What is Shipping?
Shipping is a set of actions when an item is transported from one place to another, usually from merchants to buyers. Shipping is usually executed by postal networks and delivery services companies like FedEx or UPS.
In ecommerce, retailers offer a set of options regarding product delivery. Depending on the speed of delivery, there are 5 ways of product shipping (excluding standard shipping):
Flat rate shipping and real-time carrier rate are two of the most popular shipping rate options.
Flat rate shipping is an average shipping and handling cost across orders in a category. The flat rate shipping method charges a fixed price for a certain weight, product value, or other categories.
Real-time carrier rate is an exact shipping rate, which is based on the customer’s location and delivery preferences. The advantage of the real-time carrier rate is that businesses can calculate the exact price for each specific order, including delivery.
Many ecommerce retailers, like, for example, Amazon, offer free shipping to customers with Amazon Premium subscription. If the retailer doesn’t provide free shipping for participating in a loyalty program, the shipping cost can be included in the product price, so that customers won’t pay for delivery. Last, but not least, companies can offer free shipping for spending a certain amount of money on their goods.
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