A Quick Guide to Calculating Courier Cost

Selling products online can be a very profitable business and today entrepreneurs all over the world are keen to start selling online so that they can make the most out of the e-commerce wave. However, selling products online requires the coordination of a few factors like good online marketing skills, a good collection of products, as well as a robust freight forwarding infrastructure.

While individuals can themselves work on the marketing and inventory part, but for the freight forwarding, they need to have a trustworthy partner onboard. However, to hire the services of a shipping and logistics company, the e-commerce company will have to bear the cost which they would need to factor in as courier services charges. Here’s a brief overview of how e-commerce companies can calculate their courier cost along with a few tips on how to save on this cost. 

Package Weight

This is apparently the most important factor that needs to be taken into consideration when calculating the courier cost. It is to be noted that the packaging also adds to the weight of the product due to which the final weight must be taken only after the product is packed. To not add to the weight of the package and thus the courier cost, people must try to use packaging materials like foam that are light weight and offer good cushioning. 

Packaging Size

This is another important aspect that needs to be taken into account while calculating the courier cost. The more space the package takes in the container in which it is to be shipped, the more expensive it would be to transport. Well, for this, there is not much that can be done as big objects even if the light in weight need to be packed in big containers. 

Destination

The destination to which the package has to be delivered also has an important role to play in determining the courier cost. It is always easier for freight forwarding companies to ship products to urban areas as they are easy to reach because courier companies have a good network in such areas. Some of the extra charges that you might have to pay are usually dependant on the destination and may include extended-area surcharges, re-delivery fees, building permit fees, inside delivery fees, liftgate fees, and more. 

Package Circumstances

Courier companies usually schedule the delivery of their products within business hours during weekdays. However, at times, customers request instant deliveries or even deliveries at specific times like midnight, weekend, or holidays. Although the courier companies comply with these requests, they usually charge extra for the service. Therefore, even the delivery timeline needs to be taken into account when calculating the courier services charges. 

Package Value

The value of the item being sent is also another important aspect to take into consideration as far as the courier cost is concerned. In most cases, the company would suggest buying insurance to cover any damages to the product in transit. Some companies also have a declared value standard coverage which can be factored in while calculating the courier cost.

Along with all the aforementioned factors, e-commerce businesses must also take into account costs associated with re-bills, re-weighs, delays, or any damages in transit when calculating the cost of sending their products by courier.