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.

Table 1. Standard Shipping by Regular MailFor standard shipping, the store charges a flat rate per product. The rate depends 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
Figure 1. Customer from New York, United States
A customer 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
Figure 2. Customer from New Jersey, United States
A customer places two orders: the first order is for three hardcover books for himself, and the second order is for one hardcover book for a friend 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
Table 2. Express Shipping by CourierFor 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
Figure 3. Customer from Paris, France

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.

Table 3. Delivery by company truckThe shipping charge is based on the weight of the product per pound. No other shipping charges apply.
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
Figure 4. Customer from Winnipeg, Manitoba

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
Table 4. Standard Shipping by Regular MailIf the customer lives outside of the department store delivery by truck radius, all products are shipped by standard mail. The shipping charge is based on the product's weight, plus an extra cost per order. An extra cost per product is charged for international orders.
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
Figure 5. Customer from Plattsburgh, New York

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
Figure 6. Customer from Mexico City, Mexico

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