How to Calculate Shipping Costs For Online Store?
- Protect Your Profit Margins: If you underestimate shipping, you risk losing money on every order. For example, if you charge $5 for shipping but it actually costs $9, that $4 loss cuts straight into your profits.
- Improve Conversion Rates: Conversion Rate is one of the most important ecommerce metrics that reveal your store success. However, nearly half of online shoppers abandon their carts because of unexpected costs like shipping. Showing clear, accurate rates upfront reduces friction and keeps customers from leaving.
- Boost Customer Lifetime Value: Accurate shipping costs also improve customer satisfaction. When buyers know exactly what to expect — no surprise fees or delays — they’re more likely to buy again.
- Package weight and dimensions
- Shipping distance
- Carrier base rate + any surcharges
- Flat rate: You charge one shipping fee for all orders, regardless of size or distance. It’s simple, but risky if actual shipping costs vary widely.
- Real-time rates: Rates are pulled directly from carriers like USPS or FedEx at checkout. These are more accurate and reflect the customer’s location, package size, and current fuel surcharges.
Content Executive at TrueProfit & eCommerce Content Specialist
Leah Tran is a Content Specialist at TrueProfit, where she crafts SEO-driven and data-backed content to help eCommerce merchants understand their true profitability. With a strong background in content writing, research, and editorial content, she focuses on making complex financial and business concepts clear, engaging, and actionable for Shopify merchants.
Leah Tran is a Content Specialist at TrueProfit, where she crafts SEO-driven and data-backed content to help eCommerce merchants understand their true profitability. With a strong background in content writing, research, and editorial content, she focuses on making complex financial and business concepts clear, engaging, and actionable for Shopify merchants.
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