Nowadays in order to make your business profitable, it is essential that you need to give special attention to shipping cost which is a very substantial amount. Those who are selling any kind of physical items to other cities or countries, they need to send their goods through different modes of transportation.
Many customers often prefer not to order any items from outside by looking at the shipping cost. That is the reason most of the e-commerce business try to attract their customer by mentioning free shipping.
Now, in order to know how you can reduce shipping cost, it is essential to understand what are the various factors under which shipping costs are basically calculated. Following are few factors that decides the shipping cost.
- How fast you want the delivery of item
This is very important factor that decides the shipping cost. Most of the items are carried in different modes of transportation. If you prefer fast delivery then it will be shipped by air and naturally the cost of shipping will increase. Other modes are through road or by rail which may take little longer. Certain goods are also transported through ships.
- Shipping distance
Shipping cost will very much depend upon where the merchandise is originated from and where it has to be delivered. Longer the distance the cost will also proportionally increase.
Weight of the package is also another factor that determines the shipping cost. Weight also includes the packaging of the item too. If the package is bulkier then obviously you have to pay more shipping cost.
Like weight, dimension of the package is also equally important for deciding the shipping cost. Therefore, you must know how custom boxes reduce your shipping costs.
In many cases of shipping, special handling charges are also required to be added to the shipping cost. There are few additional charges that are also needed in addition to all the above charges which are as follows:
- Pick-up charges
In order to collect the item from warehouse necessary charges are required.
- Freight forward charges
These charges are also included on your freight charges in the form of fuel surcharge or air surcharge.
- Insurance cost
There can be mishap irrespective of the reliability of your carrier that you have chosen. Therefore, it is very essential that you must insure your item.
- Shipping tracking
If you are delivering any important item then you also need to track the present location of the item while shipping, which also comes with additional cost.
- International tax
For carrying your item to outside the country certain international taxes are also charged.