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E-Commerce Dictionary

Shipping Costs

Definition

The amount charged to a customer for the delivery of an order.

Deep Dive

Shipping costs refer to the monetary amount charged to a customer for the transportation and delivery of goods from the seller's location to their specified destination. These costs encompass a range of expenses, including packaging materials, handling fees, freight charges from carriers, fuel surcharges, and sometimes insurance. Several factors influence shipping costs, such as the product's weight and dimensions, the distance of travel, the chosen shipping speed (e.g., standard, express), and any special handling requirements.

Examples & Use Cases

  • 1An online bookstore offers free shipping for all orders over $25 to encourage customers to increase their cart size.
  • 2A furniture retailer charges a tiered shipping fee based on the weight and size of items, ranging from $50 for small decor to $200 for large sofas.
  • 3A subscription box service includes the cost of shipping within its monthly fee, providing customers with a simplified, all-inclusive price.

Related Terms

FulfillmentLast-Mile DeliveryOrder Management System (OMS)Cart Abandonment

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