping Prices" to display an overview of domestic and international shipping rates.

2. Click "Go" to display the "Postage Price Calculator." (Click the "Business Price Calculator" tab, if it is appropriate for your business, and follow the instructions on screen instead.)

3. Enter the appropriate information, such as the country destination, your ZIP Code, the destination ZIP Code and the date and time of the mailing. Select a flat rate or the shape of your piece of mail. Enter the weight if you select the shape.

4. Click "Continue" to display the shipping rates. The page defaults to the Express Mail options with a money-back guarantee. Click the other options to see additional rates.

eBay's Shipping Calculator

1. Use eBay's Shipping Calculator, which is free for all eBay members. Sign in to your account and search for "Shipping Calculator."

2. Enter the estimated weight, package type and dimensions (optional). Select the check box if the package is an irregular shape.

3. Click "Continue," and continue entering information regarding the item to be shipped.

4. Click "Show Rates." View the list of rates for USPS and UPS service.

FedEx Rates

1. Log on to the FedEx website and choose your country.

2. Click the "Get Rates and Transit Times" link on the left.

3. Enter the destination and package information, following the on-screen instructions.

4. Click "Get quick quote" and view the rates. Click "Get detailed quote" instead and enter the additional information to get a more detailed quote.

Tips & Warnings

• Shipping costs should not be the only factor when choosing a vendor. Check delivery statistics and customer ratings. Depending on your business, it may be a good idea to choose a vendor that offers proof of delivery and insurance for your packages.

References

• United States Postal Service: Calculate Postage
• eBay: Shipping Tools
• FedEx: Get Rates & Transit Times

Resources

• United States Postal Service: Postage Price Calculator