So I am still extremely new to setting everything up for my startup and I am confused about what customers are paying for when they pay for shipping. For example, a customer payed over $6.50 for shipping, but when I was creating the shipping label it was only going to cost me around $3. The shipping label is the only purchase I have to make for the shipping right? Does the customer pay for the packaging I use for the product as well?
Shipping means not only the value of a shipping label, and it refers to the cost of postage and related transportation to get the package from the shipping carrier to the end consumer.
This fee includes surcharges, fuel charges, and other costs related to the distance traveled and delivery timeline chosen and sometimes it includes handling fees.
The handling fee is the labor costs that are associated with the labor of collecting inventory for an order, packing products into a box with the appropriate packaging materials, generating a shipping label, loading the shipment onto a truck, and any other movement that happens in the warehouse.
The shipping charges at the checkout are not only based on the value charged for shipping the product for the shipping carrier.
Generally, shipping costs are determined by the following factors.
1. Product weight
2. Package dimensions.
3. Shipment destination.
With the Multiple-carrier shipping label app, you can automate the shipping and packaging process and compare the rates. Where the rates are approximately the same, thus there will be no mismatch in the rates for Shopify store owners and your customers.
Thank you for replying! When a customer selects, for example, standard shipping, is that something I have to worry about, or does that all take care of itself? I'm currently using shippo and I assumed they'd automatically pick the right one. Also what if about if a customer selects First Class International or Economy. Thank you