Shipping costs are part of the distribution or sales costs in a company’s cost accounting.
In a functional sense, shipping includes all activities required for the physical distribution of market-ready products. These activities include:
- Picking items to form shipment units based on orders or customers
- Selecting appropriate shipping packaging and performing the packing process
- Scheduling shipments in accordance with promised delivery times
- Defining shipping terms in coordination with sales or customers
- Preparing shipping documents based on delivery conditions
- Handing over the packaged goods to the chosen shipping service provider