No two time zones around the globe in countries far apart from each other can be the same. Hence, when fulfilling an order, it is critical to ensure the shipping zone of the place from where the order is being shipped to the place where it will be delivered. Having a basic understanding of this helps companies maintain efficient, reliable, and cost-effective shipping, all while keeping their customers satisfied.
If you are someone who recently entered this line of force and want to gain a basic understanding of what shipping zones are, how they work, and the impact they can leave on order fulfillment, then you have landed on the right page. Hop on below to read a detailed guide on everything that you should know.
What Are Shipping Zones?
The shipping zones are geographical areas that are used by carriers to calculate the cost of shipping required to be paid for delivering the products from the warehouse location to the region where the customer resides. The shipping zones vary on the basis of carrier, country, and region and can help estimate the delivery time as well.
These zones are divided by the carriers into geographic shipping regions and cover a wide range of destinations. The shipping regions are usually labeled by the alphanumeric scale and typically range from one postal code zone (e.g., Zone 1) and goes all the way to over 50 zones.
Shipping Zones and Carrier Pricing
As mentioned above, the shipping zones can vary from carrier to carrier. For example, USPS works on the basis of a unique shipping zone system and uses a regional rate zone map to calculate the overall cost and time for delivery. On the other hand, carriers like UPS usually make use of transit time to calculate shipping zones and delivery times.
Hence, any business needs to understand its shipping zone fully before selecting a carrier. The carrier pricing for the shipping zones also changes from time to time, and hence, businesses need to stay up to date with the recent pricing. The table below will help you understand on what basis are the shipping zones divided by renowned carriers like UPS, USPS, and FedEx:
Shipping Zone Mile Radius (from origin)
- Zone 1 (local) 1-50 mile radius from the shipping region
- Zone 2 51-150 mile radius
- Zone 3 151-300 mile radius
- Zone 4 301-600 mile radius
- Zone 5 601-1000 mile radius
- Zone 6 1001-1400 mile radius
- Zone 7 1401-1800 mile radius
- Zone 8 1801+ mile radius
- Zone 9 US Territories
How to Calculate Shipping Zones?
Now that you have a basic understanding of what shipping zones are and how they are divided on the basis of location, the next step would be to understand how to calculate the cost of shipping zones. The shipping zones for e-commerce businesses are based on two major factors: the zone number and the parcel’s weight. Here is how each of these two factors determines the overall shipping zone cost:
⦁ Zone Number
The shipping services make use of the zone number to calculate rates for parcel shipment. So, the greater the zone would be extended in terms of miles from the shipping region, the greater its cost of shipping would be.
However, this is not always the case, and there might be times when there would be exceptions. This means some carriers might use a flat rate and charge the same shipment price regardless of the destination.
For example, USPS operates similarly and has a breakdown of which of its services are zoned (Priority Mail, Priority Mail Express, USPS Retail Ground, etc.) compared to those that have a flat shipping rate (USPS Marketing Mail, Library Mail, First-Class Mail, and Media Mail).
⦁ Order Weight
The overall weight and dimensions of the order also play a major factor in determining its shipping zone and cost. So, while even lightweight boxes would have their cost determined based on the distance they are being shipped off to, the overall weight of the package would add some to the price, too. This means the heavier the package, the more the price would increase.
How does it work? Well, for example; if you are shipping a 1-pound package from Zone 1 to Zone 10 then a price of hike would only be of about $3.90. However, if a 3-pound package is shipped to the same zone, then the cost would dramatically increase to $14.65.
How Shipping Zones Impact Delivery?
There is no denying that shipping zones do impact the delivery and duration it takes for the parcel to reach. This is the same case of how one commutes. If a place you have to go is far away from where you reside, it is natural that it would take you more time to get there compared to a place that is closer to your location.
Similarly, if a package is sent to Zone 1 or Zone 2 from the shipping location, it would arrive in less time to the customer compared to if it was shipped to a higher zone. However, despite the distance, companies need to reduce the transit time because slow shipping often can be a reason for you to lose customers.
Using Shipping Zones to Reduce Fulfillment Costs
Shipping zones can be used to reduce fulfillment costs. How so? Well, once the businesses have identified their shipping zones, they can use the following strategies to cut down on the price:
⦁ Multiple Fulfillment Centers
When businesses open multiple fulfillment centers in different regions around the globe, it aids in faster delivery and reduced cost. Products can be stored in these fulfillment centers apart from just the warehouse. Whenever an order for any product from the nearest region is made, the product can be shipped off from the fulfillment center directly.
⦁ Flat Rates for Shipping
Flat shipping rates are also a great way to reduce fulfillment costs and attract more customers. Why is that? Well, with flat shipping rates, the delivery costs remain the same no matter in which zone the customer’s location is. This makes the delivery fee reliable and predictable, encouraging more customers to purchase from you.
⦁ Group Orders Based on Shipping Zone
Another great way to reduce fulfillment costs is to ship multiple orders from the same location together. For example, sending out ten or more parcels to the same zone would be more beneficial than sending out the same parcels individually to different shipping zones. Hence, choosing your shipping zones and when to ship out where smartly is very important.
⦁ Third-Party Logistics Partners
Choosing 3PL services for your shipment is a great cost-saving option. These shipment providers are experts in what they do and have a clear understanding of all carrier rate tables and zone and regional shipping regulations. Hence, they can help you make and choose the best decisions in shipment and provide more cost-effective options that ultimately benefit your business.
How to Offer Free Shipping?
Offering free shipping is a loss to companies, especially when they have to deliver the products to a higher zone. However, how do many companies still do this? The answer is very simple. Companies use a set of strategies that can help ensure that the free shipping offer won’t hurt their profit margin. Here is what they typically do:
⦁ They add an average shipping cost to the existing price of the product.
⦁ They reduce the number of zones they ship to, and hence, the free shipment doesn’t cause any losses.
⦁ They require customers to order products worth a certain amount of money and hence increase their average order value. This causes them to regain their profit, which they might lose on the free shipping.
Optimize Shipping Zones with NextSmartShip
Considering we talked about 3PL services being exceptional when it comes to helping you optimize shipping costs, we are sure you’d also want to look into a third-party shipping service for your business. If that is the case, then let us help you out.
NextSmartShip is one of the best 3PL shipping and packing businesses in operations. With its main warehouse hub in China and over ten fulfillment centers distributed in all important locations around the globe, this 3PL service is bound to deliver your products in no time and help you achieve some happy customers. Not only this, but its impeccable service also enables you to reach up to 40% off on all the shipments you make, ultimately saving you money and profiting your business. How cool is that, right?
Conclusion
If you are someone who was searching the web to learn about shipping zones or freight zones, then we hope this article was helpful for you. While we did try to cover everything you should know about shipping zones, one thing which you should know is to optimize your shipping cost based on its zone. To ensure this, there is no better service than NextSmartShip. So, make sure to check it out today for sure.
