Example of shipping calculations
The Shipping notebook enables you to calculate shipping charges by using any of the following methods individually, or by adding the results of several of these methods together.
- Charge a flat rate for each product based on its shipping category
- Charge a flat rate for each product based on its weight
- Charge the same flat rate for each product (cost per product)
- Charge a flat rate for the whole order (cost per order)
The following shipping calculations are based on sample scenarios for a fictional online book store and a fictional department store. All examples are hypothetical.
Online bookstore
An online bookstore, based in Ontario, Canada, uses two shipping providers:
- Standard shipping by regular mail
- Express shipping by courier
The bookstore assigns all products in their catalog into one of the following three categories:
- Paperback: the smallest and lightest
- Hardcover: heavier than paperbacks
- Oversized: requires extra packaging and shipping costs
The following tables outline the bookstore's shipping charges.
Standard Shipping by Regular Mail
For standard shipping, the store charges a flat rate per product depending on its shipping category (paperback, hardcover, or oversized), plus a flat rate per order (cost per order). For international shipping, the store also charges a percentage of the cost of the total order.
| Jurisdiction | Paperback | Hardcover | Oversized | Cost per product | Cost per order |
|---|---|---|---|---|---|
| UNITED STATES, New York | 0.95 | 0.95 | 1.95 | 0.00 | 1.95 |
| UNITED STATES, Others | 1.95 | 2.95 | 3.95 | 0.00 | 2.95 |
| Other Countries | 2.95 | 4.95 | 5.95 | 0.00 | 4.95 |
Example 1: A customer from New York, United States orders two paperback books to be sent by standard shipping. The shipping charge is $3.85:
$0.95 for paperback shipping * 2 books = $1.90 $1.95 per order * 1 order = $1.95 = $3.85
Example 2: A customer from New Jersey, United States places two orders: the first order is for 3 hardcover books for himself, and the second order is for 1 hardcover book for his sister in Illinois. Both orders use standard shipping. The shipping charge is $17.70:
$2.95 for hardcover shipping * 3 books = $8.85 $2.95 for hardcover shipping * 1 book = $2.95 $2.95 per order * 2 orders = $5.90 = $17.70
Express Shipping by Courier
For express shipping, the shipping calculations include an extra charge per product (cost per product), regardless of the product's shipping category. For international shipping, the store also charges a percentage of the cost of the total order.
| Jurisdiction | Paperback | Hardcover | Oversized | Cost per product | Cost per order |
|---|---|---|---|---|---|
| UNITED STATES, New York | 1.95 | 1.95 | 2.95 | 0.95 | 1.95 |
| UNITED STATES, Others | 2.95 | 3.95 | 4.95 | 0.95 | 2.95 |
| Other Countries | 4.95 | 6.95 | 7.95 | 0.00 | 24.95 |
Example 1: A customer from Paris, France orders one hardcover book and one paperback book, using express shipping. The shipping charge is $36.85:
$6.95 for hardcover shipping * 1 book $4.95 for paperback shipping * 1 book $24.95 per order * 1 order = $36.85
Department Store
The online arm of a brick and mortar Canadian department store that has locations in every province, uses two shipping provider:
- Delivery by the brick and mortar store's fleet of trucks (to major cities in Canada and New York, United States only)
- Standard shipping by regular mail
The department store assigns products a shipping category according to their weight. Products fit into one of the following weight ranges:
- 0 to 5lbs
- 5 to 15lbs
- More than 15lbs
The following tables outline the department store's shipping charges.
Delivery by company truck
When the department store delivers by company truck, the shipping charge is based on the weight of the product per pound. No other shipping charges apply.
| Jurisdiction | 0 to 5lbs | 5 to 15lbs | More than 15lbs | Cost per product | Cost per order |
|---|---|---|---|---|---|
| CANADA, Others | 5.00 | 4.00 | 3.00 | 0.00 | 0.00 |
| UNITED STATES, New York | 3.00 | 2.00 | 1.00 | 0.00 | 0.00 |
Example 1:
A customer from Winnipeg, Manitoba orders a sweater and a microwave oven. The shipping charge is $65.00:
1 sweater at 1lb * $5 (0 to 5lbs) = $5.00 1 microwave oven at 20lb * $3 (More than 15lbs) = $60.00
= $65.00
Standard Shipping by Regular Mail
If the customer lives outside of the department store delivery by truck radius, all products are shipped by standard mail. When shipping by regular mail, the shipping charge is based on the product's weight, plus an additional cost per order. When an order is being shipped internationally, an additional cost per product is charged.
| Jurisdiction | 0 to 5lbs | 5 to 15lbs | More than 15lbs | Cost per product | Cost per order |
|---|---|---|---|---|---|
| CANADA, Others | 5.00 | 4.00 | 3.00 | 0.00 | 2.00 |
| UNITED STATES, New York | 3.00 | 2.00 | 1.00 | 0.00 | 4.00 |
| Other Countries | 10.00 | 5.00 | 3.00 | 5.00 | 8.00 |
Example 1:
A customer from Plattsburgh, New York, orders a compact disc, a coffee maker, and a refrigerator. The shipping cost is $174.30:
1 compact disc at .1lb * $3 (0 to 5lbs) = $.30 1 coffee maker at 10lbs * $2 (5 to 15lbs) = $20.00 1 refrigerator at 150lbs * $1 (more than 15lbs) = $150.00 1 order * $4 (cost per order) = $4.00 = $174.30
Example 2:
A customer from Mexico City, Mexico, orders a propane camp stove and a light weight sleeping bag. The shipping cost is $53.00:
1 lightweight sleeping bag at 1lb * $10.00 (0 to 5lbs) = $10.00 1 propane camp stove at 5lbs * $5.00 (5 to 15lbs) = $25.00 2 products * $5.00 (cost per product) = $10.00 1 order * $8.00 (cost per order) = $8.00 = $53.00