Understanding Rates

Understanding shipping rates

Quick Summary: How shipping charges are estimated, calculated, and billed.

Get a rate estimate

[pref can_access_shipping_calculator]

  1. Open your profile menu and select Shipping Calculator.
  2. Select the Warehouse, Countries, and Product information mode.
  3. Enter package details or add products.
  4. Select Get Quote.

Compare the returned services by price, transit time, and trade term. The estimate is not a final invoice.

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[pref !can_access_shipping_calculator] Ask your Account Manager for a rate estimate for the route. [endpref]

How rates are calculated

Chargeable weight

Couriers charge for the higher of actual weight and volumetric weight.

Actual weight is the package's physical weight. Volumetric weight uses the package size:

$$\text{Volumetric weight} = \frac{\text{Length} \times \text{Width} \times \text{Height}}{\text{Divisor}}$$

The divisor comes from the courier rate; for example, some services use 5000 for cm/kg . Check the service result rather than assuming one divisor.

What affects your rate

Factor Effect
Origin Warehouse or ship-from location
Destination Country and postal code
Chargeable weight Higher of actual and volumetric weight
Service Courier and service level
Contents Batteries and liquids can affect eligible services and price
Customs value Affects duties and taxes
Trade term Sets who pays duties and taxes
Surcharges Fuel, remote-area, and other service fees can apply

Trade terms

Current service choices use Delivered Duty Paid (DDP) or Delivered at Place (DAP):

Term Who pays duties and taxes
DDP The shipper pays.
DAP The recipient pays at delivery.

A DDP service bills duties and taxes to the shipper. The calculator can show them in T&D&F (taxes, duties, and fees). Courier results can show a trade-term badge.

DDU is an older label for recipient-paid duties. Current service choices use DAP or DDP. If a DDU label appears, confirm the term with your Account Manager.

See Glossary for trade-term definitions.

Review the final charge

[pref is_invoice_ui_enabled]

Open the invoice Shipments tab. The Shipping column shows the final courier charge for the order. The invoice can also show Packaging, Insurance Cost, Additional Cost, Duties, Taxes, and D&T Fees.

Pending Invoice shows Est. Shipping and Shipping. A final invoice shows Shipping, not the estimate.

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[pref !is_invoice_ui_enabled] Ask your Account Manager for the final charge breakdown. [endpref]

Final charges use warehouse or carrier measurements, the selected service, and applicable surcharges.

Rate changes

Your service agreement sets storage and fulfillment prices when those services apply. Shipping is priced separately and can change with carrier rates, fuel surcharges, or route availability.

Ask your Account Manager about current rates for your account.

Reduce shipping costs

  1. Check whether volumetric weight is higher than actual weight.
  2. Reduce package dimensions when the product allows. [pref can_access_shipping_calculator]
  3. Compare services for the same route in the Shipping Calculator. [endpref] [pref !can_access_shipping_calculator]
  4. Ask your Account Manager to compare services for the route. [endpref]
  5. Ask your Account Manager about volume pricing.

Smaller packaging and a different service can lower the estimate. Confirm the final charge on the invoice.

Troubleshooting

Issue Cause Solution
Rate is higher than expected Volumetric weight, a surcharge, or the service rate increased the charge Check dimensions and compare services
No rate is available for a route No eligible service matches the route, package, or contents Review Eligible Rules or ask your Account Manager
Calculator result differs from the invoice Final charges use measured values and applicable charges Compare the invoice lines and ask your Account Manager if unexplained
Duties or taxes are unexpected The service uses DDP or the invoice includes customs charges Review the trade term and invoice columns before requesting a change

[pref can_access_shipping_calculator] - Shipping Calculator: estimate a route before shipping [endpref] - Shipping Policy: cutoffs, delivery, and claims - Dangerous and restricted goods: declarations and courier restrictions [pref is_invoice_ui_enabled] - Billing Overview: charges and invoices [endpref] - Orders Overview - Contact Support: reach your Account Manager