Are You Charging Too Much to Ship Goods to Your Customers?

Should you charge more or less for fast shipping in the GTA?

Do you use fast shipping to send your goods across the GTA, Milton, Oakville or Burlington? If you’re constantly shipping packages to your customers, you may be wondering if you’re charging too much, or not enough to cover your own shipping costs.

There are two basic models to charge for shipping, as described by David K. Williams of Forbes.com.

Calculated Shipping

“It goes without saying, but to figure out your shipping costs you need to actually calculate them. Before you start selling products, measure their weight, dimensions, and other factors that affect how much it costs to ship them. Round these numbers up to the nearest whole number.”

Flat-rate Shipping

“Flat-rate shipping involves averaging out all of the costs of a company’s shipments. You’ll lose money on half of your shipments and make many on the other half, so it all evens out. You need to pay close attention to the average, as it changes over time… It works best for products that are fairly small and not too heavy.”

An argument can certainly be made for both. Take a close a look at your typical shipping schedule and the size of your average order to see if moving from one model to another makes sense.

If you’re still not sure, please feel free to contact us to discuss options for fast shipping across the GTA, Milton, Oakville or Burlington.