How to Calculate Shipping Costs
Explains the mechanics of parcel weight calculation, courier pricing formulas, and packaging overheads so merchants price shipping accurately.
Before You Begin
- Gather product weights, outer carton dimensions, and courier rate cards.
- Have a digital weighing scale and measuring tape ready.
Step-by-Step Instructions
Step 1: Determine Actual Gross Weight
Weigh the fully packed merchandise including box, protective cushioning, and tape on a calibrated scale.
Step 2: Compute Volumetric (Dimensional) Weight
Measure box length, width, and height in centimeters, multiply them together, and divide by your courier volumetric divisor (typically 5000).
Step 3: Identify Billable Weight
Compare gross weight with volumetric weight; couriers bill according to whichever value is higher.
Step 4: Factor in Packaging and Handling Costs
Add the expense of boxes, tape, labels, and handling labor to carrier freight rates to calculate total fulfillment cost.
What You Should See
- Accurate shipping cost calculations reflecting package weight and courier rate brackets.
Common Problems & Troubleshooting
Problem: Carrier Invoice Differs from Initial Estimate
Solution: Check if the parcel was billed on dimensional weight due to an oversized outer box, and optimize package sizing.