The Cost of Shipping

For those who buy and sell online, shipping is an extremely important part of business-and of getting a good deal. It's also one of the least understood factors for buyers and sellers alike. Below, we take a look at the cost of shipping-for consumers, retailers and our environment. THE OF COST SHIPPING FedEx Cost to Consumer: RISE IN SHIPPING COSTS: With fuel costs increasing, many parcel delivery companies are passing the costs to consumers. Compare the cost of shipping a 20-pound package in 2009 to 2010. PRICE OF DOMESTIC SHIPPING: The cost to ship an item is primarily determined by the weight and destination of the package. 2010 $7.86 2010 $7.86 UPS FEDEX USPS 1 LB 20 LB 40 LB 60 LB +4.9% +5.9% 2009 2009 ZONE 2 $7.48 $7.40 UPS FEDEXX $11.48 $7.86 $7.86 RESTOCKING FEES: $4.90 Where there's shipping, there are inevitably returms. The restocking fee for an item could be upwards of 25% of the original purchase price, making that great deal worth it only if you're sure you'll be keeping the item in question. 88888888888 ZONE 5 100% $26.46 $18.81 50% $10.62 $5.66 Apple Best Buy Toys'R'Us Target Dell ZONE 8 Macy's ADDITIONAL CHARGES: Special requests can add up to $20 to your domestic shipping, so beware the fine print. $25.51 Special Handling Charge: $6.50-$7.50 Value in Excess of $100: $1.95/lbs $12.50 $20.00 Saturday Delivery: Hazardous Material: Prices from FedEx Cost to Retailer: A 2008 survey found that 40% of online shoppers didn't commit to a purchase due to shopping costs. That same survey found that small businesses paid 50% more than larger businesses in annual shipping costs. O Did not purchase Small businesses (under 20 employees) 40% Remaining businesses O Purchased RISE IN SHIPPING COSTS: COST OF RETURNS: Weak sales and low consumer confidence make the rise in Total Return Amount: shipping costs even harder for retailers to bear. Freight shipping in particular has tripled in cost since last year, making it harder and more expensive to get goods to consumers. 250 $207.9 200 $185.5 40ft Container from Hong Kong to Los Angeles 150 $879 $2,000 $2,624 100 50 -- 3000 2500 2007 2008 2009 2000 Retailers often have to swallow the cost of returned items. Total Return Costs as Percentage of Annual Sales: 1500 1000 7.2% 8.7% 8.0% 500 July 2009 March 2009 July 2010 2007 2008 2009 Cost to Environment: Shipping, whether by land, sea or air, has a measurable impact on the global climate. ENERGY USED BY MODE OF SHIPPING: Air (B747) 15 Land (Truck) 4.5 Land (Rail) .4 Sea Freight MEASURED IN JOULESTHOUSAND METRIC TONS OF CARGO CARBON EMISSION BY MODE OF SHIPPING: Air (B747) 1073g Land (Truck) 333g Land (Rail) 749 Sea Freight 31g MEASURED IN GRAMS/THOUSAND METRIC TONS OF CARGO ANNUAL CARBON EMISSIONS BY MODE OF SHIPPING: 1.12 BILLION Shipping by air releases the most carbon emissions per metric ton of cargo, but it's shipping by sea that emits the most carbon emissions per year. This is largely due to sea freights providing transportation for 90% of global trade. 670 MILLION GLOBAL TRADE 010% OTHER 90% 2008 2008 How Much!?!: Some items are little harder and far more expensive to ship from coast to coast. COST OF GROUND SHIPPING FROM NEW YORK TO CALIFORNIA: Bike $107 Surfboard $135 20lb Dog $313 Couch $469 Pinball Machine $535 Volkswagen Passat $926 Thoroughbred Horse $1129 20ft Sailboat $2303 NUMBERS FROM USHIP.COM Sources: FedEx.com , UPS.com, USPS.com , Paypal.com, The Independent, Reuters, NYTimes, NRF.com, 2009 Restocking Fee Survey Milo $20.83 $14.26 $14.26 $17.70 $35.97 $11.48 $25.71 $25.71 $12.27 S60.46 $44.69 $44.69 $18.81 $4.34 $16.94 $4.84 $42.98 533.63 $33.63 $10.62 $4.90 $5.66 $18.43 $18.43 $4.90 $5.77 $5.77 $171.4