Knowledge BaseGetting StartedHow ShipGenius Rates Work

How ShipGenius Rates Work

ShipGenius rates are lower than retail because we own our carrier connections directly. Here is how rates are calculated and where the savings are biggest.

How ShipGenius rates work

ShipGenius rates are lower than retail because we own our carrier connections directly. We are not routing labels through Shippo, EasyPost, or any other third-party API. We negotiated these rates ourselves and pass the savings to you.

Where the rates come from

ShipGenius has direct contractual relationships with UPS and USPS. On Core, you use our negotiated rates automatically with no setup required. On Plus and above, you can also connect your own carrier accounts and use your personal negotiated rates alongside ours.

What affects your rate

  • Weight. Billed weight is the greater of actual weight and dimensional weight.
  • Dimensions. Length, width, and height determine dimensional weight. For large, light packages, dimensional weight is often the billed weight.
  • Origin and destination ZIP codes. Carriers divide the US into zones. Shipping across more zones costs more.
  • Service level. Ground, Priority, Express, and overnight services have different price points and delivery commitments.
  • Declared value. Adding insurance increases the label cost but protects you if the shipment is lost or damaged.

Dimensional weight

Carriers charge based on the space a package takes up, not just its physical weight. Dimensional weight is calculated as length × width × height, divided by 139, where dimensions are in inches. If your package is large but light, your billed weight will be the dimensional weight. Using a smaller or tighter-packed box can meaningfully reduce your cost.

Where ShipGenius rates are most competitive

Our rates beat the alternatives most clearly on packages over 8 lbs. Below 8 lbs, we are competitive but the gap is narrower. If you regularly ship heavy or bulky items - apparel, supplements, equipment, anything with real dimensional weight -- the savings tend to be significant.

Surcharges

Carriers apply surcharges in certain scenarios. These are passed through at cost and are not a ShipGenius markup:

  • Residential delivery surcharge - applies to most home address deliveries
  • Fuel surcharge - a carrier-set percentage added to most shipments
  • Oversized / additional handling - applies to packages exceeding certain dimension or weight thresholds
  • Remote area surcharge - applies to certain rural ZIP codes

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