Here's how to calculate shipping costs by volume and weight. This method can be applied to all expeditions such as UPS, FedEx, DHL, etc. Sometimes the weight of the goods is not much but the size makes the shipping cost more expensive, and vice versa. How to calculate the correct package?
How to calculate the shipping cost based on volume size and weight. The formula for calculating weight based on volume size is (L x W x H) / 6,000 and the result will be compared with the weight of the package. Where the larger size (weight) will be used as the calculation of shipping costs.
The calculation using the volumetric method as above is not very commonly known, and generally, only people who work in the shipping/expedition sector know. I myself knew this calculation when I used to work in an export-import company.
How to Calculate Shipping Costs Based on Volume and Weight Size
As I wrote above, the calculation of the cost of postage with the size of the volume is (L x W x H) cm / 6,000 and later the result is multiplied by the cost of shipping per /kg, L W H stands for Length, Width, and Height. If the result is more expensive than the calculation of the weight of the goods, the shipping costs that will be taken are the costs based on volume.
On the other hand, if the volume calculation is lower (cheaper) than the weight calculation, then the cost applied is the weight of the goods (not the size of the volume). This is a rule for almost all expedition parties, including the company where I used to work which handles goods to and from abroad.
This calculation is also applied to all e-commerce or online stores such as Amazon, eBay, Walmart, Aliexpress, and other online stores. All refer to volumetric calculations by the same standard.
For more details, please see the example calculations below for a clearer illustration.
Example 1 calculation of postage costs with volume and weight sizes
For example, I will send goods in the form of 10 books and after being packaged in cardboard, the total weight will be 3 kg. The cardboard package is 40cm x 30cm x 20cm. And the shipping cost to the destination city is $1 /per kg.
- Calculation of postage based on weight: 3 kg x $1 = $3
- Calculation of postage based on volume: 40x30x20 / 6,000 = 4 kg x $1 = $4
From the calculation above, it is clear that shipping costs based on volume are more expensive, so the expedition / online shop will apply the price based on volume ($4) because our packages require a larger space in containers/trucks.
Example 2 calculating shipping costs with volume and weight measurements
This second example, for example, I will send goods in the form of 20 books and after being packaged with cardboard, the total weight will be 6 kg. The cardboard package measures 40cm x 30cm x 25cm. And the shipping cost to the destination city is $1 / per kg.
- Calculation of postage based on weight: 6 kg x $1 = $6
- Calculation of postage based on volume: 40x30x25 / 6,000 = 5 kg x $1 = $5
From the example calculation above, it can be seen that the shipping cost based on weight is more than the shipping cost calculation based on volume or size. So the expedition will apply shipping costs based on the weight of the package ($6), not the weight of the volume.
Example 3 calculation of postage costs with volume and weight sizes
In this third example, I will send goods in the form of 2 books and after being packaged in cardboard, the total weight will be 900 grams (0.9 kg). The cardboard package measures 20cm x 15cm x 10cm. And the shipping cost to the destination city is $1 / per kg.
- Calculation of postage based on weight: 0.9 kg x $1 = $1 (under 1kg will still be charged 1kg)
- Calculation of postage based on volume: 20x15x12 / 6,000 = 0.6 kg x $1 = $1 (under 1kg will still be charged 1kg)
From the example above, it can be seen that there is no difference between shipping costs based on weight and volume, so the results are the same they will apply $1 for shipping cost. because both do not exceed the maximum limit of 1kg then both will be billed for shipping 1 kg.
Can we intentionally reduce the size of the package so that shipping costs don't hit the volume?
For the process of packaging or preparing packages in boxes or cardboard, until now there are no official regulations. So please, if you can, compact it so that the package size remains small so that it is not calculated based on size (volume).
However, keep in mind that the safety factor of the goods should not be ignored, especially if the goods sent are very vulnerable to being destroyed or damaged if they are too close or in contact with other goods.
If the condition is that the goods must use a large place, you should not force it to use a small package so that the safety of the goods on the way is not guaranteed. After all, you are looking for profit from the sale of goods, not from the difference in shipping costs.
If you are already maximal in reducing the size of the package but still getting hit by volume, just explain to your buyer that the package is affected by volume. Buyers will also understand if you can no longer reduce shipping costs because the condition of the product is like that.
Consider using a cargo shipping service
For those of you who have items with large sizes such as bicycles, TVs, large sports equipment, etc. I suggest you to use a cargo delivery service, and this cargo service is also available on almost all major expeditions in every country.
E-commerce parties suggest that if our products or goods are more than 5 kg, we are advised to use a cargo delivery service, of course, to save on shipping costs. If you are not sure, just try to calculate the cost of using cargo and the cost of using regular shipping.
The disadvantage of this cargo service is that the delivery process may be slower, for normal delivery between cities which is usually 2-3 days, if using cargo it can take up to 3-5 days. However, if you or your customer can tolerate this delivery time, the shipping costs saved can be quite a lot.
For example in e-commerce, if I want to buy a stationary bike for exercise at home that weighs 29 kg and I choose the Regular delivery process (2-4 days) then I have to pay a shipping fee of $31.
However, if I choose to use cargo shipping with the same item, then I only need to spend $8 for shipping with estimated delivery of 3-5 days.
- Regular (2-4 days) $31
- Cargo (3-5 days) $8
It seems that when viewed from the delivery time is not too far away, I only need to wait a day or 2 longer than the regular delivery. However, in terms of costs or shipping costs, I was able to save on shipping costs of $23 with a delivery time difference of only 2 days.
How to use cargo delivery service
Generally, all major expeditions such as UPS, FedEx, DHL already have cargo delivery services. However, in some regions or cities, there are usually expeditions that specialize in delivering cargo, it's just a matter of comparing the price difference at this stage.
If you sell on e-commerce, don't forget to activate the cargo delivery service in the shipping options so that buyers can directly choose shipping via cargo in your online store.
If you don't use e-commerce or send it personally, please come first to the nearest expedition and ask about the process of sending cargo packages, usually, there is a special place or special way to send packages with cargo services, or you can pick them up later by courier. Depending on the services provided by each expedition.
Hopefully, this article on how to calculate shipping costs based on volume and weight sizes is useful. If you have any questions, please save them in the comments column below as usual. Keep being a wise user! #beWiseUser!