How Does USPS Calculate Shipping Costs for Packages?

How does USPS calculate shipping cost? The United States Postal Service (USPS) is usually the most affordable option for shipping, especially for regular ground deliveries.

This is because USPS delivers mail and packages to your customers every day as part of their usual routes, so they don’t have to make special trips.

Starting in January 2019, USPS combined their two different pricing models for businesses into one, called “commercial pricing.”

This new pricing offers discounts of up to 15% compared to the regular retail shipping and postage rates.

To get these discounts, you just need to apply for the commercial pricing program through USPS.

As you read on, you will get to know how USPS calculate shipping cost, the variables, and the reasons to calculate shipping cost.

How to Calculate USPS Shipping Cost?

The shipping calculator is a handy computer program that helps you quickly figure out how much it’ll cost to ship your stuff and gives you all the important information in a way that’s easy to understand.

It does all the hard work for you, so you don’t have to do the math, and it makes it simple for customers to ask about prices and services.

Most shipping carriers use a pricing method known as dimensional weight to calculate the rates they offer.

This weight is calculated by multiplying the length, height, and width of the package. A standard divisor is then used for dividing the figure.

In order to Use the USPS Shipping Calculator, you should first;

1. Navigate to the USPS Postage Price Calculator page,

2. Enter the details of your letter or package; select the shipment type.

3. Compare shipping options; add Extra Services.

4. Hit “Continue” for your result; then you can pay for shipping and print postage for your shipment.

What are the Variables to Consider for Shipping?

The cost of shipping depends on a variety of factors and once these variables are calculated, a carrier will put a price on your shipment.

The variables that can affect the cost of shipping are;

1. Package Dimensions

The majority of carriers use a pricing technique called dimensional weight otherwise called DIM weight to calculate shipping rates.

Dimensional weight uses the size of a package to determine the shipping cost.

2. Package Weight

The packaged weight is how heavy the item is, so the heavier and larger the package, the more expensive it will be to ship.

3. Shipping Destination

The shipping destinations are used by carriers to calculate shipping rates. Shipping destination measures the distance between a package’s point of origin and its destination.

Shipping destinations are calculated based on where your package is shipped from.

This means that two different points of origin shipping to the same destination may be shipping to completely different destinations.

4. Value of Contents Shipped

You might want to have your shipments insured if you’re exporting expensive goods.

Senders might receive compensation from shipping insurance if their packages are misplaced or destroyed during transportation.

However, this service can raise the cost of delivery by a large amount. This is typical for both big things like industrial equipment and little things like jewelry, artwork, and medical supplies.

5. Delivery Times

A customer now expects quick shipping everywhere they shop online thanks to Amazon Prime.

Fast, premium delivery becomes more expensive as zones increase, though, if you’re shipping from a single location.

For instance, 2-day ground shipping can be used to deliver a package to a customer in Zone 1, while more costly expedited air shipping is needed for 2-day shipment to Zone 8.

6. Unexpected Problems

No matter how well your shipment plan is, unforeseen problems could occasionally arise. These can include split shipments, lost or damaged goods, and transit delays.

Even though you can never be sure what will happen, make sure your shipping budget has extra, should in case something comes up.

How to Know Shipping Costs for E-Commerce Businesses?

There are a few ways that you can determine shipping costs for your business, which are;

1. Flat Rate Shipping

With flat rate shipping, you can charge a single shipping rate for all orders, regardless of the package’s size, weight, or form.

Because of its ease of use and simplicity, companies who sell comparable items tend to favor it the most.

Depending on the quantity of the products you often sell, the suggested price you should charge for flat rate shipping may change, but it should generally range from $7 to $15.

2. Calculated Shipping

Shipping costs will be computed when customers buy from your store using those measures and their location.

On the other hand, measuring every product in your store to figure out how much to charge for each one could get tiresome if you have a lot of different kinds.

3. Free Shipping

You can offer free shipping in three simple ways:

• Roll the shipping cost into the product price: Basically, you increase the product price a bit to cover the shipping expense, so customers don’t see a separate shipping fee.
• Pay for shipping from your earnings: You cover the full shipping cost from the money you make selling the product. This is nice for customers, but it trims your profit a bit.
• Split the shipping cost: You and the customer both pitch in for the shipping, making it cheaper for the customer and still keeping your profits healthy.

4. Weight-Based Shipping

You simply charge shipping based on the weight of the customer’s orders and will have to know the exact weight of all your products.

5. Price-Based Shipping

The shipping is charged based on the total cost of the orders. For example, for orders between $0-$15, shipping may be $7 while, for orders above $20, shipping might be $17.

What are the Reasons for Using this Calculator?

There are many reasons for choosing to use to USPS Shipping cost calculator, some of them are;

1. Invaluable Asset

It helps you find out how long it takes for your package to arrive, how far it has to travel, how much it costs per mile, and how much stuff a truck can carry for each mile.

Some companies use it to work out how much gas their trucks will use on average and things like that.

2. Calculate the Price based on Size and Region

The shipping calculator gives conversions with limited effort in various areas and without any difficulty. It will give you an accurate price no matter the shape or size.

3. Set Shipping Preferences

The USPS shipping calculator does more than just tell you how much shipping costs. It also lets you choose how you want your package to be handled.

If you want updates on where your package is, you can get those too. Plus, you can save your preferences, which makes sending packages easier and quicker.

4. Flat Rates

USPS provides flat-rate services and free shipping in a variety of sizes. However, standardizing the box sizes and rate calculations is easy since there are few differences.

There are also foreign variations of USPS flat rates and this helps make shipping to international buyers a little less risky in terms of postal prices

5. Pick Up

Pickup is one of the main reasons because your prices may be affected by the sort of pickup you have arranged with your carrier.

You will be required to pay a monthly fee to get a regular pickup in some situations. However, the discounts you get in return can save you cash over what you were paying previously.

To boost your profits, it is advisable to cut down on how much you spend on shipping.

Big companies like Amazon can afford to offer free shipping, but smaller businesses need to find ways to make shipping less expensive so they can make more money.

There are many ways to reduce shipping costs which include:

• Decreasing the shipping distance by distributing inventory near your customers
• Reducing the weight and dimensions of packages
• Finding discounted supplies
• Getting discounted shipping rates

If you want to figure out how much it will cost to send something from one place to another, you should use a shipping calculator.

If a shipping company doesn’t use one, they might charge you too much or too little, which could make you unhappy and they might lose you as a customer.

You and your company require a USPS shipping cost calculator to avoid burdensome responsibilities because shipping work causes me a great deal of anxiety.

So, if you run an online store, using a USPS shipping calculator can help you avoid these problems and keep your customers happy.