What is the shipping fee?
The shipping fee is the cost to ship the item to buyers. Different shipping requests result in different shipping fees
Why is there a shipping fee?
Shipping fees occurred because the shipper and buyer are in different cities or maybe different countries. The shipper has to use a courier to deliver the item to a buyer. Whatever the courier cost is the shipping fee.
There will be no shipping fee if the item you purchased is electronic. The shipper can deliver the product to you through email or you can download it on the shipper’s website.
Is Shipping fee shouldered by buyer?
The shipping fee is always shouldered by the buyer, unless the seller and buyer have a special agreement on the shipping cost.
Does shipping cost go to the seller?
Shipping cost seldom goes to the seller, except the seller agrees to pay for it.
The seller will cover the shipping cost if the buyer agrees to refund the seller. Sometimes sellers get better shipping rates by negotiating face to face with a local shipping company. By doing a favor to their buyers, the seller will cover the discounted shipping cost forefront, then the buyer refunds them. This is a win-win situation for both the buyer and the seller. The buyer can purchase more because he saves money on shipping. The seller in turn can sell more.
How to calculate shipping cost?
Your shipping cost will decide by your item’s size, weight, and how fast your want to ship it.
USPS provides a better rate than UPS if you ship small packages in the US. However, if your item is heavy and bulk, UPS will give you a reasonable rate.
Small box 8-11/16” x 5-7/16”x1-3/4” USPS flat rate is $9.45, UPS 2nd day air is $52.1, UPS Ground 4days is $48.35
Large box 12”x12-1/4”x6” USPS flat rate is $21.5, UPS 2nd day air $72.85, UPS Ground 4days is $70.05
if you ship pallets or skids for your business, you need to contact international couriers such as UPS, DHL Global forwarding for a quote. Do not forget that International shipment also involves custom, import duty, and tax fees.
How to lower shipping cost?
- Meet shipper’s amount request to reach the free shipping
- It depends on your situation, sometimes it cost less to buy more and cut shipping fee
- Pick your items at a local store or warehouse
- It is worth it by driving some miles to save shipping costs. Especially the items your purchase in bulk, heavy, or something you need to try them on. The return cost is an extra shipping cost that you need to pay. if you have to return the item.
- Use standard shipping
- if you are not in desperate degree for the item, just wait several days and use the standard shipping method. Most shippers offer free shipping on standard delivery. Standard shipping normally takes 3-7 days.
What is the cheapest way to ship?
The truth is the slowest way is the cheapest way. Ocean freight is cheaper than air freight. Freight move on rail is also cheaper than a move by truck. Standard shipping costs a lot less than expedited shipping.
Plan ahead and try to avoid expedited shipping unless you have to
Does the company make money off shipping and handling?
Have you noticed that when you purchase online, many times you are not only paying to ship and also handling fees? Recently I bought a watercolor paint calendar at Walmart.com. The calendar itself is $10.49. I was charged $5.99 handling fee, because I did not satisfy the $35 minimum amount. Costco.com also charge you $2.99 or $3.99 handling fee per item usually.
I do believe that companies make money on shipping and handling. We all shop in physical stores before COVID. We were never charged a handling fee when purchased in-store. They still need to sort the product, handle it in store. I understand the shipping charge when purchasing online, but why on earth charge handling fees when they are doing the same work.
With the labor shortage and the rise of pay, the company probably transfers all these costs to the consumers. Someone has to cover their expenses, so the company can make a profit. Since there is no set price for off shipping or handling, only the company itself knows how much margin they add on this cost.
Can sellers make money from free shipping?
Yes, they can. Even not in short term, sellers still make money in the long run.
Once the Seller reaches an economy of scale, they can get a better shipping rate from carriers than the individual. For example, the seller is a fortune 500 big manufacturer in china. They ship hundreds of containers from China to the US per month. The seller can get a real cheap rate from the carrier because of their volume. The shipping cost of each item is low because the total shipping cost is cheap, thus, the seller is willing to provide free shipping to boost their business. Free shipping in turn leads to more sales. More sales lead to more revenue for sellers.
Sometimes sellers will offer you free shipping under the condition, that you meet their minimum amount or minimum order quantity. The seller can break even on the freight cost if you purchase more from them, so they still earn money from long run.
Sometimes you get free shipping on the main part but not on any accessory items. The strategy that razor companies use is that they sell their razors to you cheap and shipping free. however, earning money from you on blades you will buy later for sure. If the business does not run non-profit. they got earn money to survive. The companies will earn money one way or another to keep their business going.
