You have likely heard the term shipping and handling while purchasing products online or shipping items across boundaries. While these terms are often used in businesses, they sometimes leave customers confused about what they actually mean and how they impact the total cost of a product. In this blog, you’ll get to learn about the same with its importance and how these costs are calculated in eCommerce and logistics businesses.
What is Shipping and Handling?
Shipping & handling are the core components for both consumers and businesses. The handling element includes everything that takes place prior to the item being delivered, including processing and packaging, whereas the shipping section refers to the actual delivery of the items.
- Shipping: Shipping refers to the actual act of moving products from one place to another. This can entail a number of techniques, such as air, sea, or ground transportation. The weight of the goods, the delivery distance, the shipping method, and the delivery speed (standard, expedited, or express) are some of the variables that affect the shipping cost.
- Handling: Handling on the other hand includes expenses, the work, and overhead required to get an item ready for shipping. This covers any extra precautions that must be taken to guarantee the item reaches its destination securely, as well as packaging, labeling, and documentation (such as customs forms for foreign delivery). The expenses of keeping inventory and overseeing logistics at the warehouse are also covered by handling fees.
How To Calculate Shipping & Handling Costs
Shipping & handling fees may vary greatly depending on a range of factors. Understanding how these costs are calculated can help your business make more informed decisions when purchasing or shipping items. Some of the key factors that affect the cost of shipping and handling are as follows:
- Size and Weight of the Package: Larger and heavier items cost more to ship. This is because they take up more space in the transport vehicle and require more labor to handle. Shipping carriers typically charge based on the weight of the package and its size.
- Distance: The farther the package has to travel, the higher the shipping cost. Domestic shipping is generally more affordable than international shipping, which also involves additional customs handling and import taxes.
- Shipping Method: Shipping fees will vary depending on how quickly you want the item to reach its destination. Standard shipping is the cheapest option, while expedited or express door to door services is more expensive.
- Packaging: The type of packaging used can influence handling costs. Fragile or irregularly shaped items may require custom packaging, which increases handling time and materials. Additionally, items that need special care, such as temperature-sensitive products, may require extra handling services.
- Insurance: If you choose to insure your items for their journey, this will add an additional cost. Insurance covers the value of your goods in case of damage or loss during transit.
- Destination: International shipments often come with extra costs, such as customs service, import duties, and taxes. Domestic shipments can have regional variations, too, depending on the logistics network in the area.
Factors That Affect Shipping and Handling Costs
There are various factors that affect the cost of shipping and handling including size and weight of products, shipping distance, delivery time, and other charges. Also, there are various effective practices for handling returns with dropshipping business. Some of the most important ones are mentioned below:
- Try to write a clear return policy
- Accept return orders to a PO box
- Customize your policies and keep your customers satisfied
- Carefully handling returned products from customers
- Incentivize exchanges
- Implement an efficient return process
From today onwards, you don’t have to worry about shipping and handling methods as Travelite knows how to ship large & heavy products and provides optimal solutions to ensure the delivery of your goods timely and safely. Whether you’re shipping domestically or internationally, our experts ensure that your every product is handled properly and with care. Stay connected with us today to learn more about our secure & reliable shipping processes.
