I'm wondering how anyone out there determines shipping charges? For instance, I'm planning on using FedEx and USPS and I'll have about 700 products of different box sizes, weights, and values. Since shipping includes not only the product, but the box and packaging, and the value of the product, how the heck do you determine shipping accurately?

I understand there is a custom shipping option, if I wanted to be that accurate would I have to measure and weigh every package, decide what size FedEx box it would be shipped in and maybe add a little more weight to account for the box and any packaging? Wow, that seems like a lot of work. But maybe it's better than losing $ every time I ship something out because it's under estimated? My products aren't terribly expensive so I'm not making a whole lot of $ per item, so losing even small amounts on shipping will add up.

I only have hundreds of products with varying weights, from a few ounces to several pounds. Guesstimate the weight of packaging per item and add to the per piece. I charge a flat USPS charge for items under 8oz and then it bumps to regular pound weight for USPS or Fedex. I then add a little for handling. It's not a perfect system but your shipping has got to pay for itself.

Unless you have something very special for a product. You will proberly find that it is the industry you are dealing with that set the shipping standard.
If you deal with cat toys look at what some of the big pet web sites offer and follow their lead. The reality is that they set the standard and you have to offer something fairly similar. Of cause unless you just have the cutes cat toy in the wholeworld which every cat owner just must have then they may be willing to pay a little more for freight.

When that is said. We sell pretty cheap products as well and have a flap fee shipping policy for the 48 lower states. Hawaii Alaska goes by USPS Priority -cheapest service and we usely e-mail the customer and offer them to split the cost explaning that the alternative is by boat and it will take weeks. The customer then usely return and are real happy with the service.

Of cause with a flat fee service -you loose some and you win some and at the moment we get a lot of orders from Idaho which cost a lot of Dollars in shipping and we get absolutly no orders locally but what can you do that is the name of the game and the big box retailers and web sites out there has already set the level for us.