Estimated vs Real Shipping Costs in Odoo

In Odoo, external shipping providers like DHL and FedEx offer different ways to calculate shipping costs on sales orders. This is controlled by the Invoicing Policy​, which is available when the Integration Level​ is set to “Get Rate and Create Shipment.” The policy provides two options:

  • Estimated Cost
  • Real Cost

With Estimated Cost, the shipping price is calculated based on the product’s weight set in the system and is shown to the customer before the order is confirmed. Since this is an estimate, it may be a good idea to add a margin to cover any potential additional costs.

On the other hand, Real Cost calculates the actual shipping cost, but the final price cannot be determined until the product is sent. This means the customer will not know the final shipping cost until the product is shipped. While this ensures the correct cost is invoiced, it can be less convenient for customers since they do not get the price upfront.

Which option to choose depends on your business model. For eCommerce, Estimated Cost is typically the best choice, as it provides the shipping cost before the order is confirmed. For B2B, Real Cost may be more suitable, often with an estimate provided upfront.