How to calculate cross-border e-commerce shipping costs? What is the method?

Now more and more people are opening stores on cross-border e-commerce platforms. If you open a store on a cross-border e-commerce platform, you need to solve many problems. Logistics is a major expense of cross-border e-commerce. Merchants need to know how to calculate cross-border e-commerce freight. The following is an introduction for everyone.

On the Amazon platform, today we take China Post registered parcel as an example. The logistics of cross-border e-commerce consists of two parts, registration fee and basic postage; the registration fee is fixed, and the basic postage is determined by the weight of the package (sent to Israel)

Tier A: The registered fee for a package weighing 0-150 grams is 16 yuan, and the basic postage is 61 yuan/kg;

Tier B: The registered fee for a parcel weighing 151-300 grams is 16.5 yuan, and the basic postage is 57 yuan/kg;

Tier C: The registered fee for parcels weighing 301-2000 grams is 17 yuan, and the basic postage is 53 yuan/kg;

Then we use the weight in ladder a, b, and c as examples to calculate the freight to Israel, setting the weight to 100 grams, 200 grams, and 400 grams.

Calculation formula for 100 grams: 100*0.061+16=22.1

200 grams calculation formula: 200*0.057+16.5=27.9

400 grams calculation formula: 400*0.053+17=38.2

It can be seen that the freight for 100g, 200g and 400g packages to Israel is 20.4, 26.6 and 36.2 respectively. However, this is the price of China Post registered small parcel with full discount. In general, if you ship goods through a freight forwarder, the freight forwarder will give a certain discount according to different channels.

The website will calculate the corresponding shipping costs for different channels, making it convenient for us to compare prices and choose the best channel.

Shopee platform to Malaysia:

For example, if the cost of a product is 25, the selling price is 30 Malaysian ringgit, and the weight of the product is 100g, how much money can you make?

The answer is 3.9 Malaysian ringgits, calculated as follows:

Free shipping for purchases over RM25. The calculation formula is: 30 minus 25 minus (A zone: 6.59-5.49 or BC zone: 9.09-7.99) = 3.9 RM

The front desk of Malaysia A zone shows that the shipping fee is 5.49, and 7.99 for BC zone (the system will change according to the buyer's region, and no operation is required by the seller), and the shipping fee of 100g = 100/10x0.11=1.1RM, this 1.1 is the fee we need to hide the price.

1.1=6.59 (actual shipping fee)-5.49 (shipping fee displayed at the front desk of area A) or 9.09 (actual shipping fee)-7.99 (shipping fee displayed at the front desk of area BC).

So the selling price is 30 minus the cost of 25 = 5RM profit, because the postage is free for orders over 25 (5.49/7.99), but we still need to pay the hidden price of 1.1RM, so the final profit is 5-1.1=3.9RM.

In addition, I would like to point out that the above data is from the past. Now it has been changed to free shipping for orders over 40 yuan, and the first weight of A, B and C areas has also increased by 0.11. The front desk is still 5.49 and 7.99. The seller's first weight is set to hide the price by default at 0.11 Malaysian ringgit. However, the entire calculation logic is still the same.

This is the end of the introduction to the calculation method of cross-border e-commerce freight. There are many cross-border e-commerce platforms now. Some cross-border e-commerce logistics cannot be transported, but now everyone is the same and can only think of other ways to keep the store alive.

Recommended reading:

How to do cross-border e-commerce for novices? What aspects need to be done well?

What are the independent cross-border e-commerce sites? Introduction to the four major sites

What does a cross-border e-commerce independent website mean? What are the advantages?