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How Shipping Fee Is Computed
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Shopbay.org
8 months ago
DifficultyIntermediate

Consider following purchase order as an example to illustrate that shipping fee will be different by having different shipping types for the same order, and how it affects final order total.

Item Quantity Weight Unit Price Subtotal
Product 1 1 10g $10.00 $10.00
Product 2 2 20g $10.00 $20.00
Product 3 5 30g $20.00 $60.00

Order Subtotal = $10.00 + $20.00 + $60.00 = $90.00

Weight Total = 10g + 20g + 30g = 60g

1. Free Shipping

In this setting, Shipping Fee = $0.00.

Order Total = Order Subtotal + Shipping Fee = $90.00 + $0.00 = $90.00.

2. Flat Fee Shipping

Set Rate per Order = $1.50

In this setting, since shipping fee is flat for all items in one single order, hence Shipping Fee = $1.50.

Order Total = Order Subtotal + Shipping Fee = $90.00 + $1.50 = $91.50.

3. Tiered Fee Shipping with base 'Order Subtotal'

Set:

Tier Floor Ceiling Rate
Tier-1 $0.00 $90.00 $0.50
Tier-2 $90.01 blank $0.00

 

In this setting, Order Subtotal falls in the range of Tier-1, hence Shipping fee = $0.50.

Order Total = Order Subtotal + Shipping Fee = $90.00 + $0.50 = $90.50.

Quiz: Assume Order Subtotal is now $10.00, what is Order Total now? [ Answer: $90.00 ]

4. Tiered Fee Shipping with base 'Weight'

Set:

Tier Floor Ceiling Rate
Tier-1 0g 50g $2.00
Tier-2 50.01g 100g $1.00
Tier-3 100.01g blank $0.00

 

In this setting, Weight Total falls in the range of Tier-2, hence Shipping fee = $1.00.

Order Total = Order Subtotal + Shipping Fee = $90.00 + $1.00 = $91.00.

Note: Under base 'Weight', we do not consider Order Subtotal when computing shipping fee.

5. Product Level Shipping Fee Surcharge

Let say now we have a new order below:

Item Quantity Weight Unit Price Subtotal Surcharge per product
Product A 1 10g $100.00 $100.00 blank
Product B 2 20g $100.00 $200.00 $2.00

 

Order Subtotal = $10.00 + $20.00 + $60.00 = $90.00

Weight Total = 10g + 20g + 30g = 60g

Product B has a shipping Surcharge per product of $2.00

Follow settings in Example 1

Shipping Fee = $0.00, Surcharge = 2 x $2.00 = $4.00 (note we purchase 2 items of Product B).

Order Total = Order Subtotal + Shipping Fee + Surcharge = $90.00 + $0.00 + $4.00 = $94.00.

Follow settings in Example 2

Shipping Fee = $1.50, Surcharge = 2 x $2.00 = $4.00

Order Total = Order Subtotal + Shipping Fee + Surcharge = $90.00 + $1.50 + $4.00 = $95.50.

Follow settings in Example 3

Shipping Fee = $0.50, Surcharge = 2 x $2.00 = $4.00

Order Total = Order Subtotal + Shipping Fee + Surcharge = $90.00 + $0.50 + $4.00 = $94.50.

Follow settings in Example 4

Shipping Fee = $1.00, Surcharge = 2 x $2.00 = $4.00 (note we purchase 2 items of Product B).

Order Total = Order Subtotal + Shipping Fee + Surcharge = $90.00 + $1.00 + $4.00 = $95.00.

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Image
Shopbay.org
8 months ago
DifficultyIntermediate