Shipping Rates

Shipping rates calculation provides real-time pricing from carriers based on package details, destination, and service level. This guide covers rate shopping, comparison, and optimization.

Overview

Shipping rates enable you to:

• Calculate shipping costs
• Compare carrier rates
• Optimize shipping spend
• Display rates to customers
• Manage rate rules
• Analyze shipping costs

Accessing Rates

Navigate to Shipping → Rate Calculator or access during shipment creation.

Understanding Rates

Rate Components

Component	Description
Base Rate	Standard shipping charge
Fuel Surcharge	Variable fuel cost
Residential	Home delivery fee
Delivery Area	Remote area surcharge
Oversize	Large package fee
Insurance	Declared value coverage

Rate Types

Type	Description
Published	Carrier list rates
Negotiated	Discounted rates
Contract	Custom agreements
Promotional	Special offers

Rate Factors

Factor	Impact
Weight	Actual package weight
Dimensions	Dimensional weight
Distance	Zone-based pricing
Service	Speed of delivery
Special Handling	Extra requirements

How-To Guides

How to Calculate Shipping Rates

Rate Calculator

1. Go to Shipping → Rate Calculator
2. Enter origin address
3. Enter destination address
4. Add package details:
   • Weight
   • Dimensions
   • Declared value
5. Click Get Rates
6. View all carrier options

Rate Request Example

Rate Request:

From: Los Angeles, CA 90001
To: New York, NY 10001

Package:
- Weight: 10 lbs
- Dimensions: 12x10x8 in
- Declared Value: $200

Results:
┌─────────────────────┬───────────┬─────────────┐
│ Service             │ Transit   │ Rate        │
├─────────────────────┼───────────┼─────────────┤
│ USPS Priority       │ 2-3 days  │ $15.45      │
│ FedEx Ground        │ 4-5 days  │ $18.92      │
│ UPS Ground          │ 4-5 days  │ $19.15      │
│ FedEx Express Saver │ 3 days    │ $42.50      │
│ UPS 3 Day Select    │ 3 days    │ $44.20      │
│ FedEx 2Day          │ 2 days    │ $68.75      │
│ UPS 2nd Day Air     │ 2 days    │ $71.30      │
└─────────────────────┴───────────┴─────────────┘

How to Compare Carrier Rates

Rate Shopping

Compare automatically:

1. Create shipment
2. System queries all carriers
3. View comparison table
4. Select best option

Comparison View

Rate Comparison - 10 lb package LA to NYC

Best Value:
USPS Priority - $15.45 (2-3 days)

Fastest:
FedEx Priority Overnight - $125.80 (Next day)

Ground Options:
├─ USPS Priority: $15.45 (2-3 days)
├─ FedEx Ground: $18.92 (5 days)
└─ UPS Ground: $19.15 (5 days)

Express Options:
├─ FedEx 2Day: $68.75 (2 days)
├─ UPS 2nd Day: $71.30 (2 days)
└─ FedEx Overnight: $125.80 (1 day)

Selection Criteria

Choose based on:

• Cost (cheapest)
• Speed (fastest)
• Reliability (best carrier)
• Customer preference

How to Set Up Rate Rules

Automatic Selection

Create rules for auto-selection:

Rule: Economy Orders
Condition: Shipping Method = Economy
Action: Select cheapest ground option

Rule: Express Orders
Condition: Shipping Method = Express
Action: Select FedEx 2Day

Rule: Heavy Packages
Condition: Weight > 50 lbs
Action: Use FedEx Freight

Configuring Rules

1. Go to Settings → Shipping → Rate Rules
2. Click New Rule
3. Define conditions
4. Set carrier/service selection
5. Set priority order
6. Activate rule

How to Manage Negotiated Rates

Uploading Rate Cards

1. Go to Settings → Shipping → Rates
2. Select carrier
3. Click Upload Rate Card
4. Import CSV/Excel
5. Set effective dates
6. Activate rates

Rate Card Format

Zone,0-1lb,1-2lb,2-3lb,3-4lb,4-5lb
2,8.50,9.25,10.15,11.20,12.30
3,9.75,10.50,11.40,12.45,13.55
4,11.00,11.75,12.65,13.70,14.80
5,12.25,13.00,13.90,14.95,16.05
6,13.50,14.25,15.15,16.20,17.30
7,14.75,15.50,16.40,17.45,18.55
8,16.00,16.75,17.65,18.70,19.80

How to Calculate Dimensional Weight

DIM Weight Formula

Dimensional Weight = (L × W × H) / DIM Factor

DIM Factors:
- Domestic: 139 (FedEx/UPS)
- International: 139-166
- USPS: Varies by service

Billable Weight

Package: 24 × 18 × 12 inches, 15 lbs

DIM Weight: (24 × 18 × 12) / 139 = 37.4 lbs

Billable Weight: MAX(15, 37.4) = 37.4 lbs

Note: Charged at DIM weight (higher)

How to Add Surcharges and Fees

Common Surcharges

Surcharge	Description	Amount
Fuel	Fuel cost	% of base
Residential	Home delivery	Flat fee
Delivery Area	Remote location	Flat fee
Signature	Required signature	Flat fee
Saturday	Weekend delivery	Flat fee
Oversize	Large package	Flat fee

Adding Custom Fees

1. Go to Settings → Shipping → Surcharges
2. Add fee type
3. Configure calculation:
   • Flat amount
   • Percentage
   • Per pound
4. Set conditions
5. Apply to rates

How to Display Rates to Customers

Checkout Rates

Configure rate display:

1. Calculate rates at checkout
2. Display options to customer
3. Allow selection
4. Apply to order

Rate Display Options

Option	Description
Real-Time	Live carrier rates
Table Rates	Predefined pricing
Flat Rate	Single price
Free Shipping	Above threshold

Free Shipping Rules

Free Shipping Rules:

Rule 1: Order > $100 → Free Ground
Rule 2: Order > $200 → Free 2-Day
Rule 3: VIP Customer → Free Express

How to Analyze Shipping Costs

Cost Reports

Report	Shows
Cost by Carrier	Spend by carrier
Cost by Service	Spend by service level
Cost per Order	Average shipping cost
Cost Trends	Over time analysis

Cost Analysis

Shipping Cost Analysis - January 2026

Total Spend: $45,678
Total Shipments: 2,340
Avg Cost/Shipment: $19.52

By Carrier:
├─ FedEx: $22,500 (49%)
├─ UPS: $15,200 (33%)
└─ USPS: $7,978 (18%)

By Service:
├─ Ground: $28,400 (62%)
├─ Express: $12,300 (27%)
└─ Overnight: $4,978 (11%)

Advanced Features

Rate Shopping API

Integrate rate comparison:

• API rate requests
• Real-time quotes
• Batch rate shopping
• Custom integration

Rate Optimization

Reduce shipping costs:

• Carrier negotiations
• Service optimization
• Package optimization
• Volume discounts

Rate Alerts

Monitor costs:

• Rate change alerts
• Surcharge updates
• Budget warnings
• Anomaly detection

Rate Auditing

Verify carrier invoices:

• Compare quoted vs billed
• Identify overcharges
• Claim refunds
• Track savings

Best Practices

💰 Cost Optimization

• Compare rates always
• Use ground when possible
• Optimize packaging
• Negotiate discounts

📊 Analysis

• Track costs regularly
• Analyze by carrier
• Identify trends
• Find savings

⚙️ Automation

• Auto rate shopping
• Rules-based selection
• Batch processing
• Alert monitoring

📋 Accuracy

• Correct weights
• Accurate dimensions
• Proper classification
• Surcharge awareness

Configuration

Rate Settings

Navigate to Settings → Shipping → Rates:

• Carriers - Rate sources
• Rate Cards - Custom rates
• Surcharges - Additional fees
• Rules - Selection logic

Display Settings

• Checkout - Customer display
• Formatting - Currency/rounding
• Comparison - View options
• Markup - Add margin

Calculation Settings

• DIM Factors - Weight calculation
• Zones - Geographic pricing
• Defaults - Standard options
• Caching - Rate caching

Troubleshooting

Common Issues

Rates not returning

• Check carrier credentials
• Verify address format
• Review package details
• Check service available

Rates seem wrong

• Verify DIM weight
• Check surcharges
• Review rate card
• Compare to carrier site

Rate shopping slow

• Check carrier response
• Review timeout settings
• Enable rate caching
• Reduce carriers queried

Customer sees different rate

• Check rate rules
• Verify markup settings
• Review display options
• Test calculation

Next Steps

Learn about Label Generation to create and print shipping labels.