What's the problem with the high freight rate of this sample order?

Views:6     Author:Raymond Lin     Publish Time: 2019-04-24      Origin:Site

Problem:

We have recently received an inquiry form from the Netherlands. I intercepted part of the inquiry form and put it below:

Dear Raymond,

 

Could you maybe give me the following information regarding the 3 ARMED SPRINKLER you recommended:

It looks like a good quality product. I am really interested in this product and could potentially place an order TOMORROW (my time, Amsterdam) if everything fits my needs. So these questions are all regarding the 3-armed sprinkler, NOT the oscillator sprinkler.

If I were to place an order tomorrow, when would the expected arrival time at my door be?

2. The price per piece when ordering 25 pieces  3-armed sprinklers

3. The shipping cost for this order

4. The total price for this order

5. What courier is being used?

I am really looking forward to your reply, Raymond. Thank you in advance.

 

Kind regards

And with my reply:

The shipping costs will be around $198. The shipping cost is depend on the weight and volume. The weight is fine in this case, the product is about 0.32kg per piece, so the total is below 8kg. But the product is light with a big volume. The package is 60X60X45cm, and the shipping cost base on volume is :60X60X45/5000 =32.5kg ,$6/kg, so tht total shipping costs will be 6*32.5=$198.


Why bother with shipping costs?

As you can see from previous conversion, the shipping cost is $215 (door to door) which occupying 73% of the total order with total order price $295. Our client ask 25 pieces of garden sprinkler from us with unit price $3.2. And we all agree that the excess sample cost will give back when another order has been placed.


Why is the freight so expensive?

Freight is usually more expensive than shipping by sea which is normal. But there is a reason why it is so expensive in this order. There are three main factors affecting freight costs. They are the destination of the goods, the weight of the goods and the Sizeo of the goods.

  1. The destination of the goods: It's easy to understand that the farther you send goods, the more expensive it will be. Generally speaking, it is cheaper to send goods from China to India than to the Netherlands. Because one is in Asia next door to China, the other is far in Europe.

  2. The weight of the goods: The heavier the goods, the higher the price. Usually an extra kilogram is charged $6.

  3. The size of the goods: All containers have space restrictions. The larger the size of goods(more space used), the more expensive the freight will naturally be.


What's the problem with the high freight rate of this sample order?

First of all, the total weight of 25 pieces of smaples is less than 6kg. According to the weight formula, the shipping cost should less than 36 dollars. But when then freight agence ask about 198 dollars instand of 36 dollars. The problem is these samples are too light in weight, but too large in volume. Very light shipments for their size might be charged on dimensional weight, rather than actual weight.

The package dimensional of these samples is 60*60*45cm. Given size transfer to weight formula is: weight=length*width*high/5000. Applying with data above, weight=60*60*45/5000=32.4kg  take the upper limit which is 33kg. Therefor, a  60*60*45cm dimensional package is equal with 33kg in this case. And make the total shipping cost 198 dollars.



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