The Complexities of Shipping & Handling Fees

Curt Barry, president, F. Curtis Barry & Co., adds another element to be factored into your S&H costs: freight damages. “Look at the cost of the outbound freight, also taking into account the damages and freight losses.”

Next, include a portion of your pick and pack labor costs and the cost of shipping materials, says Barry. “Factor in some percentage of outbound packages that result from orders received,” he says. “Take your number of orders and the percent that will ship with a second package, say 120 packages for every 100 orders. Look at what percentage of backorders will have to ship in additional packages.”