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Round up or down to the nearest dollar to make it simple. Take the total amount you spend on shipping per month (or any given timeframe) and divide it by the number of orders for that same period. Start by figuring out your average shipping cost per order. If offering your customers flat rate shipping sounds appealing, how do you decide how much to charge? How to Set Your Own Flat Rate Shipping Price Advantages to the “set-your-own flat rate” method fall mostly to the customer, but can also benefit the company. Advantages to the USPS method fall mostly on the side of the company. There are advantages and disadvantages to each flat rate shipping method. Advantages & Disadvantages of Flat Rate Shipping Methods

The company then pays real-time shipping costs for each order. They set a price for shipping based on what their customers will tolerate, knowing they may lose money on large orders, but make up for it with higher margins and possibly a higher volume of small orders. These companies calculate that they can cover their overall shipping costs by charging all customers the same price per order, no matter the size of the order. Note, that while the seller pays a flat rate, they can charge their customers more or less than that amount for shipping.įlat Rate Shipping for Customers: Some DTC companies offer flat rate shipping to their customers, which has little to do with the actual cost of shipping an order. For most brands, the 70lb limit eliminates the need for weighing and measuring orders. All you have to do is pick and pack the order. The price includes the cost of the box, insurance, tracking, and shipping. There are several box sizes to choose from, each set at a different price.

for delivery in 1-3 days, depending on their destination. Packages can be shipped anywhere in the U.S. USPS charges sellers one flat rate to ship a certain size envelope or box, as long the contents don’t exceed their 70lb.