How Companies Can Set Up Shipping Quote

The shipping industry is one of the most lucrative sectors in any economy; this can be attributed to the fact that the world is becoming more dynamic, advanced, and interconnected. As organizations get more global exposure, the demand for their products also increases. Freight companies play a very vital role since they help to facilitate the movement of various products from one point to the other. Over the past several years, the number of shipping companies has surged. Consequently, everyone who is in this particular sector has to look for ways to differentiate themselves from the rest. 

Top Shipping is a company that is widely recognized in the freight industry. It offers a variety of services that range from freight forwarding to delivery services. Customers can request a free quote to get a detailed analysis of the cost of shipping. In a competitive space such as the shipping industries, companies have to be creative on how they can attract and retain their customers. 

The pricing of your services is one of the most important parts of any business; offering very low pricing can ultimately hinder your growth since your profit margin would be compromised. On the other hand, by putting your prices high, you risk losing customers to your competition. Thus, you ought to know how to appropriately set your prices to remain profitable in the long run. The following are some important considerations when setting up your shipping quote. 

Determining the Shipping Cost

Shipping cost refers to the direct costs that are incurred when transporting a commodity from the warehouse to the customer’s location. Some of the factors that directly affect this price include the cost of the packaging materials, the cost of labor involved in picking, packing, and sending the items, import and export fees, as well as the courier services that will finally deliver the product to the customer’s doorstep. These are some of the crucial things you need to carefully examine and implement to avoid overpricing your services. Furthermore, if you are planning to do international shipping, you need to determine how you will collaborate with local courier services while still maintaining a healthy profit margin. 

The Importance of Ascertaining the Shipping Cost

Considering that this particular sector has many players, it’s important to do a thorough analysis to establish ways of distinguishing your company. Some firms usually offer free shipping to clients in an effort to lure them. While this can look like a smart thing from the surface, the truth is that this strategy barely sustains a company in the long run. Thus, implementing it might end up being disastrous for your business venture. 

Doing a thorough analysis of your shipping costs can help you to create a concise and fair shipping quote at checkouts. One sure way to gaining customer loyalty is through being transparent with your costs. This will help to create the image that your business can be trusted. 

Types of Shipping Rates and Charges

There are two common shipping rates that are usually adapted by freight companies. Both of these have their pros and cons; hence, you should select the one that is most appealing to you.

Calculated Shipping Prices

This refers to establishing shipping prices based on parameters that include the dimension, weight, and the particular destination of the package. Even though it’s the easiest way to determine shipping charges, the process can be quite labor-intensive if there are plenty of products. Still, it is a suitable way of establishing shipping charges since customers would have to get quotes that are much tailored to specific items, thereby getting the best rates. 

Flat Rate Shipping

Flat rate shipping is a type of transportation where a company charges the same rate irrespective of the items’ weight, size, and shape. However, in cases where the shipping would involve exporting the product abroad, new charges may apply. One key point that has to be established is the fact that shipping companies don’t operate exactly as ecommerce stores. Many online stores tailor the prices of their products to factor in shipping costs. This is in fact the reason why some of them can afford to offer free shipping. On the flip side, a company whose main focus is freight has to be very shrewd to survive. Unless you’re only offering domestic shipping, offering flat rate shipping can prove to be a tough challenge to implement. Nevertheless, it’s something that can be executed especially when you combine it with other innovative ideas. 

Things to Consider When Setting Your Shipping Cost

There are three basic components that can be used to calculate the appropriate shipping costs; these include the expected delivery time, shipping point, and the weight of the package. 

Expected Delivery Time

One of the key determinants of shipping is how soon the customer wants the particular item; some clients may be in much need thus requiring it the following day, while others can wait a couple of days or weeks before they finally receive their items. The shorter the duration, the higher the shipping. 

Shipping Point

Another price determinant is the prospective distance that would be covered when delivering the product. Shipping costs tend to be directly proportional to the distance that is expected to be covered. This implies that you should break the distances to particular zones. The stipulated zones would thereby be used for determining the appropriate shipping price. 

Weight of the Package

The weight of the package is yet another important factor when establishing cost. When using this method, you should not only use the net weight of the product itself but also every other item that has been used to facilitate the successful transportation of the product such as various support materials.


Shipping has become a very integral part of our modern-day life. A lot of people and industries depend on it for their daily operation. As a freight company, having a quote is extremely important since it helps in communicating the services your company is offering. Be sure to implement the strategies mentioned above when determining the shipping quote in your business.