Shipping Management

The eCommerce Shipping Process

Ecommerce shipping covers everything from organizing transport to keeping customers informed after purchase.

It’s much more complex than just dropping products at the post office. A complete shipping workflow involves inventory management, carrier selection, packaging, budgeting, timing, and handling returns.

In this guide, we’ll cover the essentials:

• How to calculate shipping costs

• Pricing your products with shipping in mind

• Choosing a shipping strategy

• Packaging, labeling, and insuring orders

• Preparing customs paperwork

• Picking the right fulfillment method

Finally, we’ll show how Multiorders can help you streamline and automate the entire process.

Shipping Costs

Calculating Shipping Costs

Accurate shipping cost calculation is key for setting product prices and choosing a shipping strategy.

Factors that influence costs include:

• Product dimensions & weight – Carriers use both actual and dimensional (DIM) weight. If DIM weight is higher, you’ll pay more. USPS also offers cubic pricing for small but heavy items, based on size and distance rather than weight.

• Shipping destinations – International orders cost more. Customs restrictions and duties may apply.

• Value of products – High-value items should be insured, even though it raises costs.

• Delivery times – Customers may pay more for express delivery depending on their location.

Shipping Cost Calculators

Each carrier has its own models and calculators:

• USPS shipping price calculator

• FedEx shipping price calculator

• UPS shipping price calculator

• Royal Mail shipping price calculator

• DHL shipping price calculator

• DPD Local shipping price calculator

• Parcel2Go shipping price calculator

• Parcelforce shipping price calculator

If you use USPS but don’t qualify for Commercial pricing, Multiorders gives you USPS Commercial Plus rates automatically, no matter your order volume.

Setting Up Business Accounts

Business accounts unlock discounts and extra features:

• Royal Mail Online Business Account (OBA) – online management, discounts, and additional services.

• DHL for Business – reduced rates, flexible payments, and dedicated customer service.

Considering Profit Margins

Shipping costs directly affect profit margins. Always calculate carefully.

Example breakdown:

• Cost of Goods: $20

• Shipping Fee: $3

• Packaging Cost: $0.75

• Credit Card Processing: $0.85

• Total Cost: $24.60

With a 50% profit margin, your selling price should be $49.20. That leaves you with $24.60 profit per order after covering expenses.

Top 10 Shipping & Tracking Benefits with Multiorders

Once you know your costs, it’s time to decide who covers them — you, the buyer, or both. Multiorders helps implement different strategies, including:

Offer Free Shipping

According to Jungle Scout’s Q2 2021 Consumer Trends Report, 66% of shoppers expect free shipping on all orders, and 80% expect it for orders over a certain amount.

Free shipping isn’t free — someone pays. But you can make it work by:

• Raising product prices slightly to absorb costs

• Offering free shipping on orders above a threshold

• Running free shipping promotions during slower sales periods

👉 With Multiorders, you can set rules and automation to apply free shipping conditions across channels.

Flat Rates, Table Rates & Real-Time Rates

• Flat rate shipping – Simple, the same fee for every order. Works best if products are similar in size and weight.

• Table rate shipping – Define rates by rules (destination, weight, product type, etc.). More accurate than flat rates.

• Real-time rates – Pull live rates directly from carriers like FedEx, UPS, or DHL to show exact prices at checkout.

You can also combine strategies (e.g., free standard shipping + paid expedited options).

Shipping Insurance

Carrier liability usually covers up to $100 (FedEx, UPS, USPS) and requires proving carrier fault — a slow and uncertain process.

Dedicated shipping insurance provides:

• Peace of mind – protection against loss, damage, or theft

• Less paperwork – one policy covers all shipments

• Protection from mishaps – avoid heavy losses after accidents

• Better customer service – send replacements quickly without disputes

👉 Multiorders integrates with carriers and allows insurance details to sync automatically into your workflow.

Packaging Options

• Corrugated boxes – durable, versatile, protects almost any item

• Padded mailers – perfect for small, delicate items

• Poly mailers & envelopes – lightweight and self-sealing, great for clothing

Customs Declarations & Forms

International shipments require accurate paperwork. Mistakes can cause delays, returns, or even seizure.

Multiorders helps by automatically generating customs forms when you create shipping labels.

Key steps include:

• Create a commercial invoice template (shipper details, recipient details, tracking number, HS code, value, reason for export, Incoterms, etc.)

• Write accurate goods descriptions (e.g., “Gold ring 100%” instead of “Jewelry”)

• Use the correct HS code (find via government sites, carriers, or Multiorders tools)

• Identify the country of origin to qualify for duty exemptions

• State your Incoterms® (DDP vs DAP) clearly at checkout and on paperwork

👉 Multiorders simplifies this by generating invoices, labels, and customs forms in one click.