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How are Third-Party Shipping rates (UPS, FedEx, USPS) calculated?

To explain how UPS, USPS and FedEx rates are calculated in NRO.

Shipping rates are drawn directly from UPS, FedEx, and USPS web sites, taking various factors into consideration as described below.

FedEx rates must draw from a specific FedEx account that you specify.
UPS rates are general, public rates drawn from the UPS website, or you can enter in your UPS contract information to use your contractual rates.
USPS rates must draw from a specific USPS account that you specify.

Final rates from those web sites are calculated along with these factors:
  1. Merchant's ZIP code (origin)
  2. Shipping ZIP code (destination)
  3. Weight of each item multiplied by quantities per order
  4. Shipping method chosen by the shopper (Ground, 2-Day, Express)
  5. If shopper enters a Company name, commercial rates are used
  6. If no Company name, residential rates are used

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