E-Commerce Shipping Cost Consideration

This guide covers the important factors in calculating shipping cost

  1. Actual Weight vs. Dimensional Weight

Most carriers calculate their fees based on either the package's actual weight or something called the 'dimensional weight.' The dimensional weight is calculated by multiplying the length, width, and height of the package and dividing the result by a specific dimensional factor:

(Length x Width x Height)cm / Dimensional Factor = Dimensional Weight

Most express shipping carriers (e.g. UPS, Aramex) use a dimensional factor of 5000, whereas standard shipping carriers (e.g. CheckOut Express) use a dimensional factor of 6000.

When you get a quotation from Spaceship Pro, it will calculate the chargeable weight and present you with the freight cost of different carriers.

  1. Consider the Destination Cost

Most express carriers (e.g. UPS, FedEx) impose surcharges on residential and remote deliveries, which can be as high as USD35 and USD6 respectively. These additional surcharges may be billed after delivery as per the courier scan.

Standard shipping solutions (e.g. CheckOut Express) are designed for e-commerce sellers without address-related delivery surcharges.

  1. Dynamic fuel and peak season surcharge

Most carriers have dynamic charges that make up 30-50% of the total cost.

By obtaining a live quotation, you can ensure the cheapest possible shipping option available for both express and standard shipping.


Last Updated:  13 Mar 2023