How to do shipping calculation in ecommerce and reduce delivery costs

Doing the right shipping calculation in ecommerce is crucial to providing a satisfying shopping experience, maintaining transparency with customers, making appropriate pricing decisions, and controlling shipping costs. 

Providing a quick delivery quote at checkout is an essential part of the online selling process and helps ensure the success of your business.

How to do shipping calculation in online business?

The shipping calculation may vary depending on the country, e-commerce platform used and the agreements established with the delivery services. 

However, in general, the following factors are considered when calculating freight:

• Product Information: The first step is to have relevant information about the product to be shipped, such as weight, packaging dimensions and number of items. 
• Origin and Destination: The calculation system needs to know the location from where the product will be sent (origin) and the final delivery destination. This can be obtained using the customer’s zip code or address.
• Chosen delivery method: express, economic, etc.

Based on this information, the system uses the parameters provided by the carriers and/or courier to calculate the freight. 

As online stores generally have integration with these delivery services, which allows the system used to make the quote to access the price tables and information of the companies in question.

After shipping calculation, the cost is displayed to the customer, who can compare the different delivery options available and select the desired one.

It is important to note that there may be variations in the details and stages of freight calculation, depending on the system and transport companies involved. 

Therefore, it is recommended to consult the specific documentation of the ecommerce platform and the delivery services used to obtain more detailed information about how quote is carried out.

How can my online store reduce shipping costs?

There are several strategies that a store can adopt to try to reduce shipping costs and make it more attractive to customers. Here are some suggestions:

Negotiate with Transport Companies

Contact the carriers you work with and try to negotiate better rates or shipping conditions. 

Depending on the shipment volume you carry out, you may obtain discounts or special benefits.

Partnerships with Logistics Companies

Consider partnering with logistics companies (3PL) or local delivery services.

These partnerships can result in reduced rates or exclusive benefits for your store, such as express delivery and even same day delivery.

Subsidize a Part of the Freight

You can choose to subsidize part of the shipping cost, absorbing part of the value as a strategy to make delivery more affordable for customers. 

This can be done by including a percentage of value in product costs or as a special promotion.

Offer Free Shipping

A popular strategy is to offer free shipping for orders above a certain value. 

This encourages customers to purchase more items to reach the minimum value and take advantage of free shipping.

Optimize Packaging

Analyze your packaging to ensure they are not excessively large or heavy in relation to the product shipped. 

Remembering that one of the factors considered when doing shipping calculation is the package size and total package weight. Smaller, lighter packaging helps reduce shipping costs.

Offer Alternative Delivery Options

Consider offering alternative delivery options, such as in-store pickup and collection points, in addition to traditional delivery.

This can be a convenient solution for local customers or those living in hard-to-reach areas, speeding up delivery and reducing shipping costs.

Evaluate Freight Agreements with Suppliers

If you work with suppliers who ship products directly to customers, negotiate favorable shipping deals with them. 

They may have transportation options more economical or even offer free shipping in certain circumstances.

It is important to analyze the viability of each strategy and evaluate how it fits into your operations and business model. 

Not all strategies may be viable for all stores, but it is possible to find solutions that suit your needs and clients expectations.

How do I find delivery people for my business?

Finding delivery drivers for your e-commerce can be done in several ways, depending on the business model, the volume of deliveries and the region where you operate. Here are some options and strategies:

1. Delivery and Logistics Platforms

• Logistics Partners: Companies such as UPS, DHL and FedEx offer delivery services. Evaluate costs, deadlines and coverage to choose the best one.
• Delivery Apps: Use platforms like Delivery 365 that connect companies to delivery drivers.

2. Direct Hiring of Delivery Drivers

• Freelancers or Self-Employed: You can hire independent couriers directly.
• Creating an Internal Team: If the volume of deliveries justifies it, hiring your own couriers can offer greater control over the operation.

3. Invest in Technology

• Developing your own logistics system or using delivery management software can help attract and organize couriers.

Before making a decision, pay attention to the following tips:

• Trade Well: If you are hiring your own team, offer benefits such as flexible working hours, fair remuneration and adequate working conditions to attract good delivery people.
• Region and Volume: Consider geographic reach and average delivery volume when deciding whether to outsource or create your own team.
• Technology: Use tools to do shipping calculation for each order and monitor performance and customer feedback on delivery, ensuring quality service.

Before choosing a solution, it is essential to research, compare the available options, and evaluate the advantages and disadvantages of each one. 

Applications like Delivery 365 offer numerous advantages for companies that work with delivery, especially in the context of convenience and practicality. 

One of the main advantages is access to a wide base of already registered delivery drivers, avoiding you having to go through all the work of finding good professionals. 

Another significant benefit is the integration of technological solutions that simplify the sales and delivery process. 

The Delivery 365 app provides tools to manage orders, calculate shipping, monitor deliveries in real time and even dynamically adjust menus and prices. 

This reduces operational errors and improves customer experience. For smaller companies, logistical support that includes a network of delivery people eliminates the need to create and manage your own fleet, reducing costs and complexity.

Just register your business on our app to have your own online store and, best of all, connected to couriers ready to deliver your products.

To learn more, visit our website, learn about our services and guarantee the best shipping service to your customer.