How to Calculate Courier Charges: Factors to Consider

Shipping the couriers is an important part of any business, particularly now because it is the age of e-commerce. The courier service industry works in an orderly manner to deliver your packages anywhere in the world. But obviously, nothing comes for free, right? The courier businesses charge their customers a shipping cost. These costs differ with the shipping of each courier. As a customer, it is important that you understand how these shipping charges work and how exactly they are calculated by different courier companies.

In this article, we will have a look at the different factors that influence the courier charges and their calculation.

What are Courier Shipping Charges or Costs?

Shipping costs include the fees that are related to the transportation of items from vendors to the customer’s destinations. These charges involve packaging charges, handling fees, carrier fees or any extra fees from the logistics company. As a customer or especially as a business accurately predicting the courier charges and the transportation costs is important for pricing strategies, budgeting and for profitability.

Calculating Courier Shipping Costs: Factors That Affect Courier Fees

Here are the steps to calculate courier charges in India and the factors that affect the variations of these charges from customer to customer:

  • Distance

Distance is, without a doubt, the most important factor that determines courier charges. The farther away the delivery is, the higher the cost will be. This means that sending a courier 30 kilometres away and sending a courier abroad will not cost the same. The distance and the destination of shipping impact the mode of transport, the expense of fuel, and other costs, including tolls. So, these factors contribute to the overall courier delivery charges.

  • Weight & Size

The weight and size of the courier package are key factors that affect the delivery costs. This is because different carriers or delivery vehicles offer different rates based on the weight and volume of the package. Larger and heavier packages cost more in transportation because they require extra effort.

  • Delivery Method

The type of delivery options chosen by the customers for deliveries also affect the courier costs. There are various types of deliveries that courier service companies offer like the standard delivery, same-day delivery, home or in-store delivery, or relay delivery. These types can affect the courier delivery charges, This means that same-day delivery can cost more than standard delivery because of the difference in speed.

  • Mode of Transportation

The courier rates are also affected by mode of transportation –  whether they are transported by road, air or railway. Air transportation is usually more costlier than road or train transportation.

  • Speed of Delivery & Extra Services

The option of faster delivery and extra services, such as insurance or signature confirmation, raise the courier charges. Choosing the options of slower delivery or fewer services and help in lowering the costs.

  • Customer Duties (for International Couriers)

Customer duties mean the taxes that are charged on parcels that are sent across the international borders, to different countries. They can differ according to the country making it hard for the customers and the businesses of parcel services to predict the exact amount.

FUN FACT: Apart from this, did you know that some parcel delivery companies like Porter also offer their customers a Courier Charges Calculator? Such calculators estimate the shipping rates for couriers sent within or between cities. You are just required to insert into these calculators the shipping options, parcel weight and size, and the destination in order for it to provide the estimated rates.


To conclude, the various courier companies make it easy for you to send packages from one place to another. By knowing what affects courier charges, people can find the best services at the lowest prices. However, when choosing a courier partner, especially for your e-commerce business, it’s important to give priority to quality service over the cheapest option that you see. So, happy shipping!