Logistics & Shipping
How to Estimate Delivery Cost?


The Importance Of Knowing Shipping Cost

In order to ensure your business is not losing money by charging too little for shipping rates, but not charging too much and facing customer loss, it is extremely important to calculate shipping costs in a concise and thought-out way.

By knowing your shipping costs, you can then provide your consumers with an instant rate, which instantly boosts attraction and brand loyalty as many companies now provide this service as a standard service. If your firm also offers multiple shipping options at various prices this is another way to avoid the risk of cart abandonment, all of which are important for the growth and profit of your company.

>> Shipping and Logistics Costs Are Expected to Keep Rising in 2022

To calculate shipping, using a shipping calculator is the best way to find your end price.
Customers attraction and brand loyalty can be boosted by offering multiple shipping rates and factor.


The process of calculating shipping costs comes down to various factors such as weight, dimensions, destination, and more. These costs are as stated anything that is associated with moving an item from a warehouse to a customer's doorstep.

Shipping costs can also be determined by the labor needed to pick and pack items, importing and export fees, and courier services. In terms of customer satisfaction and company attraction, most retailers will aim to get the allocated shipment to their end destination in the quickest time possible and for the lowest price.

Global Shipping

If your company is shipping internationally then the need for factoring in landed cost and the rate for shipping to a global country is advised. Some other factors that would need to be addressed when shipping globally are also duties and taxes, currency conversion, transportation fees, and other related services.

Agreements such as splitting the cost of import between the buyer and seller should be made before shipping is in action, this can help save any unneeded problems and risks when delivering such services.

Shipping Insurance

Shipping insurance is essential but can be a factor that contributes to shipping rates. However, it is safer to have protection against any damaged, stolen, or lost goods during transit especially if they are valuable and personal. The cost of buying shipping insurance would not be as harsh to your margins compared to that of a damaged or lost product, that is why it is always better to be safe and secure your company services.

If your company wants to build profit as much as possible it is advised to compare shipping insurance between third-party services and couriers to try and get the best deal out there.

>> How To Get the Lowest Possible Shipping Freight Quote?

To calculate shipping, using a shipping calculator is the best way to find your end price.
To calculate shipping, using shipping calculator is the best way to find your end way.

Weight Of The Package

Shipping costs can be impacted based on the weight of the product you are shipping. In order to find your final price simply calculate the weight of the whole package, not just the item you are shipping, then use a shipping calculator to find your rate.

If you are using packaging to protect the item you are shipping this would add to the weight, but in retrospect also be a benefit when avoiding damaged goods.


The dimensional weight of the package you are sending is calculated through length x width x height and is a great way of calculating the shipment price for oddly shaped and larger items. In order to predict the space taken up in a delivery truck or related transportation, services typically add the weight and dimensions of the package together to find a size and price.

In order to reduce cost, buying a variety of shipping boxes will enable less space to be taken up when shipping different shaped packages, thus being a benefit for the company and less of a factor when contributing to cost.


Each method of calculating shipping costs has its pros and cons and it is dependent on what you are shipping as to which will work best for your profits and the company itself.

Calculated Shipping

The easiest way of finding out shipping rates is calculated shipping. In this process, simply measure the weight and dimensions of the package you are sending, this is then calculated through the outcome of weight and dimensions plus the location of the customer you are sending to.

This is an extremely beneficial method as consumers have a personalized quote based on their own product they are shipping but is time-consuming when having to calculate the price for up to thousands of different parcels.

Flat-rate Shipping

Flate rate shipping price is a universal price regardless of the type of shape and size of the package being sent out.

The benefits of this method are that consumers can buy as much as they want and ship all for the same price, this practice is popular with smaller businesses but larger ones may face the difficulties of having to average out this price throughout their entire company shipping costs.

Free Shipping

The use of free shipping is an extremely popular service amongst customers and is offered by a large portion of retailers out there. This method is a great way to increase sales as well as build brand loyalty, which in the long run can have major benefits for companies.

Disadvantages may arise for companies when choosing this method as in order to do so retailers would have to build the price of shipping into the product cost which is sometimes unattractive to customers. As well as this companies would have to absorb the cost of this which could significantly reduce business margins as a whole.

However, in light of this, it is also known that if free shipping is displayed regularly throughout a website then most customers would not think twice about spending more when it comes to items.

In conclusion, there are various things to think about when deciding not only how to calculate shipment prices, but how to charge to not only keep customers coming back but also increase margins within a business. Sometimes involving third-party services to help with this can be a weight off of a companies shoulders, and also the best way to keep a happy medium between consumer and company. VICO LOGISTICS will give you an instant estimate, contact us about your shipment now! 

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