Example of shipping calculations
Use the Shipping notebook 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, 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.
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 |
$0.95 for paperback shipping * 2 books = $1.90 $1.95 per order * 1 order = $1.95 = $3.85
$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
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 |
A customer orders one hardcover book and one paperback book that uses 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 - 5 lbs
- 5 - 15 lbs
- More than 15 lbs
The following tables outline the department store's shipping charges.
Jurisdiction | 0 - 5 lbs | 5 - 15 lbs | More than 15 lbs | 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 |
A customer 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
Jurisdiction | 0 - 5 lbs | 5 - 15 lbs | More than 15 lbs | 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 |
A customer 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
A customer orders a propane camp stove, and a lightweight 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