How is Shipping Costs Calculated?

Last Updated:
·
How is Shipping Costs Calculated?
Subscribe & Stay up-to-date!
Subscribe & Stay up-to-date!
Get insights and tips from experts to save up to 80% in shipping.
Learn how shipping costs work in 2026 and how to calculate accurate rates for USPS, FedEx, UPS, and other carriers.

Let's Get Started! Compare shipping rates instantly!

Get a Quote
We make shipping easy, cheap, and fast. Sign up now and join +10,000 shippers that use 60% discounted rates.

Table of Contents

How is Shipping Costs Calculated?

The question many people have is, “How to calculate the cost of shipping?”, since courier prices can be confusing. Shipment rates of the two packages may differ significantly. This is due to the fact that shipping costs are not a matter of guesswork. They rely on distance, package size, weight, and speed of delivery. 

A large but light box can be more expensive than a heavy small one. The good news is, you do not have to work out volumetric weight yourself. Using the Shipixy shipping calculator, all you do is input your package length, width, height, weight, origin, and destination. 

What Information Is Needed to Calculate Shipping Costs?

The cost of shipping is determined by dividing the actual weight of a package by its dimensional (volumetric) weight and adding shipping distance, delivery speed, the value of items in it, and any additional carrier fees. Couriers always charge based on the maximum weight and space to determine the final shipping rate. USPS, UPS, and FedEx have their own shipping calculators through which you can obtain an estimate of their different services.

To get the quickest and most economical options, you need to consider the following factors:

  • Shipping origin (where the package is shipped out)
  • Shipping destination (delivery point of the package)
  • Package weight
  • Dimensions of the package (length, width, height)
  • Declared value of the item
  • Shipping speed or delivery time

Let’s have a look at the details of each factor. It assists companies in offering clear pricing, minimizing cart abandonment, and protecting profit margins. 

Step 1: Measure Package Dimensions

During the transportation of your parcel, couriers determine the space it occupies. The length, width, and height of the package should be measured correctly. Any slight variation in the size of the box can make it more expensive. 

The larger the package is in size, the more it takes up space in trucks and aircraft. Dimensional weight often makes lightweight items appear more expensive because they are packed in large boxes.

Step 2: Weigh the Package

Determine the weight of the package by using a scale. The couriers weigh the actual weight against the dimensional weight and charge the highest. Heavy packages are charged on a weight basis, and those that are light yet bulky are charged on a space basis. Such a comparison guarantees reasonable pricing according to transport capacity.

Step 3: Select Shipping Destination

The costs of shipping are increasing with the distance. Couriers separate areas into shipping zones, and the number of zones a package passes through increases the price. Domestic shipping is generally cheaper when compared to international shipping since they have fewer handling procedures and the routes are shorter.

Step 4: Select Delivery Speed

The speed of delivery affects the cost of shipping directly. The cheapest shipping is standard shipping because express, next-day shipping, and same-day shipping are more expensive because it requires faster processing and transportation. A significant number of customers use slow delivery to save money.

Step 5: Declare Item Value

Declared value impact insurance cover and customs processing. Expensive goods can be more costly to ship due to the need to have extra insurance and further screening, particularly when shipping internationally.

Step 6: Include Additional Fees and Surcharges

Final freight expenses can involve the fuel surcharge, handling fee, insurance fee, and customs charges, as well as taxes. These charges depend on the carrier and destination and are charged on top of the basic shipping cost.

Conclusion

Shipping rates are determined depending on the distance, weight, package size, value, and speed of delivery. Knowledge of these factors will enable you to save unnecessary expenses and select the most suitable courier. 

Ship Discounted Domestic Rates

Our Customers Say Great
4.7  Out Of 5 Based Happy Customers
Benjamin Hayes

Benjamin Hayes is a respected thought leader in the field of logistics, known for his expertise in supply chain management and global transportation. With a career spanning two decades, Benjamin has worked with multinational corporations to develop comprehensive logistics solutions that drive profitability and enhance customer satisfaction. Benjamin writes for Shipixy blog as a freelancer, where he shares his wealth of knowledge, offering practical guidance on optimizing logistics networks, managing inventory, and leveraging technology for competitive advantage.

Recent posts:

Shipixy HomeOur BlogText Link