The total shipping cost is the total price charged to the customer to deliver the order. This amount is the sum of the shipping rate and the costs of handling products from the warehouse to the loading dock.
See how they are calculated:
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Shipping rate: is the rate listed in the shipping policy, and corresponds to the rate of a carrier or a pickup point. Does not consider warehouse and loading dock costs. It takes into consideration the following aspects:
- A fixed shipping cost
- Additional shipping costs: such as weight- and price-based charges, insurance and shipping charges.
The shipping rate is calculated by adding the fixed cost to the additional charges.
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Loading dock fee: you can add an extra cost for integrating a warehouse with a loading dock.
- To do that, you must fill in the
Extra fee
field when adding or editing a loading dock on the Warehouse page.
- To do that, you must fill in the
So, in general, the total shipping cost is calculated as follows:
If the price-based charge is lower than the insurance charge, the system only considers the insurance charge. The price-based charge will not be taken into account for the total shipping cost. The best carrier is chosen based on its shipping rate, which does not consider loading dock and warehouse costs (if any). To simulate shipping options for customers, use the Shipping simulator.