How Are Courier Prices Determined?

22 Sep 2016 in Business

Shipping items domestically and internationally can be somewhat expensive. If you are a private individual who is looking to ship something, you don’t have to worry too much about the price. A one-time cost that is higher than you’d like to pay isn’t going to break your bank; however, if you are running a business, shipping costs are incredibly important. That’s especially true for a small business operator. If you have a small business, your profit margins are likely very slim. A very slim profit margin can be greatly affected by something as small as the shipping costs. The math is pretty simple. You need to calculate how much you are paying to ship each item and then multiply that by the number of items you ship each week. You should then look at some other shipping options. If they are even as little as a dollar cheaper per item, you could save hundreds of dollars every day. Here is how those prices are determined.

Item Weight

The weight of your shipment is calculated in two different ways: it is calculated by its gross weight and its cubic weight. The actual weight is simply how much your shipment weighs. The item cost is also calculated by its cubic weight. The cubic weight is the volume of your shipment. You calculate this by multiplying the length, width, and height. If you are trying to calculate how much your shipping might cost, you should focus on the cubic weight of your item. Also, you should operate under the assumption that your shipment will be measured as a cube. That means if you are sending something that is irregularly shaped, you should use the maximum measurements of the length, width, and height necessary to make a cube shape. International shipping also has a few considerations that domestic shipping might not. Parcel 2 Courier can help you compare the costs for couriers international and domestic.

International Costs

International costs tend to be higher than domestic costs for a few reasons. For one, domestic shipping is often done by transporting the items on a big truck. Traveling over land is one of the least expensive and most efficient ways to move items. Air shipping is faster but it is more expensive; sea travel is cheaper but it is slower. Driving is efficient and keeps the cost of domestic shipping low. International shipping from Australia demands that your shipment cross an ocean. That means you’ll have to pay air freight or sea freight prices. Air freight is more expensive than sea freight, but it is much faster. Since much more energy is needed to keep a heavy airplane in the air, the price per kilogram is much higher. Sea freight costs are much lower. Parcel 2 Courier can help you determine the cost of your international shipment based on several different factors.

You can look at many different services and determine which one offers your business the best chance of making good profits and keeping your customers happy. Every little bit helps, and shipping is a great place to save some money.