Shopify Shipping Explained: Costs, Rates, and Delivery Methods

Managing shipping can be complex and time-consuming, but Shopify Shipping can help you simplify the process. Shopify Shipping streamlines order fulfillment, making it easier to manage everything in one place.

This allows you to focus on other business areas while ensuring fast, flexible shipping that meets customer expectations. In this article, Nextsky will explore how Shopify Shipping can enhance your shipping efficiency and customer satisfaction.

1. What is Shopify Shipping?

Shopify Shipping is a built-in shipping solution provided by Shopify to streamline order fulfillment for merchants. This service allows sellers to integrate their Shopify store with major carriers, access discounted shipping rates, and manage shipping processes efficiently—all from the Shopify admin panel.

Key Features of Shopify Shipping:

• Carrier-Calculated Rates at Checkout: Shopify Shipping enables real-time shipping rate calculations from carriers like USPS, UPS, DHL Express, and Canada Post, giving customers accurate shipping costs.
• Discounted Shipping Labels: Merchants can purchase and print shipping labels at reduced rates—Shopify offers up to 50% discounts compared to standard carrier prices.
• Seamless Order Management: Sellers can track shipments, print labels, and manage fulfillment directly within Shopify, eliminating the need for third-party integrations.

Note: Shopify Shipping is only available for eligible fulfillment locations, which will be covered in later sections.

This service is designed to save time, reduce shipping costs, and provide a smoother experience for both merchants and customers.

Read more:

• How To Change Shipping From Address On Shopify
• How to Remove "Shipping Calculated at Checkout" in Shopify

2. Pros and Cons of Shopify Shipping

While Shopify Shipping is a great built-in solution for many merchants, businesses with complex shipping needs may need to explore third-party fulfillment services to scale effectively.

=>> See also: How to Fulfill Orders on Shopify - A Step-by-Step Guide for Beginners

3. How to Set Up Shipping on Shopify

Step 1: Visit your Shopify dashboard

Because Shopify Shipping is fully integrated with your Shopify store, you can access it directly from your dashboard.

First, you have to log in to your Shopify account and then go to your Shipping and Delivery settings by Setting > Shipping and delivery

From here, you can set up multiple shipping options, Shopify processing times, Shopify free shipping, and other necessary settings.

Step 2: Set up your local delivery & pickup options

Set up your local delivery options

To activate local delivery for a specific location on Shopify:

• In the Local Delivery section, select the location you want to enable local delivery.
• Click "Set up" > “Shop location”

• You have 2 options to set up local delivery: Local status and Manage local deliveries using the app
• In the Location status section, check the "This location offers local delivery" box.
• In the Delivery Area section, you can use Delivery Raidus or Zip Codes to set your range of delivery.

• Fill in all information then press “Save”

Set up your pickup option

• To activate local pickup in your Shopify store:
• In the Local Pickup section, choose the location you want to enable. If you have multiple locations, click "Show more" to view all options.
• Ensure you have set up the location beforehand to select it.
• Check the box for "This location offers local pickup."

• Adjust the settings in the Information at the checkout section according to your preferences.
• Optionally, provide pickup instructions for customers under the "Order ready for pickup notification" section.
• Finally, press “Save”.

Step 3: Set up shipping zones

To set up shipping zones in Shopify:

• Under the Shipping section,  select General shipping rates
• In the “Shipping origins” section, Click "Create zone" next to the group of locations where you want to add a shipping zone.

• Enter a name for the shipping zone and select the countries and regions you want to include.
• Click "Done" and add any desired rates for the zone before saving.
• If adding a shipping zone for a new country or region, ensure you've added a market with those countries or regions first.

Step 4: Set up shipping rates

To set up your shipping rates in Shopify, after creating a shipping zone, click the "Add rate" button below the zone you created. You'll have two options to either set a flat rate or use the rate set by carriers.

If you choose to Use flat rate:

• Determine a reasonable flat rate by researching shipping charges.
• Finalize the rate and input it under the "Price"
• Optionally, set criteria for shipping rates by clicking on the "Add conditions" tab. You can choose conditions based on item weight or order price.

If you opt to use a carrier or app to calculate rates:

• Enable specific shipping services you want to offer customers. Limit options to avoid confusion.
• Provide 2-3 delivery options, such as affordable, mid-range, and expedited, for customer convenience.

Scroll down to the bottom to find the section "Handling fee" section. This fee accounts for your packaging and handling costs.

It is added on top of the carrier's shipping charge and covers shipping activities so consider the impact on conversion rates before adding this fee.

You should review your shipping settings thoroughly, especially if default rates are configured for eligible fulfillment locations. Make any necessary changes to carriers and rates to ensure accuracy. Finally, click "Done" to complete.

Step 5: Set up custom shipping profiles

To set up custom shipping rates in Shopify:

• In the Custom Shipping Rates section, click "Create new profile."
• Enter a name for the profile.
• Under the Products section, click "Add products" and select the products to include in the shipping profile.
• Review and make any necessary changes to your shipping origins in the Shipping Origins section.
• In the Shipping Zones section, click "Create zone." Choose countries or regions included in the zone and click "Done."
• Add shipping rates for the zone by clicking "Add rate," specifying the rate details, and clicking "Done."
• Once all zones and rates are set up, click "Save."

Step 6: Print shipping labels

Before purchasing shipping labels through Shopify Shipping, ensure you have a printer set up for printing. You can either use a desktop printer or a shipping label printer, depending on your preference.

Shopify recommends using a Shopify-supported label printer for optimal results. Test your printer by printing a test shipping label before proceeding with actual labels.

4. Key Notes on Shopify Shipping

Shopify Shipping Carriers

Your business must have an eligible fulfillment location if you want to use Shopify Shipping. And for some carriers, your store needs to be in the same country as the approved fulfillment location.

Understand the policies and requirements of each carrier you use to avoid delays or fees. Show the estimated shipping time at checkout, but remember to include your handling time.

Shopify Shipping Prices

Discounts may be offered based on your Shopify plan and orders. You can calculate rates by setting origin and destination, package size, and weight in your Shopify admin.

Shopify Shipping Insurance

To qualify for shipping insurance, you must ship from the United States, purchase labels from Shopify Shipping, and comply with the terms of service. Eligible labels can receive up to $200 in free insurance if Shopify Payments is enabled and you're on an Advanced Shopify or Plus plan.

Cost-saving tips:

• Reduce package weight
• Offer delivery or pickup services
• Use Shopify Shipping to get discounts
• Consider upgrading your auto insurance plan.

These strategies help minimize shipping costs while maximizing efficiency in your Shopify store.

5. When should you use a third-party shipping app?

If Shopify Shipping doesn’t fit your needs, third-party apps on the Shopify App Store offer advanced features like label printing, real-time rates, tracking, and insurance. Consider them when:

• Custom Shipping & Rates – Ideal for stores needing dynamic pricing based on weight, distance, or order value.
• Multi-Carrier Comparison – Helps find the best rates by comparing multiple shipping providers.
• International Shipping – Supports customs documentation, duty calculations, and global carriers.
• Workflow Automation – Streamlines fulfillment and integrates with third-party logistics (3PL).

Using the right app can cut costs, boost efficiency, and enhance your shipping process.

6. Best Shopify Shipping Apps for Your Online Store

The shipping category of the Shopify App Store has countless third-party options to help with everything from saving on shipping rates to automating the shipping process. Here are some of the top Shopify shipping apps.

ShipZip

ShipZip is a flexible Shopify shipping app that integrates with multiple carriers, offering customizable rules, real-time rates, and order tracking with customer notifications.

Ship Rate & Track

The Ship Rate & Track app links your Shopify store to FedEx, offering real-time rates, label printing, and streamlined order fulfillment. With automatic updates and support for FedEx Hold at Location, it's a comprehensive solution for Shopify sellers.

Parcel Panel Order Tracking

Parcel Panel Order Tracking improve customer satisfaction and boost sales with branded tracking. Track orders in real-time, automate shipping notifications and customize tracking pages. Drive sales with upselling and leverage powerful analytics. Get 24/7 support.

Shippo

Shippo Offers discounted shipping rates, multi-carrier support, and seamless integration with Shopify. Simplifies label printing, order tracking, and international shipping.

Easyship

Easyship offers access to 250+ shipping solutions, real-time checkout rates, and automated customs paperwork, making it ideal for businesses looking to simplify shipping and expand internationally.

For more helpful Shopify tutorial, check out:

• How Does Shopify Pay You? Understanding the Payment Process
• How to Offer Free Shipping on Shopify And Still Make Profit