If your orders contain different combinations of products, consider different sized poly mailers. Hybrid shipping services like UPS SurePost and FedEx SmartPost pick up your orders and then work with other carriers like USPS to transport your packages to a sorting facility or post office location, where it is then shipped to a residential area for last-mile delivery.

However, the tradeoff is often a slower delivery. Every year, the major shipping carriers increase their shipping rates as part of the annual general rate increase GRI.

Additionally, carriers may implement surcharges at various peak times such as the holidays and Q4 or what we saw happen during the early days of the COVID pandemic , when there is a surge in packages being shipped.

They also implement other surcharges annually, ranging from large package surcharges to signature required surcharges. During peak season or any high volume events or periods for your ecommerce business e. The carriers have their own set of cutoffs for each service during the holidays to help prevent gifts from arriving late.

For customers who want to reduce shipping costs, this will involve placing orders at the earliest cutoffs to avoid paying more for expedited shipping. On top of running out of time as dates approach, there may be additional considerations that impact cutoffs, such as labor shortages, weather events that prevent carriers from shipping, shutdowns from COVID outbreaks, federal holidays that close down operations, and other factors.

If you work with a 3PL, be sure to pay attention to not only their specific carrier cutoffs, but their inventory receiving cutoffs, holiday turnaround times, any SLA extensions, and general holiday schedule. Any logistics company needs to make many strides over the months leading up to the holidays to prepare for peak season, and any brand needs to pay close attention to relay this information to their customers.

Not all of the tips above are going to be applicable to your business or improve your bottom line. Thinking about your current ecommerce shipping process, answer the following questions to get an even better sense of what you can do to cut or recover shipping costs.

The psychology of online shopping and consumer preferences is fascinating. You can present shoppers with two scenarios where they would pay the same total price, yet they would abandon their cart for the one that has a higher shipping cost.

Consider the following ideas to implement to make up your shipping costs:. Use the following sites to dig deeper into your specific shipping costs:. Many small businesses make common packing mistakes that increase their costs, like using too big package dimensions or extra package weight.

Others use boxes when they could use a poly mailer or padded envelope to decrease the weight and dimensions. If you use custom branded boxes, inserts, and other fancy packing supplies like shredded paper filler or custom tissue paper, and you are struggling to keep shipping costs down, you could probably save money by ditching those.

Understanding patterns in shipping destinations can help to identify where you should be shipping from. Working with a third-party logistics 3PL company, you can utilize their ecommerce warehouses to store your inventory and ship from locations that are closer to your customers.

This can significantly reduce your average shipping cost when you multiply out those cost savings across all orders. Now, we can comfortably assign a shipping cost to each order by pinpointing the product weight and destination zip code.

In comparison to shipping products to the US from Canada, which can be extremely variable in cost, fulfillment by ShipBob is much easier to estimate. Companies like ShipStation and Stamps. com have free trials for small businesses managing shipping themselves. Another big money and time-saver is outsourcing order fulfillment to a 3PL company that stores inventory, packs orders, and ships packages for you.

Courtney Lee, founder of Prymal. In addition to obvious direct costs like postage , outsourcing shipping and fulfillment means you have new time to focus on areas of your business that drive sales, unlike packing boxes and running to the post office as orders come in everyday.

Sometimes, the best way to reduce shipping costs and scale is to partner with a professional fulfillment company. ShipBob provides inventory management , warehousing , and other ecommerce fulfillment services, and also helps brands compete with big retailers.

With thousands of customers, ShipBob is able to negotiate bulk discounts from shipping companies such as UPS, USPS, FedEx, and DHL to provide better rates to customers for expedited shipping , 2-day shipping , international shipping , and other speeds and services.

ShipBob helps ecommerce sellers choose the best location in the US to store their inventory closest to the most customers using shipping destinations from their sales history. By cutting down the distance an order has to travel, it can be delivered quicker and at less cost.

With ShipBob, there are no separate line items for picking, packing, or packaging supplies. We use plain brown boxes and packing materials to not overwhelm your customers with our brand, but let them focus on unboxing your product. Merchants can also send custom branded boxes, poly mailers, and inserts to use for their orders.

By outsourcing retail fulfillment , you can also get time back to focus on other tasks that drive new customers to your website. Now, I have very transparent pricing, and I can easily run and plan my business.

My old carrier billed monthly, which would drain a huge sum of Euros from my account at once. My cash flow has improved.

Shipping and handling are unavoidable logistics costs when running an ecommerce business. Unfortunately, shipping is also one of the most costly expenses you'll need to take on. Shipping costs will vary based on the following:. But, did you know you may be able to reduce your shipping costs with little effort?

Here are some of the ways to save big on small business shipping! When you do this, be sure you or your shipping manager know your numbers: shipping needs, volume, and projections.

That will get UPS, FedEx and other carriers to pay attention. Also, be sure to negotiate with multiple carriers to get the best deal.

If one carrier knows you're considering switching, they may be willing to play ball to reduce shipping costs and keep your business. The catch, of course, is that they make you initiate the refund process and many companies don't bother or don't know about it. Yes, monitoring your account can be very time-consuming, however, if you're doing a lot of shipping, requesting credits for service failures, overcharges, weight discrepancies, and more can really add up and significantly reduce your shipping costs.

It's also important to note that you have a window of 15 days from the date of invoice to claim those refunds, so you don't have to be on top of it daily. Look for a carrier that will make pick-ups and deliveries at no cost to save you time and money.

You may know that shipping labels can be printed at home, but did you know you can also print postage at home? Of course, different carriers have different rules about printing postage for packages.

However, once you understand them, you can save money by printing them right from your computer. Some carriers also offer special software that integrates with your own to make the process even easier. Instead, purchase plain, traditional packing materials such as boxes, bubble wrap, air pillows, and more in bulk to cut your shipping costs.

One way UPS, FedEx, and other carriers make their money is by overcharging customers for insurance costs. That can save you almost half! Applying dimensional weight to shipments is fairly new for carriers, and many small businesses don't know what it's all about.

Here's how it began. About five years ago, carriers noticed they were losing money on large — yet light — items. These large items took up a lot of space on their trucks, but netted them little money.

Carriers have more than 75 special charges, such as fuel surcharges, signature fees, and weekend delivery fees. Are you offering free shipping and finding it to be too expensive? Up the price of your product and continue to offer free shipping! This may seem counterproductive, but remember customers like the simple pricing structure of a free shipping model.

They may not notice that the product costs more. Again, it comes to simplicity and not having to do any calculations. Often, busy shippers will simply choose a single carrier strategy and negotiate a reasonable rate.

While a single carrier strategy is a time-saver, using multiple shipping carriers offers a number of benefits of its own. Shipping zones are the geographical areas that various carriers ship to.

Prepay shipping to save money on shipping labels Factor in all fees Work with providers

Reduced shipping fees - Use the “right” packaging Prepay shipping to save money on shipping labels Factor in all fees Work with providers

Customers are more likely to buy additional books to enjoy the free shipping benefit. Regularly analyze your shipping data, carrier relationships, and customer feedback to ensure your strategies remain effective in reducing shipping costs while maintaining customer satisfaction.

Effective logistics optimization involves making strategic decisions about carrier selection, fulfillment services, and ongoing improvements. This approach ensures efficient shipping processes that help reduce your shipping costs.

Choosing the right shipping carrier for your shipping needs is crucial. Research and compare carriers based on factors such as shipping rates, delivery times, and reliability. Negotiate with carriers to secure better rates based on your shipping volume and commitment.

For instance, an online boutique specializing in handmade jewelry can negotiate with carriers to receive discounted rates for their delicate and lightweight items. Thoroughly compare shipping options to find the most cost-effective and suitable methods for different types of shipments.

Consider factors like delivery speed, tracking capabilities, and shipping fees. Online shipping calculators can help you compare costs across carriers. Imagine an online toy store retailer offering both regular and expedited shipping options.

By comparing carriers, they might find that one carrier offers competitive rates for regular shipments while another is better for expedited orders.

Third-party fulfillment involves outsourcing your order processing, warehousing, and shipping to a specialized provider. The fulfillment partner often has established relationships with carriers, allowing you to access better shipping rates.

For example, a subscription-based beauty box company might partner with a third-party logistics fulfillment center. This not only streamlines their operations but also provides access to negotiated shipping rates, reducing overall shipping charges.

A culture of continuous improvement is the cornerstone of every successful business. It involves regularly assessing and fine-tuning your shipping processes. Monitor carrier performance, gather customer feedback, and identify areas for optimization.

For instance, an online furniture retailer might notice that customers in certain regions consistently experience shipping delays. By addressing these issues, they can improve customer satisfaction and potentially negotiate better terms with carriers for more reliable shipping.

Remember that logistics optimization is an ongoing effort that requires adaptability and a willingness to evolve based on changing market dynamics and customer expectations.

Efficiency enhancements are key to streamlining your shipping processes. They help reduce shipping costs and provide a better customer experience.

Efficient packaging can significantly impact shipping costs. Avoid oversized boxes and excessive padding that lead to dimensional weight charges. Instead, use packaging tailored to your product dimensions. A real-world example is a company that sells shoes.

By using compact, custom shoe boxes that fit the product snugly, they minimize unused space and avoid paying extra for dimensional weight. Shipping software and automation tools are game-changers in reducing shipping costs. If you have an in-house shipping fleet, you can take advantage of route planning and optimization software like Upper.

Upper can help you plan and optimize your land shipping routes to give you the most efficient routes so that your drivers spend less time on the road and ship faster.

Choose between the fastest and shortest route based on your preference. It uses advanced algorithms to study different factors like traffic conditions, road closures, weather, and other shipping preferences to give you an optimized shipping path for carriers.

Additionally, if you rely on external shipping partners, you should implement third-party platforms or software to help you find the most cost-effective shipping options, automate label generation, and streamline order processing.

For instance, Yourlibaas. com , a Pakistani ethnic clothing brand, uses PHP scripts that automatically send quotes and select the best carrier and shipping service based on package weight, destination, and shipping fees.

It has helped them to optimize shipping operations and reduce shipping costs. Providing customers with accurate tracking information enhances their experience and reduces customer inquiries. Resort to carrier-provided tracking systems or third-party solutions.

Consider an outdoor equipment retailer; by integrating real-time tracking on their website, customers can monitor the progress of their camping gear delivery, reducing uncertainty and improving satisfaction.

Efficient return management helps to reduce shipping costs and enhances customer satisfaction for return orders. Offer clear return policies and provide prepaid return labels for customers. Imagine a clothing retailer implementing a hassle-free return process.

By providing customers with a prepaid return label and detailed instructions, they not only reduce the return shipping cost but also make the return experience convenient for shoppers. Regularly auditing your shipping invoices is one of the best ways to reduce shipping costs due to billing errors.

Shipping invoices can sometimes contain errors or discrepancies that result in overpayment. Regular audits help in identifying such errors and rectifying them promptly. A real-life example is an online gourmet food store. By routinely reviewing their shipping invoices, they discovered a billing error that had been consistently charging them extra for certain shipments, leading to substantial cost savings after correction.

By focusing on these efficiency enhancement methods, you can not only reduce shipping costs but also create a smoother, more transparent shipping experience for your customers. Having well-defined shipping policies and terms can not only save money but also enhance customer satisfaction.

Clear shipping terms and policies communicate expectations to customers and reduce bitter surprises that may lead to an increased average shipping cost.

Consider offering a range of shipping options such as standard, expedited, and overnight. An example is an online electronics retailer that offers customers the choice between standard shipping with an affordable shipping fee or faster-expedited shipping with expensive pricing.

By providing options, customers can align their preferences with their budget and urgency. Additionally, communicate any restrictions or fees associated with certain shipping zones.

For instance, a seller of delicate glassware may have specific shipping policies for international orders to ensure safe delivery, which could include additional handling fees.

By transparently detailing your shipping terms and policies, you can reduce international shipping costs, manage customer expectations, prevent misunderstandings, and avoid unnecessary costs that might arise from rushed deliveries or unexpected fees.

Sourcing shipping materials efficiently can help you lower shipping costs. Purchase packaging materials in bulk to take advantage of shipping discounts. You can also Invest in a postage scale to measure the weights of the shipping packages for accuracy.

Consider eco-friendly and lightweight packing material. Sourcing biodegradable packaging materials not only helps in reducing shipping weight but also can save on shipping costs and build a positive brand image. Furthermore, you can partner with packaging suppliers to negotiate better rates.

Some suppliers offer customizable packaging solutions that optimize size and durability, which can help you reduce shipping costs due to reduced packaging costs. By carefully sourcing shipping materials and being transparent about your policies, you demonstrate professionalism and commitment to customer satisfaction.

In turn, it can result in packaging costs and improved customer loyalty. Shipping costs can be influenced by numerous factors like increased customer demand, shipping distance from origin, weight of package, delivery speed, fuel surcharges, and carrier shortage. The cheapest shipping method for small businesses is using standard ground shipping from large carriers like USPS First Class Mail.

For small packages, flat-rate shipping boxes offered by USPS can be the best choice. These boxes allow you to ship items at a fixed rate, regardless of weight, as long as they fit within the designated box size. Shipping large packages can often be more affordable through USPS Priority Mail freight services, which handle heavier and bulkier items.

Freight shipping providers offer competitive rates for larger shipments by utilizing different pricing models than traditional small package carriers. Offering free packaging and shipping has become common nowadays. To counter this, you can offer free shipping for threshold orders or incorporate the shipping cost into product prices.

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From negotiating with carriers to liaising with suppliers, here are 12 tips to effectively reduce & manage your shipping costs Missing Five Ways to Reduce Shipping Costs While Maintaining Shipping Speed · Scale back the size of your shipments · Pay attention to your packing: Reduced shipping fees

Shipping zones Reeuced the geographical areas that carriers ship Free Sample Campaigns, spanning from Shupping 1 to Zone 8 for domestic shipments in Reduced shipping fees United States. Larger shiipping can lead to larger Reduced shipping fees weightwhich feez turn will lead to more expensive shipping costs. Without an exclusive carrier, business owners are more likely to keep up with the services and prices others offer. They also implement other surcharges annually, ranging from large package surcharges to signature required surcharges. Learn more about Shipping. Lower shipping costs are the foundation for optimized order fulfillment and increased cash flow for your ecommerce business. Review Automation Send automated review requests or customize your own message.	You May Also Like These Stories on Business. FeedbackFive RestockPro SellerPulse. No Commitments. It lets them select a day of the week to receive all their orders. The dimensions are smaller, taking up less room on a delivery truck, and using them also requires less packing supplies like tape and bubble wrap to save even more money.	Prepay shipping to save money on shipping labels Factor in all fees Work with providers	Pirate Ship offers instant access to pre-negotiated UPS and USPS discounts with no monthly fees, hidden costs, minimum volumes or commitments of any kind 10 Ways to Reduce Shipping Costs · 1. Negotiate with Several Carriers · 2. Weigh Packages and Shave Dimensions · 3. Use Packages Given by Your Sourcing shipping materials efficiently can help you lower shipping costs. Purchase packaging materials in bulk to take advantage of shipping	Get discounted shipping rates Leverage discounted supplies Use the “right” packaging
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Shkpping How It Works Watch a short recording to Reduced shipping fees more. Seller Tutorials. This Festive food discounts is often used by subscription Reduced shipping fees Rduced. For cees who want to reduce shipping costs, this will involve placing orders at the earliest cutoffs to avoid paying more for expedited shipping. Cause once your supplier knows that they have and will continue to have a stable business for a while, they will offer you more favorable terms from time to time.	fuel surcharges. It will likely save you time and effort that you can put into other aspects of your business, like marketing, fundraising, or innovation. Alternatively, you can use flat rate boxes provided by your shipping carriers to mail your packages. Additionally, the carriers will provide packaging material for flat-rate services. They have not only set the benchmark for expedited and cost-free shipping but have reshaped consumer expectations in the process.	Prepay shipping to save money on shipping labels Factor in all fees Work with providers	Cutting shipping costs is a top concern for any online store. Read this guide for some cost-saving ideas and questions to ask about your current process Work with providers Reduce weight of packages; Choose the right-sized packaging; Use flat-rate shipping when possible; Use Shopify Shipping to cut carrier costs	Cutting shipping costs is a top concern for any online store. Read this guide for some cost-saving ideas and questions to ask about your current process 10 Ways to Reduce Shipping Costs · 1. Negotiate with Several Carriers · 2. Weigh Packages and Shave Dimensions · 3. Use Packages Given by Your Reduce weight of packages; Choose the right-sized packaging; Use flat-rate shipping when possible; Use Shopify Shipping to cut carrier costs

From selling online via platforms or your own e-commerce site, there is always online shipping fees involved and a need to reduce online shipping costs so Shipping costs vary on destination, size, weight, and service selected. This guide offers ways to reduce shipping costs with FedEx and UPS Another option is working with a 3PL. An experienced third-party logistics provider will leverage the size and volume of their shipping, and be: Reduced shipping fees

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Sshipping click driver dispatch. Buy Low-cost party table covers Status Find out when you win or Reduced shipping fees the Buy Box, Recuced when it's suppressed. Reduced shipping fees are used ffes permission. Additionally, carriers may implement surcharges at various peak times such as the holidays and Q4 or what we saw happen during the early days of the COVID pandemicwhen there is a surge in packages being shipped. Komal Puri is a seasoned professional in the logistics and supply chain industry.	Plus, Amazon offers free 2-day shipping, enabling shippers to delight their customers with fast delivery times. Amazon has hundreds of warehouses globally that quickly deliver a high volume of orders. Those other terms can confuse customers and set expectations of immediate delivery, which is generally not feasible — or necessary — for nearly all eCommerce businesses. However, you can get your orders out faster. Buy your supplies in bulk.	Prepay shipping to save money on shipping labels Factor in all fees Work with providers	Knowing how to reduce shipping costs increases profits and streamlines fulfillment. Learn how you can trim costs and shave time off Missing Factor in all fees	13 Ways To Save on Shipping Costs · 1. Negotiate Your Rates · 2. Claim Refunds · 3. Consider Pick-Up and Delivery · 4. Print Postage at Home · 5. Choose From negotiating with carriers to liaising with suppliers, here are 12 tips to effectively reduce & manage your shipping costs Shipping costs vary on destination, size, weight, and service selected. This guide offers ways to reduce shipping costs with FedEx and UPS
Reduecd major carriers use the Reduced shipping fees of the actual weight Redkced dimensional weight to calculate the shipping rates. Ship;ing advantage RReduced USPS Priority Mail:. These Redced be adjusted to include or Try it for free based on dollar amounts or percentages. ShipStation users in the United Kingdom can take advantage of discounted Evri rates and create labels for ParcelShop Drop Off. In addition to obvious direct costs like postageoutsourcing shipping and fulfillment means you have new time to focus on areas of your business that drive sales, unlike packing boxes and running to the post office as orders come in everyday.	This transfer of costs happens indirectly, by sneaking shipping into the overall price of the product. The catch, of course, is that they make you initiate the refund process and many companies don't bother or don't know about it. Utilize flat-rate options when applicable and fill empty spaces in packages to prevent excess dimensions. international, oversized shipments, etc. One effective way to reduce shipping costs is by utilizing lightweight and durable packaging materials. In addition to safely transporting products, an appropriately sized box will reduce the dimensional pricing applied by FedEx and UPS. Shipping and handling are unavoidable logistics costs when running an ecommerce business.	Prepay shipping to save money on shipping labels Factor in all fees Work with providers	Leverage discounted supplies Cutting shipping costs is a top concern for any online store. Read this guide for some cost-saving ideas and questions to ask about your current process Pirate Ship offers instant access to pre-negotiated UPS and USPS discounts with no monthly fees, hidden costs, minimum volumes or commitments of any kind	Another option is working with a 3PL. An experienced third-party logistics provider will leverage the size and volume of their shipping, and be Missing 7 Solutions You Can Implement to Reduce Shipping Costs · 1. Consider outsourcing portions of order fulfillment to a 3PL. · 2. Weigh packages and

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Google Podcast. by Sifted Team. Jun 17, View All Articles. Peak Season Shipping Checklist. Download Now. Consider outsourcing portions of order fulfillment to a 3PL. Weigh packages and reduce dimensions.

Offer a flat rate shipping fee to all customers. Look into offers from platforms and marketplaces you sell on. Choose the right packaging.

Utilize a logistics intelligence tool. Optimize your shipping costs with Sifted Logistics Intelligence Outsourcing your order fulfillment to a 3PL, offering flat rate shipping, and investing in a logistics solution are just a few simple ways you can reduce shipping costs and better manage the impact of carrier rate changes on your business.

Topics: Shipping Costs , Shipping Data , Supply Chain Operations. Check out related resources at Sifted. Categories: All All Categories Articles Videos Breaking News Featured In the Press COVID Partners Guide.

Parcel Carrier Comparison Guide. In the intricate landscape of parcel shipping today, shippers navigate a complex web of carriers, each with its Amazon took the supply chain world by storm in They announced Amazon Shipping, a FedEx and UPS competitor Over the last few years, soaring shipping costs, unpredictable rate hikes, and a challenging logistical landscape Kansas City, Mo — Sifted, a leader in Logistics Intelligence, has been recognized as a Top Tech Startup by Breaking News.

USPS Announces Tentative Rate Increases for The United States Postal Service has announced rate increases Experts Share Attention-Grabbing Items from GRIs Supply Chain Dive interviewed industry experts, including It will be if your customers receive their orders on time.

The major In true duopoly fashion, FedEx and UPS have announced the same FedEx Announces Deadlines for Holiday Shipments FedEx has published dates that domestic packages must be sent Are you an FBM fulfillment by merchant Amazon seller?

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Blog Discover news, tips, and industry best practices. DIM Weight Calculator See how DIM is impacting you. Podcast Hear from industry experts on LeaderShipping. Case Studies Learn how other brands use Logistics Intelligence. This approach is where you compute the exact costs to ship your products, and then assign that cost to the customer in its entirety.

The benefit here is that the shipping costs are completely out of your hands, and instead they fall under the authority of your customers.

For example, if you have both 2-day delivery and 7-day delivery, customers can choose to pay less for the longer delivery timeline.

Still, it can be tricky to ensure that your shipping costs leave you and your customers feeling satisfied. Distance will undoubtedly have the greatest impact on your shipping fees and delivery windows. But no matter your specific distance or destination, there will likely be more than one shipping method or mode of transportation involved e.

Depending on the carriers your brand partners with, this will directly affect your expenses, as well. Most carriers have definitive shipping zones that dictate how much your company will pay. These zones make shipping costs a lot easier to understand as compared to using a strictly mileage-based pricing strategy.

For domestic shipping across the U. The zone naming is based on the origin address, which is defined as Zone 1—subsequent zones are classified based on their distance from said address. The further the gap between each zone, the higher your shipping fees are going to be.

Shipping companies can charge by package weight or dimensional weight. Weight-based pricing is fairly straightforward: the more a package weighs, the more it costs to ship.

Because the space on a delivery truck is limited, dimensional weight takes into account package density to determine your shipping costs. The larger and heavier a package is, the more expensive it is to ship.

Keep in mind, however, shipments are charged by either their actual weight or the dimensional weight whichever turns out to be greater. In the age of Amazon, customers have come to expect lightning fast shipping at little to no cost on their end.

Although same day or overnight delivery is possible, those options are likely going to cost more than customers are willing to pay. Two-day delivery is a bit more reasonable, but a 3- to 4-day window is even more practicable and cost-effective for the majority of ecommerce sellers.

Did you realize that your packing materials impact the overall cost of shipping? At times, this can be easier said than done. The trouble is, this strategy can be expensive if your carrier uses dimensional weight pricing.

Aside from thinking through the size of your packaging, you also need to consider the quality of materials. If you try to save money by using cheaper packing supplies, your shipments run the risk of being damaged in transit.

When this happens, the likelihood of returns is bound to increase—causing you to lose money on those shipping costs and the sale as a whole. Even if your company incorporates the help of robots and other machinery, the cost to acquire and maintain this kind of machinery will eventually have an effect on your overall shipping costs.

Fuel costs have certainly been a hot topic as of late, no doubt because fuel prices started to surge ahead of the busy summer travel season. In the same way fuel costs impact anyone with a personal vehicle, they also play a significant role in the world of shipping and fulfillment.

Regardless of which freight or delivery service you use, all modes of transportation rely on fuel. And when fuel prices are on an upward trajectory, you can expect your shipping costs to follow suit.

But once these prices stabilize or start going down , then the costs for air freight, ocean freight, trucking, and shipping containers tend to go down as well.

If your ecommerce brand ships to international customers, duties and taxes will definitely affect total shipping charges. Surcharges are basically all the miscellaneous expenses that come with shipping your products.

Although delivery surcharges can really vary, the most common examples include:.

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