{"id":1387,"date":"2022-04-19T15:11:18","date_gmt":"2022-04-19T15:11:18","guid":{"rendered":"https:\/\/www.shipbob.com\/uk\/ecommerce-shipping\/shipping-handling\/"},"modified":"2025-10-28T16:25:50","modified_gmt":"2025-10-28T16:25:50","slug":"shipping-handling","status":"publish","type":"page","link":"https:\/\/www.shipbob.com\/uk\/ecommerce-shipping\/shipping-handling\/","title":{"rendered":"Shipping and Handling"},"content":{"rendered":"\n<section class=\"wp-block-shipbob-blocks-section-hero-standard-form hero-standard\"><div class=\"container row\"><div class=\"col hero-standard-content\"><h1 class=\"hero-standard-title \"><strong>Guide to Shipping &amp; Handling<\/strong><\/h1>\n<p>With the ever-present speed and convenience of online shopping and online shopping, not many people stop to think about the number of actual shipping touchpoints that are actually required to get a package to their home.<\/p>\n\n\n\n<p>Those touchpoints are pieces of the overall shipping and handling process. When asking \u201cHow much does shipping cost?\u201d it\u2019s important to understand that shipping and handling refers to more than just delivery costs.<\/p>\n\n\n\n<p>But knowing how much to charge customers for shipping and handling can be very challenging. Read on to learn how to calculate shipping and handling costs and and manage operations, whether in-house or through a&nbsp;<a href=\"https:\/\/www.shipbob.com\/3pl\/\" target=\"_blank\" rel=\"noopener noreferrer\">3PL<\/a>.\n&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-so-what-do-you-want-to-learn\">So, what do you want to learn?<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#learn\">Learn more about shipping and handling<\/a><\/li>\n\n\n\n<li><a href=\"#improve\">Improve your ecommerce shipping strategy<\/a><\/li>\n\n\n\n<li><a href=\"#calculate\">How to calculate shipping costs<\/a><\/li>\n\n\n\n<li><a href=\"#conclusion\">Conclusion and FAQs<\/a><\/li>\n<\/ul>\n<\/div><div class=\"col hero-standard-form offset-1  \"><div class=\"card hero-home-customer-card form-card\"><h3 class=\"form-title\"><strong>Request Fulfilment Pricing<\/strong><\/h3><h3 class=\"h4 form-subtitle\"><\/h3><p class=\"form-copy\"><\/p><div class=\"card-body form-2c853f60-8374-4dbc-937d-1fecb0e842f2\" data-controller=\"form-controller\" data-form-controller-form-id-value=\"2c853f60-8374-4dbc-937d-1fecb0e842f2\" data-form-controller-form-container-query-value=\"form-2c853f60-8374-4dbc-937d-1fecb0e842f2\"><\/div><p class=\"form-note\">We\u2019ll get back to you within 24 hours. <a href=\"\/privacy-policy\/\">Privacy Policy<\/a><\/p><\/div><\/div><\/div><\/section>\n\n\n\n<p><a id=\"learn\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-shipping-and-handling\">What is shipping and handling?<\/h2>\n\n\n\n<p>Shipping and handling is the process of preparing and packing an order and then sending it to a customer. You will often see shipping and handling as a set of fees incurred on top of the order value and taxes. It covers&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/logistics-costs\/\" target=\"_blank\" rel=\"noopener noreferrer\">logistics costs<\/a>&nbsp;like labour, packing supplies,&nbsp;<a href=\"https:\/\/www.shipbob.com\/warehouse-operations\/inventory-storage\/\">inventory storage<\/a>, transportation, and delivery.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Shipping vs. handling: what\u2019s the difference?<\/h3>\n\n\n\n<p>While shipping and handling often get grouped together, individually they refer to two different components of the overall shipping and fulfilment costs associated with delivering an order: shipping is the postage or the cost of the shipping label for the package (unique to the weight, dimensions, destination, and carrier\/service used), and handling is the labour needed to pick, pack, and transport the package.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Shipping vs. mailing<\/h3>\n\n\n\n<p>In the simplest form, shipping refers to transporting packages, where mailing is used to send letters and envelopes through the post office. Given the larger nature of packages when shipping, you need to drop the packages off with a carrier or have them picked up from your warehouse; But with mailing, you can slip your paper-based articles in a post box or even in your mailbox for pickup. Most of the time, these services are performed by different couriers; However since mail is dealt with at a federal level, many national post services have both mailing and shipping services available.&nbsp;<\/p>\n\n\n\n<p>Here are a few examples illustrating the differences between shipping and mailing:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You\u2019d need to ship inventory from your manufacturer to your fulfilment centre (likely a freight shipment).<\/li>\n\n\n\n<li>You\u2019d need to ship a direct-to-consumer package of a pair of shoes from your fulfilment centre to the end customer (likely a parcel shipment).&nbsp;<\/li>\n\n\n\n<li>You need to mail a birthday card through your local post (in an envelope with postage).<\/li>\n<\/ul>\n\n\n\n<p><a id=\"improve\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-you-can-t-overlook-shipping-and-handling\">Why you can\u2019t overlook shipping and handling<\/h2>\n\n\n\n<p>Shipping and handling should be just as important to you as it is for your customers. Between the costs incurred, your reputation and ability to meet customer expectations, and keeping up with the competition, shipping and handling has a major effect on customer acquisition and loyalty.<\/p>\n\n\n\n<p><a id=\"improve\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-top-4-factors-that-go-into-forming-a-shipping-and-handling-strategy\">Top 4 factors that go into forming a shipping and handling strategy<\/h2>\n\n\n\n<p>With shipping and handling being one of the most important pillars of any&nbsp;<a href=\"https:\/\/whatagraph.com\/blog\/articles\/ecommerce-kpis\" rel=\"noopener noreferrer\">ecommerce business<\/a>, there are many considerations to think through. Getting it wrong can result in abandoned carts, frustrated customers, a drop in sales totals, bad reviews, and lots of dollars lost. Here are the top factors that influence your shipping and handling structure (and pricing).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-capabilities-and-resources\">1. Capabilities and resources<\/h3>\n\n\n\n<p>The size of your business and the resources required and available to you directly affect your shipping and handling cost model.<\/p>\n\n\n\n<p>If you choose&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/self-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">self-fulfilment<\/a>&nbsp;and manage shipping and handling yourself, will you run operations out of your home, purchase land, lease a warehouse? Your current order volume, number of SKUs, and growth projections are good places to start.<\/p>\n\n\n\n<p>Low order volume will make it cost-effective to keep shipping and handling in-house, as opposed to outsourcing. You likely won\u2019t need a full inventory or&nbsp;<a href=\"https:\/\/www.shipbob.com\/warehouse-management\/warehouse-management-system-wms\/\" target=\"_blank\" rel=\"noreferrer noopener\">warehouse management system<\/a>&nbsp;to track operations until your business grows to the point where you need to hire people to help pack boxes.<\/p>\n\n\n\n<p>A high SKU count may lead to high&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/warehousing\/\" target=\"_blank\" rel=\"noopener noreferrer\">warehousing and storage costs<\/a>&nbsp;if you\u2019re not turning products over quickly.<\/p>\n\n\n\n<p>Regardless, if your order volume picks up or you\u2019ve reached an inflection point, you\u2019ll need a solution that will scale with you, whether you&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/3pl-or-invest-warehouse-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">invest in the infrastructure or outsource shipping and handling<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-geographic-constraints\">2. Geographic constraints<\/h3>\n\n\n\n<p>Understanding where your orders are shipping to can help to identify where you should be shipping from.<\/p>\n\n\n\n<p>When you manage shipping and handling yourself, you\u2019re limited to storage and shipping from your location alone. If you expand operations or outsource shipping and handling, you\u2019ll want to carefully position your operations geographically to&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/reduce-shipping-costs\/\" target=\"_blank\" rel=\"noopener noreferrer\">reduce your average shipping cost<\/a>&nbsp;and time in transit.<\/p>\n\n\n\n<p>The farther the distance or higher the&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/shipping-zones\/\" target=\"_blank\" rel=\"noopener noreferrer\">shipping zone<\/a>&nbsp;a package is sent to, the more expensive postage will be. While it might seem cheaper to pay a couple extra dollars to ship a package than to operate out of multiple locations, that extra postage adds up. If you multiply the cost savings out across all of your orders, it can result in much higher shipping and handling costs for you and your customers.<\/p>\n\n\n\n<p>Shipping from a central location or from both coasts can help you more efficiently reach your customers. As your order volume increases and you ship from additional locations in different geographic regions, you can further <a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/reduce-shipping-costs\/\">reduce shipping and handling costs<\/a> and automatically have orders shipped from the facility that\u2019s closest to the shipping destination.<\/p>\n\n\n\n<p>Shipping to shorter distances also allows you to leverage ground shipping rather than more costly air shipping. The same goes for&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/shipping-big-cities-urban-fulfillment-centers\/\" target=\"_blank\" rel=\"noopener noreferrer\">shipping from urban areas<\/a>&nbsp;rather than less populated rural locations, as your inventory is already near the end customer.<\/p>\n\n\n\n<p>Finally, if you have a global customer base, you\u2019ll want to access affordable&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/international-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">international shipping<\/a>&nbsp;rates. You may even consider working with a&nbsp;<a href=\"https:\/\/www.shipbob.com\/global-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">global fulfilment<\/a>&nbsp;company like ShipBob with locations across the globe.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-products-sold\">3. Products sold<\/h3>\n\n\n\n<p>There are several product attributes that affect your overall&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-logistics\/inbound-outbound-logistics\/\">inbound and outbound logistics<\/a>&nbsp;strategy.<\/p>\n\n\n\n<p>First, the product itself: Is it&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/shipping-hazardous-materials\/\" target=\"_blank\" rel=\"noopener noreferrer\">HAZMAT<\/a>, a dangerous good; made-to-order or customised;&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/oversized-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">oversized<\/a>&nbsp;and\/or heavy;&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/how-to-ship-fragile-items\/\" target=\"_blank\" rel=\"noopener noreferrer\">fragile<\/a>; temperature-sensitive or requires refrigeration; etc.? The more special requirements your products have, the stricter you\u2019ll have to be with storage, packaging, and shipping and handling. You may need a more hands-on approach to your entire&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/retail-supply-chain\/\" target=\"_blank\" rel=\"noopener noreferrer\">retail supply chain<\/a>.<\/p>\n\n\n\n<p>Next, how much your product(s) cost to manufacture, how much you charge for each item, and whether items are frequently purchased together will help you shape a shipping and handling strategy. Inexpensive items (e.g., $5) with a shipping and handling charge that costs as much as the product itself may deter people from completing a purchase.<\/p>\n\n\n\n<p>If shoppers tend to purchase several items together at once, you may consider bundling products or offering a minimum spend threshold as an incentive to qualify for discounted shipping.<\/p>\n\n\n\n<p>Finally, highly seasonal products will lead to very busy months operationally followed by lulls during which little money comes in at all. If your sales cycle fluctuates, leasing a warehouse can lead to cash flow problems and laying off a seasonal workforce.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-tech-stack\">4. Tech stack<\/h3>\n\n\n\n<p>Integrating your ecommerce platform and any marketplaces you sell on with your shipping and handling solution can streamline and&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/automated-shipping\/\">automate shipping<\/a>&nbsp;and order processing.<\/p>\n\n\n\n<p>Based on your sales channels and the shipping and handling solution you use, you may encounter limitations or need to hire developer resources. Some basic functionality should include:<a id=\"calculate\"><br><\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Alerting shipping and handling teams as soon as an order is placed<\/li>\n\n\n\n<li>Sending tracking info back to the online store to share with customers<\/li>\n\n\n\n<li>Gaining&nbsp;<a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-tracking\/\" target=\"_blank\" rel=\"noopener noreferrer\">full visibility into inventory levels on hand<\/a>&nbsp;across shipping locations<\/li>\n\n\n\n<li>Preventing&nbsp;<a href=\"https:\/\/www.shipbob.com\/inventory-kpis\/stockout-costs\/\" target=\"_blank\" rel=\"noopener noreferrer\">stockouts<\/a>&nbsp;by using a&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/reorder-point-formula\/\" target=\"_blank\" rel=\"noopener noreferrer\">reorder point formula<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-challenges-to-shipping-and-handling\">Challenges to shipping and handling<\/h2>\n\n\n\n<p><span>Shipping and handling is a function that many young businesses spend a lot of time on. However, most ecommerce businesses don\u2019t start their business with thoughts like, \u201cI can\u2019t wait to pack boxes all day!\u201d<\/span><\/p>\n\n\n\n<p><span>The reality is many businesses don\u2019t realize the countless hours they spend on shipping and handling. But those who do and see it\u2019s not the best use of their time, often find themselves in the position of wanting to outsource fulfilment.&nbsp;<\/span><\/p>\n\n\n\n<p><span>Partnering with a 3PL is the best way brands stop spending their precious time on shipping and handling (and being glued to the computer every time an order comes in). This eliminates tasks like packing boxes, running to the post office or local UPS store, stepping out to get more packing supplies and printer ink, and looking into carrier issues.&nbsp;<\/span><\/p>\n\n\n\n<p><span>Outsourcing shipping and handling also gives brand operators more freedom to take vacations, invest time in finding new customers, offering great customer service, and truly growing their business. The difference between reactive shipping and handling tasks, to proactive growth is the difference between a brand that stays small and one that scales into a more successful operation.&nbsp;<\/span><\/p>\n\n\n\n<p><span>3PLs like ShipBob not only perform shipping and handling but provide brands with <\/span><a href=\"https:\/\/www.shipbob.com\/blog\/new-free-analytics-reporting-tool\/\"><span>data and analytics<\/span><\/a><span> to make more strategy decisions across their sales channels and supply chain with answers to questions like:&nbsp;<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span>How many of my orders are fulfilled on time (and what\u2019s the breakdown of orders placed, processed, and shipped)?<\/span><\/li>\n\n\n\n<li><span>How many and which orders can\u2019t be fulfilled because of inadequate stock levels?<\/span><\/li>\n\n\n\n<li><span>How many days on average does it take for my orders to be delivered?<\/span><\/li>\n\n\n\n<li><span>Which shipping methods do my customers choose most often?<\/span><\/li>\n\n\n\n<li><span>How much are my customers spending by shipping method?<\/span><\/li>\n\n\n\n<li><span>What is my average shipping cost per shipping method?<\/span><\/li>\n\n\n\n<li><span>How long does it take my orders to be delivered by shipping method?<\/span><\/li>\n\n\n\n<li><span>Which orders haven\u2019t been delivered yet?<\/span><\/li>\n\n\n\n<li><span>Which states do I ship the most orders to?<\/span><\/li>\n\n\n\n<li><span>How many days do I have left until a SKU will be out of stock?<\/span><\/li>\n\n\n\n<li><span>How often is each product sold across channels?<\/span><\/li>\n\n\n\n<li><span>If I run a flash sale on my site, how will this affect my available inventory levels?<\/span><\/li>\n\n\n\n<li><span>How does product demand compare to previous periods?<\/span><\/li>\n\n\n\n<li><span>How are my sales affected by different seasons and months?<\/span><\/li>\n\n\n\n<li><span>Which items are not generating sales and incurring high ecommerce warehousing fees?<\/span><\/li>\n\n\n\n<li><span>What is my average storage <a href=\"https:\/\/www.shipbob.com\/blog\/cost-per-unit\/\">cost per unit<\/a>?<\/span><\/li>\n\n\n\n<li><span>What is the average cart value and shipping cost by shipping method and order?<\/span><\/li>\n\n\n\n<li><span>How much money would I save on shipping if I changed the fulfilment centre locations my inventory is in?<\/span><\/li>\n\n\n\n<li><span>How should I distribute my inventory across ShipBob\u2019s fulfilment network?<\/span><\/li>\n\n\n\n<li><span>Where are my customers shipping to most often?<\/span><\/li>\n<\/ul>\n\n\n\n<p><a id=\"calculate\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-calculate-shipping-and-handling-costs-in-4-steps\">How to calculate shipping and handling costs in 4 steps<\/h2>\n\n\n\n<p>There are many factors that go into&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/calculate-shipping-costs\/\" target=\"_blank\" rel=\"noopener noreferrer\">calculating shipping costs<\/a>. In addition to your internal capabilities and resources, geographic constraints, product attributes and requirements, and technology, you need to know your delivery methods, shipping rates, shipping supplies costs (find out more about getting&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/free-shipping-supplies\/\" target=\"_blank\" rel=\"noopener noreferrer\">free shipping supplies<\/a>&nbsp;here) and handling fees to calculate your costs and determine how to charge for shipping.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-determine-your-delivery-time\">1. Determine your delivery time<\/h3>\n\n\n\n<p>The delivery methods you offer customers will impact cutoff times, shipping rates, and conversions. Some consumers will inevitably need certain products in their hands faster than others, but it\u2019s still worth testing your offerings \u2014 from standard ground services to 2-day delivery to&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/overnight-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">overnight shipping<\/a>, you may be surprised to learn what resonates with your customer base.<\/p>\n\n\n\n<p>Of course, faster delivery methods become more expensive as zones or distances increase. If you\u2019re only shipping from one location, only orders shipped to nearby destinations can be delivered in two days via ground. Orders shipping to farther destinations will have to go out via air shipping to guarantee 2-day delivery.<\/p>\n\n\n\n<p>That\u2019s why distributing your inventory and shipping from multiple regions can save you money and meet customer expectations without charging more for&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/expedited-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">expedited shipping<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-get-estimated-costs\">2. Get estimated costs<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/small-business-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">Shipping for small businesses<\/a>&nbsp;can be expensive. Minimising your costs by working with different shipping couriers can help you compare rates for the best value. You may even qualify for greater discounted shipping rates as you ship a higher order volume.<\/p>\n\n\n\n<p>USPS, FedEx, and UPS use&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/dimensional-weight-explained\/\" target=\"_blank\" rel=\"noopener noreferrer\">dimensional weight<\/a>&nbsp;to calculate shipping charges. You will be charged for whichever is greater: the actual weight of the package or its DIM weight. Shipping couriers also use shipping zones to calculate rates based on where your package is shipped from.<\/p>\n\n\n\n<p>So, two different points of origin shipping to the same destination can be shipped to different predetermined zones and be priced differently.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-determine-if-any-shipping-costs-will-be-factored-into-the-product-cost\">3. Determine if any shipping costs will be factored into the product cost<\/h3>\n\n\n\n<p>With so many factors impacting shipping costs, how much you charge for shipping and handling can be very different from what other ecommerce businesses choose to charge.<\/p>\n\n\n\n<p>In general, more expensive products can absorb the cost of shipping into the product price if you wish to waive shipping and handling fees for your customers to reduce dropoff.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>For example, building a $5 shipping cost into a $100+ product may not seem like that much more money for someone who is already willing to pay $100+. However, this strategy doesn\u2019t work as well for cheaper items that compete on price, or extremely&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/shipping-heavy-items\/\" target=\"_blank\" rel=\"noopener noreferrer\">heavy items that are generally very expensive to ship<\/a>.<\/p>\n\n\n\n<p>Think about it: If you always get your favorite bottle of shampoo for $5 and you see it offered for $10, you will likely look elsewhere before you even notice that shipping is free delivery is an option.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-add-handling-costs\">4. Add handling costs<\/h3>\n\n\n\n<p>When you receive a fulfilment quotation, the shipping company accounts for handling costs which cover the operations within a&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/differences-warehouse-fulfillment-center\/\" target=\"_blank\" rel=\"noopener noreferrer\">fulfilment centre<\/a>.<\/p>\n\n\n\n<p>In addition to staff labour, there are indirect costs to support the infrastructure such as shelving units, pallet racks, forklifts, conveyors, warehouse management systems, taxes, utilities, office supplies, benefits, workers\u2019 comp, liability insurance, licences, packing supplies, labels, printers, and more.<\/p>\n\n\n\n<p>With so many variables, you may be wondering, \u201cHow much should I charge for shipping and handling?\u201d<\/p>\n\n\n\n<p>While the exact per-order handling fee can be difficult to calculate, you can create rough estimates by calculating your monthly operational expenses including warehouse labour, rent, and packing supplies. Then, divide this number by your average monthly shipping volume.<\/p>\n\n\n\n<p>For example, if your total monthly operational fees come to $5,000 and you ship 1,000 orders per month, your per-order handling cost comes to $5.<\/p>\n\n\n\n<p>Of course, this is an oversimplified approach to calculating handling costs but can help you keep tabs on your margin. For example, if a customer spends $50 before fees and taxes, the cost of shipping is $9, and your per-order operational or handling expense is $5, then the total shipping and handling cost for the order is $14, or 28% of the order value.<\/p>\n\n\n\n<p>The shipping cost will change based on package weight, shipping carrier, service chosen, and shipping destination, so you may choose to use several figures in these calculations.<\/p>\n\n\n\n<p>While it may seem as though you can save money by using&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/in-house-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">in-house fulfilment<\/a>, the truth is that managing, shipping, and handling yourself,&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/hidden-costs-self-fulfillment-beyond-shipping-postage\/\">there are many hidden costs<\/a>, even a&nbsp;<a href=\"https:\/\/www.shipbob.com\/certificate-of-mailing\/\" target=\"_blank\" rel=\"noopener noreferrer\">certificate of mailing<\/a>&nbsp;can be over $1 per package shipped,&nbsp; including your time spent fulfilling orders \u2014 a reason many companies choose to outsource shipping and handling.<\/p>\n\n\n\n<p>If you work with a third party, you can calculate a similar number by looking at all&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/fulfillment-costs\/\" target=\"_blank\" rel=\"noopener noreferrer\">fulfilment costs and fees<\/a>&nbsp;including onboarding or implementation, inventory receiving, warehousing, support, pick\/pack, kitting, packaging, and shipping.<\/p>\n\n\n\n<p>Below is a table of the costs associated with shipping and handling to give you a more clear idea of what costs you can expect and may need to add up to calculate the total shipping and handling cost for an order.<\/p>\n\n\n\n<p>Note: If you work with a fulfilment company like ShipBob, there may be fewer line items to add up, as they charge one all-in fulfilment cost that bundles all of these together for a more easy-to-calculate, all-encompassing cost.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><b>Cost<\/b><\/td><td><b>Description<\/b><\/td><\/tr><tr><td><span>Packaging Materials&nbsp;&nbsp;<\/span><\/td><td><span>How much it costs for the box or mailer, tape, dunnage, and any other materials needed to warp the box into a ship-ready package<\/span><\/td><\/tr><tr><td><span>Labor to pick and pack the order&nbsp;<\/span><\/td><td><span>How much it costs to have the order picked (retrieved from its inventory location) and packed (assembled into a ship-ready package)<\/span><\/td><\/tr><tr><td><span>Shipping Cost<\/span><\/td><td><span>How much it costs to have the carrier transport the package from Point A to Point B (this is also the label that gets generated)&nbsp;<\/span><\/td><\/tr><tr><td><span>Overhead<\/span><\/td><td><span>(Optional) The indirect costs some companies use in the shipping and handling equation to allocate storage, infrastructure, equipment, hardware, software, printers and ink, label paper, and other supplies that are required to get a package shipped<\/span><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3-shipping-options-that-customers-expect\">3 shipping options that customers expect<\/h2>\n\n\n\n<p>It\u2019s unsurprising that&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/shipping-strategy-can-improve-customer-loyalty\/\" target=\"_blank\" rel=\"noopener noreferrer\">delivery methods can improve customer loyalty<\/a>. But if your shipping and handling costs cut into your margins, you\u2019ll struggle to stay profitable. Ecommerce brands must strive to offer attractive shipping options that also make sense for their ecommerce business models.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-flat-rate-shipping\">1. Flat rate shipping<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/flat-rate-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">Flat-rate shipping<\/a>&nbsp;refers to charging the same fixed shipping rate for every order. Most ecommerce platforms let you customise the shipping rate to the country, weight range, or order total to better reflect the actual cost.<\/p>\n\n\n\n<p>Flat rate shipping should be the blended average cost across orders. That said, the shipping cost of some orders will not be 100% recovered while others will be overcharged or abandoned altogether due to shipping and handling costs being too high.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-two-day-shipping\">2. Two-day shipping<\/h3>\n\n\n\n<p>Delivery methods are trending faster and faster. Many online businesses rely on&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/guide-offering-affordable-2-day-shipping\/\" target=\"_blank\" rel=\"noopener noreferrer\">2-day shipping<\/a>&nbsp;to keep their customers happy, and some are even moving into&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/same-day-shipping-delivery\/\" target=\"_blank\" rel=\"noopener noreferrer\">same-day delivery<\/a>.<\/p>\n\n\n\n<p>Two-day shipping is achieved by either expedited air shipping, which is needed for packages coming from overseas or the other side of the country, or ground shipping, which is ideal for shipments travelling a shorter distance and is less expensive. Many sellers ship from multiple regions of the country via ground shipping to keep 2-day shipping costs low.<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/resources.shipbob.com\/shipbob-2-day-express-booklet\"><strong>How to Save on 2-Day Shipping<\/strong><\/a><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-free-shipping\">3. Free shipping<\/h3>\n\n\n\n<p>Offering&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/how-to-offer-free-shipping-ecommerce-store\/\" target=\"_blank\" rel=\"noopener noreferrer\">free shipping<\/a>&nbsp;is an actionable way to reduce&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/cart-abandonment\/\" target=\"_blank\" rel=\"noopener noreferrer\">shopping cart abandonment<\/a>. From a seller\u2019s standpoint, it\u2019s achieved profitably a few different ways:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Including the shipping cost in the product price and offering sitewide free shipping<\/li>\n\n\n\n<li>Requiring a minimum amount of money to be spent (greater than the&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/average-order-value\/\" target=\"_blank\" rel=\"noopener noreferrer\">average order value<\/a>) in exchange for free shipping<\/li>\n\n\n\n<li>Loyalty programs and subscriptions that take an annual fee in exchange for free shipping on orders (e.g, Amazon Prime)<\/li>\n<\/ul>\n\n\n\n<p>If you offer free shipping, make sure to promote it everywhere, as this can be a&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/shipping-ecommerce-marketing-strategy\/\" target=\"_blank\" rel=\"noopener noreferrer\">strong marketing tool<\/a>. However, keep track of any increases in returned items to see whether money is ultimately recovered from the free shipping promotion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-shipping-carriers\">Shipping couriers<\/h2>\n\n\n\n<p>If you\u2019re overseeing shipping and handling for your ecommerce business, you\u2019ll want to have a thorough understanding of how the different couriers charge for each service and delivery method.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-usps\">USPS<\/h3>\n\n\n\n<p>USPS offers what are often the cheapest prices for ground shipping because they already run local residential routes daily. To calculate USPS shipping costs, choose from their domestic, international, and business&nbsp;<a href=\"https:\/\/www.usps.com\/nationalpremieraccounts\/calculaterates.htm\" rel=\"noopener noreferrer\">calculators here<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-ups\">UPS<\/h3>\n\n\n\n<p>UPS has several shipping services to choose from across a variety of shipping destinations and transit times. Use UPS\u2019s&nbsp;<a href=\"https:\/\/www.theupsstore.com\/tools\/estimate-shipping-cost\" rel=\"noopener noreferrer\">Estimate Shipping Cost calculator<\/a>&nbsp;to enter details about your shipments and receive accurate pricing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-fedex\">FedEx<\/h3>\n\n\n\n<p>FedEx\u2019s pricing ranges based on delivery speeds. Calculate FedEx shipping costs and transit times by entering package details using their&nbsp;<a href=\"https:\/\/www.fedex.com\/ratefinder\/home\" rel=\"noopener noreferrer\">Rate Finder tool<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-dhl\">DHL<\/h3>\n\n\n\n<p>DHL is best known for their international shipping capabilities. Calculate export and import rate and transit times by using DHL\u2019s&nbsp;<a href=\"https:\/\/ratequote.dhl-usa.com\/\" rel=\"noopener noreferrer\">Rate Quote and Transit Time tool<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-outsource-your-shipping-and-handling\">How to outsource your shipping and handling<\/h2>\n\n\n\n<p>Your shipping and handling strategy will change as your business grows. The effort and costs associated with your shipping and handling fee strategy in the early days will be very different from how it\u2019s managed as you scale the number of shipping articles your ecommerce store processes on a weekly basis.<\/p>\n\n\n\n<p>That\u2019s why many ecommerce businesses turn to a third party to handle the important facts of your unique shipping preferences.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-to-outsource\">When to outsource<\/h3>\n\n\n\n<p>There is no one \u201cright time\u201d to&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/outsourced-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">outsource shipping and handling<\/a>, but here are some tips to know when you may be ready to explore this option:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You don\u2019t have room to store inventory<\/li>\n\n\n\n<li>Your total cost of shipping and handling is higher than the goods sold<\/li>\n\n\n\n<li>You don\u2019t have time to truly run your business because you spend all your time on&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/retail-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">retail fulfilment<\/a><\/li>\n\n\n\n<li>You don\u2019t want to purchase land or lease an&nbsp;<a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-warehousing\/\" target=\"_blank\" rel=\"noopener noreferrer\">ecommerce warehouse<\/a><\/li>\n\n\n\n<li>Your sales are increasing and you\u2019re forecasting major growth<\/li>\n\n\n\n<li>You want to expand into new markets<\/li>\n\n\n\n<li>You want to meet customer expectations around affordable 2-day shipping<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-you-get-with-a-3pl\">What you get with a 3PL<\/h3>\n\n\n\n<p>In addition to not having to manage a warehouse, spend countless hours on&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/\" target=\"_blank\" rel=\"noopener noreferrer\">ecommerce fulfilment<\/a>, or run operations yourself, there are many benefits a 3PL offers that would be difficult or costly to replicate on your own.<\/p>\n\n\n\n<p>Most 3PLs today offer the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The&nbsp;<a href=\"https:\/\/www.shipbob.com\/3pl\/fulfillment-process\/\" target=\"_blank\" rel=\"noopener noreferrer\">order fulfilment process<\/a>&nbsp;at scale, including storage, picking, and packing<\/li>\n\n\n\n<li>Discounted rates due to high shipping volume across thousands of clients<\/li>\n\n\n\n<li>Access to vetted partners such as custom packaging providers, marketing agencies, and more<\/li>\n\n\n\n<li>Integrated technology that automatically syncs with your sales channels<\/li>\n\n\n\n<li>Ability to&nbsp;<a href=\"https:\/\/www.shipbob.com\/product\/2-day-express\/\" target=\"_blank\" rel=\"noopener noreferrer\">reduce abandoned carts through affordable 2-day shipping<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.shipbob.com\/inventory-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">Inventory management<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/www.shipbob.com\/inventory-management\/inventory-forecasting\/\" target=\"_blank\" rel=\"noopener noreferrer\">inventory forecasting tools<\/a>&nbsp;with insights into real-time levels<\/li>\n<\/ul>\n\n\n\n<p><a id=\"conclusion\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\">Conclusion<\/h2>\n\n\n\n<p>Shipping and handling are critical pieces of your logistics strategy and overall ecommerce business. From offering the right delivery methods to obtaining favorable shipping rates, there\u2019s a lot that goes into keeping customers happy and costs low. If you\u2019re interested in learning more about handing off shipping and handling to a third party, get in touch with&nbsp;<a href=\"https:\/\/www.shipbob.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">ShipBob<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"ShipBob Fulfillment Center Guided Tour - 3D 360\u00b0 VR Video\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/YdTbM4XlizY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Shipping and handling FAQs<\/h2>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What does CIF mean?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>In the world of international ocean <a href=\"https:\/\/www.shipbob.com\/blog\/introduction-freight-shipping\/\">freight shipping<\/a>, CIF refers to cost, insurance, and freight. The seller is responsible for all three components that make up CIF, up until the point of the shipment arriving at the destination port. At this point, the buyer takes control and handles import fees and customs, and any further transportation costs.<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">What is a shipping and handling fee?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>A shipping and handling fee is the blended cost to prepare and transport a package. Rather than having separate line items for picking, packing, label generation, fuel charges, packaging materials, and other fees associated with fulfilment, a single shipping and handling fee helps simplify the sum of all parts.<\/p>\n\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-shipbob-blocks-single-faq single-faq direction-col\" data-controller=\"faq-controller\" data-faq-controller-open-value=\"true\"><div class=\"single-faq-title-contianer\"><h4 class=\"single-faq-title\">How do you calculate shipping and handling fees?<\/h4><div class=\"single-faq-expand\" data-faq-controller-target=\"expand\"><img decoding=\"async\" src=\"\/wp-content\/themes\/shipbob-2022\/resources\/svg\/plus-solid.svg\" \/><\/div><\/div><div class=\"single-faq-childs\" data-faq-controller-target=\"answer\"><div>\n\n<p>Calculating shipping and handling fees involves adding up the labour costs associated with picking, packing, and other actions carried out within a warehouse, as well as the cost of the shipping label (and any surcharges charged by the carrier), the packaging materials used to protect the package, and any other add-ons such as <a href=\"https:\/\/www.shipbob.com\/blog\/shipping-insurance\/\">shipping insurance<\/a>. The most variable cost of all is the shipping cost, which takes several factors into account including weight and dimensions of the package itself, the destination it\u2019s shipping to, and the carrier and services used.<\/p>\n\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is shipping and handling? Shipping and handling is the process of preparing and packing an order and then sending it to a customer. You will often see shipping and handling as a set of fees incurred on top of the order value and taxes. It covers&nbsp;logistics costs&nbsp;like labour, packing supplies,&nbsp;inventory storage, transportation, and delivery. [&hellip;]<\/p>\n","protected":false},"author":149,"featured_media":0,"parent":1384,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"hub.php","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"class_list":["post-1387","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Shipping &amp; Handling: All You Need to Know | ShipBob<\/title>\n<meta name=\"description\" content=\"Knowing how much to charge customers for shipping and handling can be challenging. Learn how to calculate these fees and manage operations.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipbob.com\/uk\/ecommerce-shipping\/shipping-handling\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Shipping and Handling\" \/>\n<meta property=\"og:description\" content=\"Knowing how much to charge customers for shipping and handling can be challenging. 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