Right now I'm tied in to the UPS API and get live shipping quotes for customers. I'm debating on moving to a more "set" pricing.

Something like:
$0.00-$10.99 == $5.00
$11.00-$19.99 == $8.00
etc etc

That, or just setting up "zones" of shipping so people in each specific zone would pay X amount per pound. Basically wanting to get away from tying in to the UPS API and being dependent on it.

How do you handle shipping costs?

You can find here an info how Amazon handles shipping costs http://www.amazon.com/exec/obidos/tg...f=br_bx_c_1_0/

As we explored they don't use shipping costs based on the price. And they write

"How are shipping costs calculated? We charge a single flat fee for each shipment, plus additional, smaller fees for each item in that shipment. The total shipping charge will be displayed on the last page of the order form, before you submit your order. Here is the equation we use to calculate the total shipping cost:

(Highest Applicable Per-Shipment Cost) + (Number of Items x Per-Item Cost) = Total Shipping Fee
>>>

But most of the shopping carts support the shipping cost structure you plan to use.

You can use a function that is based on the weight of the product * a factor for US shipment.

We mainly use UPS and DHL. We also have fairly standard box and order sizes, but normally we charge a flat rate per item, with a reduced rate for each additional item. For some items, the shipping ends up being a little high but normally it is very close to what we are being charged. We looked at using an API, but this way we can give a shipping quote very early on in the shopping process, and it makes everything easier for us as far as knowing exactly how much shipping is going to cost without ever having to calculate it. That part is important when we take an order over the phone.

I think a lot of it depends on how standard your package weight and sizes are. If we routinely had a diverse package sizes and weights we would probably have to change the method we use.

Hi,

My client uses the UPS XML real time shipping prices. I think is a great solution because you don't have to worry about people ordering from somewhere far and loosing money in shipping.

I'm thinking maybe you're asking this because you're loosing a little bit of money or what to make a few more dollars profit? If so you may want to charge extra by add a handling fee to the shipping cost or even bump up your retail prices a few bucks.

Good luck,

Grim

I think a flat fee for shipping is absolutely the best method.

Then it is easy for you not that confusing for the customer either.

//Andreas

I did a fair amount of research on this in the past and discovered what many have already said - flat rate + handling or table rate based on weight. The online (live) calculations work Ok for some, but when you get into a situation where there are multiple boxes, large items that don't weigh much your actual shipping costs can can vary greatly from the calculated cost. All of my ecommerce clients are now using some type of table or flat rate method and reviewing the actual/calculated each month or quarter to make sure they are breaking even.

I use actual rates based upon weight from the shipping vendors rate tables. I do this simply because I don't want to rely on the connectivity to a third party to complete the checkout process.

Weight is the most accurate way to go.

I prefer "live" shipping or rather shipping that is based on published rates using weight and dimension plus an extra handling and packaging fee. Flat shipping tends to under/over charge customers and while it often equals out for the merchant in the end, that is not always the case. Things become even more problematic when rates go up (i.e. FedEx gas addon fees), which is yet another reason to have a data table.

Ultimately with calculated rates, customers pay something more accurate and therefore more fair. These can still be discounted or turned into promotions for specials (i.e. expedited shipping for $4.99) but since you know the cost of the actual transit, you can figure out the impact on your margins and thus your bottom line.