Why are my shipping costs higher than expected?

Service Limitations:  Every shipping carrier has its own network and coverage areas. If your customer's address falls outside the standard delivery zone of your preferred carrier, the shipment might get automatically rerouted through a different carrier with potentially higher rates. Additionally, certain carriers might not offer specific services (like overnight delivery) to particular regions, leading to a switch to a pricier alternative.

Automation Adjustments: Shipping automation systems are designed to optimize efficiency and meet delivery timelines. However, they can sometimes misinterpret settings or rules, leading to an unintended upgrade in service level. For example, a system might automatically select an expedited shipping option to guarantee delivery by a specific date, even if a standard service would suffice.

Dimensional Weight Pricing: Dimensional weight (DIM weight) is a pricing technique used by carriers to account for the space a package occupies in their vehicles. It's calculated based on the package's length, width, and height. If a package has a large volume but a low weight, the DIM weight might be higher than the actual weight, resulting in increased shipping charges. This is especially relevant for lightweight but bulky items.

Automation Errors: Shipping automation systems, while incredibly helpful, are not immune to glitches or miscalculations. Occasionally, errors in rate tables, incorrect service selections, or misinterpretations of shipping rules can lead to inflated shipping charges. Regular audits and reviews of your automation settings can help mitigate these risks.

Inaccurate Product Information: If the weight or dimensions of a product are entered incorrectly in your system, the shipping estimates generated during checkout will be inaccurate. This can lead to either overcharging or undercharging customers, both of which are undesirable. Ensure that product information is consistently updated and accurate to avoid such discrepancies.

Surcharges: Surcharges are additional fees levied by carriers under specific circumstances. These include peak season surcharges (during holidays or high-volume periods), fuel surcharges (to offset fluctuating fuel costs), remote area surcharges (for deliveries to less accessible locations), and residential delivery surcharges (as residential deliveries are typically more expensive than commercial ones). Be aware of these potential surcharges and factor them into your shipping estimates.

Optional Services: Some additional services offered by carriers, such as insurance for high-value items, signature confirmation for added security, or expedited shipping for faster delivery, come at an extra cost. These services, while valuable, can significantly increase the overall shipping charge. Clearly communicate these options to customers and allow them to choose the services they require.