When a seller uses "zone pricing," all customers who are in the same zone are charged the same freight charge-even if the actual shipping cost varies.

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When a seller uses zone pricing, they divide the shipping destinations into zones based on distance from the origin or other factors such as population density. Customers within the same zone are charged the same freight charge regardless of the actual shipping cost. This allows the seller to simplify their shipping pricing structure and may result in some customers paying a higher than necessary shipping fee, while others pay less than the actual cost.

When a Seller Uses "Zone Pricing," All Customers Who Are