There are three options for calculating and charging shipping for E-commerce customers:
Free Shipping – A company adds shipping into their calculations for profit margins so the consumer sees no additional charge.
Fixed rate – A fixed rate is charged regardless of order, which works well in many situations but can make smaller items too expensive for many customers.
Calculated per Order – Each order has exact shipping costs calculated in real time. This can make orders cheaper for the customer compared to fixed rate shipping, and gives confidence in the process as customers see exactly what they are paying for. It also allows for flexible shipping options, giving more choice.