Shipping Price Calculation

This section explains how CORESense calculates shipping prices for all sales channels. All available shipping options and associated prices are generated dynamically based on shipping cost drivers defined separately for each SKU. CORESense provides three shipping cost drivers, Real-time, Weight Table and Fixed Price.

Cost Driver	Description
Real-time	Using direct integrations with UPS, FedEx, and USPS; CORESense retrieves the cost to ship the goods based on weight, dimensions, number of boxes, number of shipments and associated sources and destinations. Once the final cost is calculated, a percentage or dollar amount markup is applied. For example, a customer who purchases two products, each with a single SKU. One SKU is being drop-shipped from a vendor in FL to the customer in NY. The other SKU is being picked, packed and shipped from your warehouse in TX to NY. Each shipment is calculated separately in real-time from UPS , FedEx, and USPS using their own box sizes, weights sources and destinations. Note:The dollar or percentage markup is defined by the Live Shipping Adjustment System Setting in the Back Office.
Weight Table	The total weight of the SKUs assigned to this driver are compared to a weight table setup and managed by your company. A separate weight table can be defined for each shipping method.
Fixed Price	This represents a single, fixed price for each shipping method. For example, UPS Ground is $10, UPS 3 Day Select is $20, UPS Next Day Air is $40, etc. The fixed price is considered per unit ordered, not for the entire order.

Calculation

To calculate the shipping price, CORESense groups all SKUs in the order by their associated shipping cost drivers. Then, for each group, CORESense calculates the total shipping price for each shipping method. For example, consider a retailer who ships via UPS and purchases three products, each with a single SKU. Two SKUs are calculated in real-time using UPS real-time rates, and one SKU is calculated using a fixed price. Using the UPS Ground shipping method, the cost for shipping the two SKUs using the UPS real-time calculations is $5.50 (including a 10% markup). The fixed price for the third SKU is $4.50. This creates a total shipping price of $10 for the UPS Ground shipping option. This process is performed for each shipping method individually.