eCommerce shipping costs in India are controlled by several eCommerce giants like Blue Dart, FedEx, UPS, etc., and solely depend on the kind of shipping services they offer. On average, they charge Rs 30-90 per 500g and provide services like labeling, manifestations, packaging, express courier delivery, and shipping. The shipping costs also include the profit margin of the eCommerce company.
How to Calculate Shipping Rates?
An eCommerce business must calculate shipping costs before settling for Courier Aggregator or eCommerce logistics company/software. Instant shipping rate calculators are easily available on the web and the websites of eCommerce courier companies. You must be ready with the following information before you use the shipping rate calculator:
For domestic shipping:
- Delivery area PIN code
- Pick-up area PIN code
- Package weight
For international shipping
- Destination country
- Zip code of the pick-up area
- Delivery area zip code
- Package weight
- Dimensions of the package like its width, length, and height
Different Ways to Calculate Shipping Costs
1. Calculated Shipping Costs
Calculated shipping costs are the easiest way to determine shipping costs as it is based on the dimensions and weight of the delivered order. Under this method, each item is weighed individually to calculate shipping costs. The customer also gets the benefit of paying only for the actual transportation of the goods. The courier charges calculator will help you in calculating your shipping related all charges and allowances.
2. Uniform Shipping Charges
Flat shipping charges do not consider product size, weight, dimensions, etc. This is a viable way to calculate shipping costs for new eCommerce businesses in India.
3. Commission or Handling Fees
The shipping details are fairly extensive. From packaging to label printing, cargo loading and unloading, and security measures all fall under the handling fee section. The total costs may look like having hidden fees, but they include the transfer of the actual order from one place to another. Therefore, it makes sense to include handling fees in shipping for eCommerce shipping in India.
4. Free Shipping
Customers love free shipping. But this means eCommerce companies may have to raise the price of the item they are selling by adding shipping to the item price itself. Or they end up paying their shipping costs and lowering their profit margins.
5. Dimensions and Volume Weight
Shipping costs for Indian eCommerce can be based on measurement or dimensions weight that depends on the length, width, and height of the order against the actual weight of the product.
6. E-commerce Courier and Delivery Company
Transportation costs in India and other regions are also affected by the number of personnel from carriers, account managers, drivers, warehouse managers, and ground forces required for actual transportation.
7. Delivery Zone
The delivery zone is the area where the Courier Aggregator deliver the order. The delivery zone is defined by the place of origin of the order.
8. Some Important Shipping Related Charges:
In some cases, there will be additional costs associated with shipping logistics. Couriers may incur additional charges due to various variables such as delivery location, type of goods shipped, and delivery time. Here are some common shipping-related charges to understand:
- Shipping insurance – If you are shipping expensive items, you can purchase transportation insurance to protect them from lost, stolen, or damaged items in transit
- Pick-up location – These charges are also called “remote area surcharges” or “extended area surcharges.” These will be added if the eCommerce couriers deliver or pick up a package from a not regularly serviced location. There can also be a home collection fee.
- Fuel surcharge – These vary from country to country and are constantly changing.
- Error Fees – As humans, you may incur some expenses in error which come under “address correction fees,” “delivery attempt fees,” and even “return shipping charges.”
- Package fee – Additional charges may apply depending on the contents, package, weight, and dimensions of the package.
9. Customs Duties and Taxes
Customs duties and taxes may apply depending on what you are shipping and its value. These are complex and vary from country to country. There are two types of obligations:
- Shipping of DDU (Delivery Duty Unpaid): When clearing customs, the recipient is responsible for paying to clear the package from customs clearance. However, if the recipient refuses to pay these taxes or refuses the package, you are still responsible for the payment as the sender. Therefore, as a retailer, we recommend that you keep international shipping costs as transparent as possible. It saves you money.
- Shipping DDP (Delivery Duty Paid): This obligation allows the sender to pay the fee, but the calculation is more complicated. The courier will charge a “DDP fee” to pay taxes and duties on your behalf when the package arrives in your destination country. The “withdrawal fee” is calculated as a percentage of taxes and duties. Yes, it takes time, but this method at least tells you that the package will not be returned because the recipient will not pay or reject the package.
How do Ecommerce Courier Companies offer Cheaper Shipping Rates?
E-commerce logistics companies have access to large warehouse spaces that can hold hundreds of orders and special delivery vehicles that can move large volumes of cargo from one location to another.
Therefore, the courier company’s shipping costs are much lower, as multiple items can be stored and shipped in one van. Couriers and logistics software can automate many of the main processes of eCommerce companies thanks to high-end technical support. This reduces shipping costs across India and speeds up the delivery process.
However, the shipping costs can rise if:
- E-commerce companies manage their own transportation needs and hire additional staff to handle logistics leading the brands to run out of profit margin.
- Additionally, online retailers do not specialize in logistics, which increases the likelihood of inaccuracies and errors.
Conclusion
When it comes to shipping, eCommerce businesses feel more comfortable handing over their brand to third-party logistics to carry out the function. Shipping is an important part of the business, using which the customers will ultimately experience your product first hand.
Depending on your transportation strategy, this can be a significant cost to your business. Therefore, it is very important to map the defined transportation strategy. The e-commerce shipping calculation in India will help you calculate the shipping costs for your business and reduce shipping costs.
