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Ecommerce Shipping and Handling

This page provides further details of the OzeWebHost secure ecommerce system shipping categories.

Recapping, there are three methods of calculating shipping costs:

• Default - there is no cost on shipping.
• Simple - there is a single selection list to choose from. Each entry in the list is a shipping category and results in a different formula to be applied to the product weights.
• Complex - The customer selects their country and then, if required, their state. They can then possibly choose from a list of delivery services (surface, airmail, etc).
  The merchant or OzeWebHost staff set up shipping categories (with formula to be applied to product weights) and assign countries or states to each category. The same set of countries/states may be assigned to more than one category, each category being for a different delivery service.

Each shipping category defines a base value and a rate per Kg. A component for a proportion of the total cost of the items can also be added. So if the total weight of an order is 2Kg, the base is $2.35 and the rate per Kg $3.40, and insurance is 5% of the item cost $55.00, then the shipping cost would be
        2.35 + 2 x 3.4 + 0.05 x 55= $11.90
Any product specified as packed and posted separately would have its shipping calculated separately.

The merchant can edit their shipping categories by clicking on a link after going to https://www.townseek.com.au/ecoorders.html, and logging on.

Simple shipping category

Requires the following data:

Shipping category name (this appears in the selection list):
    Australia - Airmail
Base cost of shipping and handling:
    2.35
Cost per Kg extra to base cost:
    3.4
Postage portion of product cost (eg 0.05 for 5% of product cost):
    0
Require a Tax Invoice rather than a receipt ?:
    Yes
Any note to be printed on the invoice/receipt:
    (All prices include GST)
Remove GST (set to 0.9091 removes GST from products that attract GST; set to 1 keeps GST):
    1.0
Associated state/province (leave blank if not associated with a single state):

Associated country (leave blank if not associated with a single country):
    Australia

Complex shipping category

When OzeWebHost steff setup a merchant account they select a set of countries and states relevant to the merchant. All merchants will have a similar country list. If the merchant is in Australia, the states will be the Australian states. If the merchant is in USA the states will be the states of USA. Differentiating between the shipping costs of states is only relevant for the states in the merchant's country.

The Complex Category requires the following data:

Shipping category name (a name to identify this category for editting purposes):
    Nearby international - Airmail
Type of service/grade (airmail, express, leave blank if only one grade for group of countries/states):
    Airmail
Base cost of shipping and handling:
    3.55
Cost per Kg extra to base cost:
    5.6
Postage portion of product cost (eg 0.05 for 5% of product cost):
    0
Require a Tax Invoice rather than a receipt ?:
    No
Any note to be printed on the invoice/receipt:

Remove GST (set to 0.9091 removes GST from products that attract GST; set to 1 keeps GST):
    0.9091
Selection of all countries to be included in this category:
    New Zealand,Indonesia,Japan,Phillipines
Selection of all states to be included in this category (If the states are to be selected don't select their country as well):

How to determine the base and rate from discrete postal weight ranges

Given the following table for a country zone and a particular service:

Up to 250g	$6.00
Over 250g up to 500g	$10.00
Over 500g up to 750g	$14.00
Over 750g up to 1000g	$18.00
Over 1000g up to 1250g	$22.00
Over 1250g up to 1500g	$26.00
Over 1500g up to 1750g	$30.00
Over 1750g up to 2000g	$34.00

For each 250g the cost increases $4. Therefore the cost per Kg is $16 (4x250g).
The cost for 0Kg is $6, therefore the base is $6.
Let's verify it. Say a product weights 1.010Kg. Then the cost is 6 + 1.010 x 16 = $22.16. Looking up the table, that is close to correct. Because a step function in the table is being converted to a linear function, this only approximates the costs. The merchant can get more accurate results by varying the product weights slightly to the bottoms of the weight ranges. For example, the above would give the correct answer if the weight were specified as 1 Kg.

The merchant may wish to add a further amount to the base to cover handling costs.

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Park Road, Nowra, NSW 2541 Australia
Telephone: +61 (0)2 4423 0644
Email: info@ozewebhost.com