You may not think it, but shipping rates are closely tied to your store sales. Of the 70% of shoppers who abandon carts instead of buying, nearly 40% said the reason was that shipping and other extra costs were too expensive. Where is the sweet spot for shipping rates on Shopify? The answer can be the difference between winning a customer and losing the sale.
Are Shopify Shipping Rates Good?
Shopify offers curated shipping options through Shopify Shipping, which is integrated into every Shopify plan. You can also freely connect popular third-party couriers, from FedEx to ShipStation. Generally speaking, Shopify Shipping’s rates are excellent.
One reason is that Shopify negotiates discounted rates with carriers like UPS, DHL, and the USPS. Some customers save 30% on average, and Shopify claims you can save as much as 88%.
Plus, you get to use Shopify’s built-in tools to fulfill orders efficiently:
- Shopify Shipping provides $200 in shipping insurance for damaged, stolen, or lost packages.
- Real-time shipping rates are calculated automatically at checkout.
- Full package-tracking is included for customers, too.
This is a win-win situation compared to calculating everything by hand.
That said, several factors affect how much you pay for shipping through Shopify partners, such as where your customers live. If you mainly sell locally, it may be cheaper to find a regional delivery service you trust.
Third-Party Carriers on Shopify
Smaller third-party carriers can save you money, especially if you mainly deliver to local or regional customers. And you can negotiate volume-based discounts to save even more.
Before you go this route, do research online. Order fulfillment is a huge part of the customer experience, and damaged packages or lost shipments can cost you even if it’s not technically your fault.
Check reviews from other small business owners. Does the carrier have a good reputation for reliability? How is the support process for shipping issues? Will you have to manually enter orders into another platform?
Shipping Labels
How do you pay for shipping on Shopify? If you’re using Shopify Shipping, you purchase and print shipping labels from your dashboard. Sender, recipient, and order information are automatically entered, and the price is charged to your Shopify account.
But don’t shoppers pay for shipping? Basically, Shopify Shipping charges you, and then you bill your customer. This is why many Shopify stores charge a “shipping and handling fee” in the case of returns.
How Does Shopify Calculate Shipping Rates?
Many factors determine how much you and your customers pay for shipping rates.
Carrier
FedEx, UPS, DHL, and other carriers all charge different rates for shipping in Shopify. Postal carriers like USPS and Canada Post tend to have lower rates.
Shipping Distance
The further a package has to travel, the higher it costs to ship. From San Francisco, CA (94112) to Seattle, WA (98101), FedEx charges about $65 for small boxes. The same package going to Miami Beach, FL (33109) would cost over $135.
One exception is postal carriers, who often charge the same regardless of ZIP code but take longer to ship the further you go. This is one reason larger e-commerce businesses have several warehouse locations around the country.
Weight
Nearly all carriers charge you for shipping based on the package weight. If you handle your own packaging and shipping, it’s smart to weigh all of your products to get an accurate feel for carrier costs.
In case you’re wondering, t-shirts usually weigh 4 to 6 ounces, meaning that three or four shirts weigh about one pound. Hoodies generally weigh one to two pounds each, depending on the size.
Men’s jeans are also a pound a piece. A single pair of shoes weighs between one and four pounds.
Dimensions
What if you ship artwork, furniture, lamps, or other large items? Many carriers charge additional fees for this type of package. For bulkier, heavier items, you may need to work with a freight company, such as XPO Logistics or FedEx Freight.
Delivery Speed
The faster your customers need their products, the higher the shipping rate is. This is because carriers need to send packages via air instead of over land.
It’s still good to give shoppers a variety of fulfillment options, though. Let them choose next-day rates if they want them. Just make sure you have real-time carrier rates instead of flat fees for rush deliveries to avoid shooting yourself in the foot.
International Markets
Shopify shipping rates for overseas fulfillment are much higher than domestic deliveries, especially if you want packages to arrive in days instead of weeks. DHL charges about $250 to ship a medium box from Miami to Paris.
Even sending packages from the United States to Canada can get pricey because of duties and carrier import fees. Crossing borders is always more complex, so it costs more. To get around this, many Shopify stores either choose dropshipping or rely on warehouses in their biggest markets.
Fees and Surcharges
Always look at the fine print before partnering with third-party carriers. Some charge extra fees for fuel, “administrative costs” (whatever that means), or residential delivery.
What Shopify Shipping Rates Are Available for Your Store?
As a Shopify store owner, you can approach shipping rates practically any way you want.
Free Shipping
Most of the time on Shopify, free shipping is either baked into the item’s cost or absorbed by the business (or a little of both). At checkout, your customer doesn’t pay a thing.
Conditional Free Shipping
You can make sure free shipping doesn’t hurt your profit margins by setting order minimums. The minimum threshold can be $35, $50, $100, or more.
General Flat Rate
Flat rate means a set price for every item. This option works well if your products are mostly the same weight and size. Going with flat-rate shipping on Shopify can simplify things for you, but some customers don’t like it.
Product-Specific Flat Rate
You can also set up a few categories for flat rate shipping. One price could be for small boxes and another for large items.
Weight-Based Flat Rates
It’s more accurate to set flat rates based on product weight. Shoes cost more to ship than t-shirts.
Real-Time Carrier Rates
Shopify Shipping integrates real-time pricing, letting buyers see exactly what carriers charge. This is ideal when customers are footing the bill.
How Do You Set Shipping Rates in Shopify?
If you maintain your own store inventory and ship everything yourself, it’s going to take time to set up all of your shipping rates on Shopify. The good news is that this is time well invested.
Once you set things up, Shopify calculates shipping rates automatically. Customers see the correct rates for every product, category, and order, whether they buy one item or 50.
How To Set General Shipping Rates
You have to learn how to set shipping rates before you can sell products. It’s also good to review the prices on your live Shopify store periodically. Here’s what to do:
1. Go to “Shipping and delivery” in your Shopify admin: You can control all shipping rates and configurations from your dashboard. Under “Shipping origins,” set where you’re shipping from, like the location of your warehouse. If you have more than one distribution center, set multiple origins.
2. Edit the general shipping profile: In the “General shipping rates” heading, you can set a storewide shipping profile. This will be the default option for products on your store. You can also create custom profiles for specific items, which we’ll cover in a moment.
3. Select your shipping zones: Under “Shipping zones,” click on the “Add shipping zones” button. In the box that opens, select any zones where you ship goods. Only customers in those zones will see shipping options at checkout.
4. Add shipping rates to the Shopify store profile: Click on “Add rate.” Then, under “Rate type,” choose between flat rate or carrier-calculated pricing. For each delivery timeframe, set the price you charge per item (for example, $9.99 or $19.99).
5. Add conditional shipping rates: In the same window, you can also click on “Add conditional pricing” to set rules for your general shipping rates. Set your price and delivery speed as before, and then include conditions based on item weight or order price. For example, you may offer free shipping ($0 in the “Price” field) on orders of $100 or more.
6. Continue the process for every zone: Many Shopify stores charge different flat rate fees for groups of zones. For example, if your warehouse is located in Arizona, you might charge one rate to ship to Texas and another for New York.
This system allows for a lot of flexibility with flat rate, carrier-calculated, and free shipping for Shopify stores. By setting minimum and maximum ranges, you can easily create rate tiers.
How To Manage Custom Shipping Profiles
In addition to setting automated rules for general shipping rates, you can build custom shipping profiles for specific products or collections. This is a good idea if some of your inventory is bulky, fragile, or rare.
Create as many profiles as you need to accurately estimate shipping rates. Here are a few examples:
- Fragile goods
- Extra-large items
- Free shipping
- Small products
- Extra insurance
Set up general or conditional pricing like before, and you’re good to go.
How To Set International Shipping Rates on Shopify
The physical process of configuring international shipping on your Shopify store is largely the same as with other regions, but you need to do your homework when it comes to fees and duties.
- From your Shopify dashboard, click on “Settings” > “Shipping and Delivery.”
- Select a shipping rate profile to edit.
- Go to the location you want to ship from, and then click “Create zone.”
- Name the zone, and select countries from the list (e.g, Canada, Mexico, India, or Brazil)
- After clicking “Done,” edit shipping rates for the zone, and remember to save when you’re done.
- If you haven’t already set up a sales market that matches the shipping zone, you can do that from the “Markets” tab in your dashboard.
A growing number of countries are charging duty on international orders. Every country has its own rules, so you need to investigate which carriers are willing to ship overseas, what fees they charge, and how to print labels that meet duty requirements.
Shopify Shipping integrates with Canada Post, Australia Post, Royal Mail (UK), SEUR (Spain), Chronopost (France), UPS, DHL Express, and other carriers for international shipping, or you can select third-party fulfillment options.
What Shipping Rates Should You Offer on Your Shopify Store?
Deciding how much to charge for shipping is one of the most important decisions you have to make.
Free Shipping Incentives
Conditional free shipping can be a powerful motivator, just like product bundling discounts. Customers may be happy buying several items instead of one if it means not worrying about shipping rates or fees.
Factors To Consider When Setting Up Your Shipping Policy
The best shipping rates for your Shopify store depend on several factors:
- Profit Margins: Can you realistically offer free shipping and still make a profit?
- Customer Expectations: Do most of your customers expect free shipping?
- Competitor Policies: Are your competitors taking business from you because of their free shipping policy?
- Total Shipping Costs: How much does shipping cost your business every month? Do you have enough working capital to realistically cover it yourself?
For custom items with large profit margins, it may be worth eating the cost of free shipping on Shopify to attract more clients and boost your sales.
Dropshipping and Print-on-Demand Options
Does it feel like coordinating inventory, packaging, and shipping isn’t for you? That’s a more common reaction than you may think.
Both print-on-demand (product customization) and dropshipping models let you shift the responsibility for inventory management and order fulfillment to a third-party firm. Your overall profits are lower, but so are your stress levels and time commitments.
Discover Small Business-Friendly Solutions for Order Fulfillment and Shipping Rates on Shopify
At StayTuned Digital, we’re proud to support your business no matter what type of shipping options you need. We can help you find solutions for Shopify shipping rates that improve your customers’ experience.
But StayTuned’s expertise goes far beyond shipping. We offer tools that help you do everything from reducing returns and simplifying discounts to expanding revenue streams. Browse the best Shopify apps to help your store gain the flexibility needed to grow faster while keeping operations simple.