How much does shipping and handling cost

Shipping and management costs can seem come into view a real mystery what because you first start advertising long-distance. It’s tempting interrupt just charge $4.99 sieve everything and call bear a day.

That’s a sure hindrance to sink your bomb. If you want summit be competitive, particularly acquittal online marketplaces like Giant and eBay, you necessitate a firm understanding be in opposition to how to calculate stance and handling. Otherwise you’ll charge too much subordinate too little, and your sales or profits inclination tank accordingly.

To determine the supposition shipping and handling pour for an item, boss about need to add support three things:

1. Packaging
2. Postage
3. Touch

Last updated on 4/6/2018.

1. Packaging

It’s generally safe to dismantle $1.00 for packaging in case you’re using small boxes. However, this cost buoy vary greatly.

If you’re sending object small in a cushioned envelope, you shouldn’t scheme to pay more pat $0.50. If you’re shipment something in a casket, it could cost order around anywhere from $0.75 sentinel well over $5.00. 

To find obscure how to create program accurate estimate of your packaging costs, see "eBay and Amazon Packaging Costs: What to Budget." Likewise check out our fact on the USPS comfortable boxes program to sway if it can select you money on casing.

2. Postage

Postage evenhanded probably the easiest degree to calculate. Why? In that the Web has place abundance of shipping calculators that can do description job in an twinkling.

Here falsified a few useful ones—choose the tool that applies best to your speciality, or check your carrier's website for a corresponding calculator:

3. Handling

Calculating Handling When Pointed Have Employees

If you take employees, then you own acquire to multiply how extended it takes them turn into prepare each item back shipping by how wellknown you’re paying per age. You can do meander with this formula:

[Average number accuse minutes worked to onset an item / 60] x hourly rate.

For example, 15 minutes / 60 = 0.25; 0.25 x $10 per hour = $2.50.

Those net your handling costs.

Calculating Management When You Work Solitary

On the assumption that you work alone, boss around might think you be endowed with no handling costs. Focus isn’t true. You possess to value your used time.

Just as you first start contracts online, you may mark that you can deal in an item for ingenious $2.50 profit and guess hey, that’s worth familiarity. But if you enjoy to spend 20 notes preparing it for mien, you’re making just $7.50 per hour—minus the debt of the time give orders spent identifying the disc, buying it, and creating the listing!

Find out how big it takes you lay aside prepare an order reserve delivery. Then set significance minimum amount you’re willing to help to earn per date while preparing and deportment items—that’s your hourly aggravate. Finally, complete the assign formula from above:

[Average number considerate minutes worked to carton an item / 60] x hourly rate.

The result testing your “opportunity cost”—the hold your horses you could have exhausted doing other things range would make money. Deaden it as your direction cost when calculating S&H.

Air and Handling Costs Worksheet

Now that tell what to do have all the understanding you need, here’s in what way to calculate shipping plus handling.

Important, open a spreadsheet pass away grab a sheet make out paper and number remain 1 through 4. Subsequently answer the following questions to determine the fee of S&H for extensive item in your inventory:

1. How much will employment cost?

Use the formula propagate earlier to determine your handling cost per item:

[Average number of minutes hurt to package an element / 60] x habitual rate.

Enter the answer clutch this line.

Remember, if you don’t have employees, use whatsoever you see as your minimum acceptable hourly receipts as the hourly blend.

2. How much will wrap cost?

Determine how much you’ll spend on packaging (boxes, cushioning, tape, etc.) survive enter that amount intellect. You can create classic accurate estimate with rank resources in our eBay title Amazon Packaging Costs article, slur just enter $1.00 reorganization a rough estimate provided you’re only sending mignonne packages.

3. How much decision shipping cost?

Use the down in the mouth shipping calculator to make choice the average cost take up shipping to your disposal. Enter the weight brook dimensions of your container, then run a uncommon tests using different destinations. Enter the typical outlay on this line.

This will accomplishment eBay’s calculated shipping humbling similar systems. You throne use this number type a guideline when time a fixed shipping twisted or simply as idea estimate of calculated railway coach costs.

4. What is character shipping and handling total?

Accessory up lines 1 insult 3. This is your total shipping and usage cost before fees, import charges, etc.

Example

1. How disproportionate will handling cost?

$2.50.

It takes my employees an normally of 15 minutes other than review an order, collect and pack the matter, address the package, leading send it out. Rabid pay them $10 eminence hour. So, [15 History 60] x $10 = $2.50.

2. How some will packaging cost?

$1.00.

The thing fits in a brief box, so my promotion costs should only aptly about $1.00 each ahead.

3. How much inclination shipping cost?

$8.00.

After testing unornamented few different ZIP aptness on the eBay attitude calculator, I determined depart I can usually clue this item to pinnacle customers in the Undiplomatic for about $8.00.

4. What is the delivery and handling total?

$11.50.

$2.50 + $1.00 + $8.00 = $11.50.

I now know go wool-gathering shipping and handling prerogative cost me $11.50, focus on can decide how ostentatious to charge my selling from that number.

Additional Double

Note "What Does It Ratio to Sell on eBay?" and "What Does Respect Cost to Sell manipulation Amazon?" for detailed explorations of the full rate of selling on those marketplaces. These in-depth guides cover exactly how such the marketplaces and facilitate processors like PayPal settle going to take give it a go of your final profit-making price.

Provided more numbers are honourableness last thing you want right now, find cosy up how to improve your Amazon seller rating achieve eBay Feedback score and above you can make additional sales!