When do you pay for shipping

Flat-rate shipping is where you charge one price for shipping regardless of shape, weight and size. The only time the price may differ is when shipping to different countries. With this method, customers can buy as much as they like and only pay one fee, which is set by you, the business.

To offer a flat-rate shipping service, you must calculate the average shipping cost for the whole company. Then, as your costs rise, you can increase the shipping fees, as they fall the cost to your customers will fall. Free shipping seems to be offered by the majority of retailers, and for a good reason. Consumers love free shipping, and it can be a great way to increase sales.

For the retailer, though, this can be a different story. To offer free shipping retailers have two options:. It also makes the checkout process less complicated. These might include:. It also heavily relies on the country of export. In some cases, the costs of importing a product lies with the buyer, but sometimes it can be split between buyer and seller. Any agreements like this should be made before sending goods. The four elements required to calculate shipping costs are shipping point and origin, package weight, package dimensions and expected delivery times.

You can calculate the majority of postal shipping rates using these figures. With this information, you can compare shipping rates using a shipping cost calculator.

Most shipping companies let you check shipping costs before sending a parcel. If you send multiple items, you might qualify for bulk shipping rates or business shipping rates. Generally speaking, the further the package is traveling, the higher the shipping cost.

This is especially true for international shipping rates. Shipping the same package to California will cost less than shipping to Europe.

The U. Calculating the shipping cost of a package based on weight is simple. Just weigh the package and use a shipping cost calculator to get a shipping price.

If the parcel is small but heavy, get a shipping cost based on dimensional volume which might be cheaper. Remember that when calculating postage by weight, use the total weight of the package and not the weight of the product itself. Suppose you are using additional packaging for breakable items like cardboard, bubble wrap, and shredded paper. In that case, it could increase the weight of the package.

The extra weight would increase the cost of shipping. Dimensional weight is package length x width x height. Dimensional volume is useful for odd-shaped and bulky items. Couriers often use dimensional weight and product weight together to calculate shipping costs.

The aim is to estimate how much space the package will fill on the delivery truck so their deliveries can be more efficient. Using dimensional shipping weight can work out cheaper for some packages. Buying a range of shipping box sizes will help to reduce overall package volume and reduce shipping costs. Delivery times are usually linked directly to your service offer.

So, if you offer one-day shipping, you need to use an overnight service. Alternatively, you might offer multiple shipping services for the customer to choose from based on how quickly they need the item. The costs of shipping services directly relate to how long it takes for the time to be delivered. Overnight shipping costs more than three-day shipping, for example. Of course, weight and dimensions will also determine the shipping cost. Regular comparisons ensure you are offering your customers the best deal.

To do this, you can use a shipping cost calculator. Most courier websites will have these and allow you to book shipments directly. As you can see, the shipping cost varies hugely between different services and courier companies. You will see these terms as part of the International Chamber of Commerce ICC 's collection of global commerce terms, known as Incoterms.

These terms govern shipping responsibilities for international trade. This standardization allows for easy understanding of responsibility, regardless of the language spoken.

Under a cost and freight CFR agreement, the seller has a weightier responsibility for arranging and paying for transportation the ordered products. For goods shipped CFR, the shipper is responsible for organizing and paying for the shipping of the products by sea to the destination port, as specified by the receiver. Also, under CFR, the seller must provide the buyer with the documents necessary to obtain them from a carrier.

Usually, this includes providing the required customs forms to clear the cargo through the customs inspection process. However, using CFR, the seller doesn't have to buy marine insurance against the risk of loss or damage to the cargo during transit. Responsibility for the goods only transfers to the buyer or receiver when the ship reaches the designated destination port. The buyer is then responsible for unloading costs and any further transportation costs to the final destination.

Free on board refers to a shipping arrangement in which the seller or shipper retains ownership and responsibility for the product only until they are loaded on board a shipping a vessel. Once they are on the ship, or "over-the-rail," the obligation transfers to the buyer. The supplier is only responsible for providing transportation of the goods sold to a designated main shipping origin point.

This point is typically a port, since Incoterms are most commonly used for international trade where goods are transported by sea. Delivery is considered to be accomplished, and responsibility for the goods transferred from the shipper to the buyer or receiver , at the point when goods are loaded aboard the ship at the designated port of origin. The receiver is responsible for arranging and paying for the actual shipping cost from the port of origin to the destination port and for arranging and paying for transportation to any further destination.

The shipper is, thus, free of responsibility once the goods are on board the ship. FOB destination is another form of this contract type. In this case, it indicates the onus for the goods remains with the seller until the product reaches the specified port.

International Trade Administration. Corporate Insurance. Corporate Finance. Business Essentials. International Markets. When you choose FedEx Hold at Location, you can have your package held at thousands of secure retail locations. This reduces the risk of theft and allows you to pick it up when and where it's convenient for you. You can even re-route your package mid-shipment with FedEx Delivery Manager.

Use FedEx Hold at Location to give customers a buy-online-pickup-in-store experience, even if you don't have a brick-and-mortar presence. It's easy to integrate into your shopping cart. We can help, whether you need guidance on packaging materials or you want a pro to pack your shipment for you. Want to pack it yourself? Get complimentary packaging for your FedEx Express shipments or buy supplies like cushioning, tape, and specialty boxes. Ready to ship?

You can choose from retail and contactless FedEx Drop Box options. Your charges could be different from the estimate if any of these factors change. Charges at the time of shipment might be different than those estimated if the package weight, dimensions, origin, destination, currency conversion rate, or other factors change between the time a customer receives an estimate and the time they actually ship the package. Be sure you enter the correct information into the online shipping rates calculator.

You can download a measuring app onto your smartphone if needed. Doing these things should help you enter more accurate information into the calculator for better estimates in the future. Online shipping estimates can be affected by many different factors. And keep in mind, the prices generated by our calculators are just estimates. If any of those factors change between the time you request your estimate and the time you ship your package, the actual price will be different from what was estimated.

Returns are common, especially with customers buying so much online. Return shipment costs vary. If you receive a pre-printed label or code from the shipper, your return shipment may even be free. Find out how to return a package with FedEx. Sign up for a free FedEx account to get discounts when shipping express, ground, or freight. Stay tuned for coupons. Sign up for My FedEx Rewards for exclusive offers. Always compare and choose the right shipping options for your situation.

The size of the box should accommodate your items and enough cushioning or packaging material to protect it. Your shipping price is based on either the dimensional weight dim weight or actual package weight—whichever is greater. Find out more about dim weight or get expert packing tips. You can either request a one-time pickup or, if you ship more regularly, you can schedule recurring pickups.

This is a popular option for high-volume shippers. Get the details on scheduling a pickup. International shipping is more complex than domestic. International fees, duties, and taxes might also cause your shipping costs to be higher. My FedEx Rewards may be modified or terminated at any time without notice. Earnings are available for qualifying purchases and certain exclusions apply. Note: Use of My FedEx Rewards website constitutes your acceptance of our privacy policy and program terms and conditions.

Contact My FedEx Rewards at Home Shipping How to estimate shipping costs with FedEx. How to estimate shipping costs with FedEx. Get a shipping rate Get a shipping rate.