Most eCommerce companies look at international shipping the wrong way. Shipping price is a significant expense, so, understandably, online sellers want to keep costs down.
Shipping costs are charged by the carriers, not your fulfillment warehouse, but your 3PL still plays a role in shipping costs. For instance, some 3PLs, like Ship2eu, get shipping discounts and pass those on to you.
How much does shipping cost?
Here’s a breakdown of the shipping rates you can expect, how to understand the actual Shipping pricing, and hidden expenses to include when you calculate shipping rates.
Shipping rates formula
Cost = Weight * Weight_fee + Tracking_fee
- Weight_fee
Each carrier has its own specific categories and terms to describe weight and size limitations – but these will usually include envelopes for standard A4 documents, packs for larger documents and compact items, boxes and pallets. Oversized or odd-sized packages may be accepted with a surcharge. If you’re not sure which size category your shipment falls under, it’s a good idea to consult your carrier or agent.
- Tracking_fee:
The factors that affect shipping costs include
- Service level (i.e., air express line, air standard line, post line, etc.)
- Destination country
- Actual weight/Dimensional weight
Dimensional or DIM weight is a formula that carriers use to determine the cost to ship an oversized package. DIM weight pricing allows carriers to incorporate size as well as weight into their price structure. After all, the number of packages that can fit on one truck or in one container depends as much on the size of the box as its weight.
