Year after year it seems that shipping rates are getting more expensive.  If you feel this way, you’re not alone. The reality is that the costs of providing shipping services are rising.  Shipping companies have to factor in fuel costs, maintenance on delivery vehicles, insurance, wages, tolls, parking tickets, and many other factors when determining the full shipping cost for a delivery.

To help offset these costs, companies will usually base their shipping rates on a variety of factors. Package weight, dimensions, destination, speed of delivery, and custom options like requiring a signature all affect your final shipping quote.

Why does residential shipping cost more?

You’ve probably noticed that most companies will charge more to deliver to a residential address.  There are a few reasons for this.  First off, businesses tend to be clustered closer together and closer to a city center, so it’s easier for the shipping company to group deliveries together.  It’s also easier to coordinate a delivery with a business, as there are usually employees present to accept deliveries during business hours. When delivering to a residence, often no one will be home, and if a signature is required, a redelivery attempt will have to be made.  When averaged over the millions of deliveries made each year, these costs add up and most shipping companies choose to pass this down to the residential customer.

Shipping to rural areas

While it may seem obvious that packages that are large and heavy will cost more to ship than ones that are small and light, your end destination and the shippers’ fleet capacity will also have a marked impact on your final price to ship.

Consider the following example: Shipping a 20” square package that weighs 10 pounds from Houston, TX to Waco, TX, a distance of 183 miles. The best shipping rate from ShipGooder is $11.57 from USPS.  The shipping rate for the same package shipped from Houston to Dallas, a distance of 239 miles is also $11.57.

Shouldn’t it be more expensive to ship to Dallas as it’s 56 miles farther?  Most shipping companies have either more or larger delivery vehicles travelling between major centers such as Houston and Dallas, so despite Waco being physically closer to Houston, the end shipping cost is the same.

The effect that distance has (or doesn’t have) on shipping rates can be more confusing when shipping across state or provincial borders as well.  Consider shipping a larger package (40” x 20” x 20” – 20 lbs) from Vancouver, BC to Kelowna, BC (396 km). The best shipping quote for this delivery is $107.46.  Sending the same package from Vancouver to Calgary, AB a distance of 936 km also delivers a best shipping quote of $107.46, despite being over twice as far away!  This example illustrates that the larger your item, the more your shipping rate will be affected if you are in a rural or remote area.

How ShipGooder helps save you money

ShipGooder helps you to get the best shipping quote, every time you ship an item.  Unlike most shipping websites that require you to register before providing a quote, our system lets you quickly and easily enter your shipment details and get competitive rates from the major shipping providers all in one place.  Furthermore, our system integrates with smaller local providers, who often have the best rates for rural delivery areas.  To stay competitive, many providers will offer bonuses such as special rates or free pickup for ShipGooder orders.

Once you have found your desired rate, you can quickly and easily pay for your shipment, print off shipping labels, and track your shipment right on ShipGooder!

We invite you to try out our shipping rate comparison system, and see for yourself how ShipGooder can help save you time and money for residential and business deliveries.


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