Understanding Shopify Shipping: Costs, Rates, and Delivery Methods (2024)

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 service provided directly by Shopify to help sellers manage and fulfill orders efficiently. It includes tools such as order tracking, purchasing and printing shipping labels directly within the Shopify admin, and accessing discounted shipping rates.

Shopify Shipping integrates with major carriers like USPS, UPS, DHL Express, and Canada Post, enabling merchants to offer calculated shipping rates to customers at checkout. This service aims to simplify the shipping process and save costs, with discounts of up to 50% from these carriers.

2. How Does Shopify Shipping Work

Shopify Shipping simplifies shipping by integrating tools directly into the platform. You can set shipping options and rates based on factors like weight and location, purchase and print shipping labels within the Shopify admin, access discounted rates from carriers, show real-time shipping rates to customers during checkout, and fulfill orders seamlessly. This streamlines order fulfillment enhances the shopping experience, and simplifies logistics for sellers.

=>> Find out more: What is Shopify? How does Shopify work?

3. Pros and Cons of Shopify Shipping

Pros of Shopify Shipping:

• Free Trial: Shopify offers a 3-day free trial to explore the platform, with packages starting at USD 1 for the first month.
• Integration: Seamlessly integrates with Shopify stores for a streamlined shipping experience.
• Simplified Processes: Easy-to-use tools for setting up shipping options, purchasing labels, and managing orders.
• Discounted Rates: Offers discounted shipping rates from carriers like USPS, UPS, DHL Express, Canada Post, and Sendle.
• Real-time Pricing: Customers see calculated shipping rates during checkout, improving transparency.
• Order Tracking: Automatically updates order status and tracking information.

Cons of Shopify Shipping:

• Limited Carrier Options: Choices may be restricted compared to independent shipping solutions.
• Platform Dependency: Potential limitations if specific features or integrations are not supported.
• Additional Costs: Despite discounts, sellers may still face shipping fees, especially for international or express shipments.
• Geographic Restrictions: Primarily applies to orders shipped from the US or Canada, limiting flexibility for global sellers.
• Bulk Label Printing Limitation: Only allows printing of up to 20 labels in bulk at one time.

4. Key Features of Shopify Shipping

Shopify Shipping has a few outstanding features that help manage the shipping process effectively:

• Manage bulk orders: Shopify allows merchants to prepare and print labels for multiple orders at once, saving time and increasing delivery accuracy.
• Centralized database: Customer information and addresses are automatically tracked, helping to avoid duplicating information and saving time when processing orders.
• Shipping management: Merchants can display accurate shipping prices from shipping providers or services, maintaining control over payment and shipping options for customers.
• Carrier integration: Shopify Shipping integrates with major carriers like UPS, USPS, FedEx, and DHL, making it convenient to compare prices, print labels, and track shipments.
• Omnichannel fulfillment: Merchants can fulfill orders from a variety of sales channels, including online stores, direct sales, and orders from third-party marketplaces.
• Shipping Insurance: Shipping insurance protects orders against loss, theft, and damage, with the ability to purchase up to $5,000 in coverage.
• Bulk label printing: Shopify allows bulk printing of shipping labels, which saves time and effort when processing large numbers of orders.
• Supports international shipping: Shopify Shipping supports international shipping, expanding access to customers around the world.
• Seamless integration: Shopify Shipping integrates seamlessly with other Shopify features and applications, creating a unified foundation for managing ecommerce businesses.

5. Cost of Shopify Shipping

Shopify Shipping is included at no extra charge for merchants using Shopify's subscription plans. Beginners can try it free for 3 days and pay only $1 for the first month, accessing all features. However, costs for label printing or additional shipping services may apply, included in the monthly subscription fee. It's important to be aware of these costs and prepare accordingly for payment on the Shopify billing date.

6. 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.

• 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.

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

• 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.

7. 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.

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

If Shopify Shipping isn't suitable, you can explore alternatives on the Shopify app store. These apps provide essential features like label printing, rate calculation, package tracking, and insurance. These are things you should consider:

• Consider them for specialized shipping rules, complex rate calculations based on weight or distance, and integration with additional carriers not supported by Shopify.
• You should really opt for apps that offer this feature to compare shipping costs across multiple carriers for better pricing options.
• Look for apps that specialize in customs management, duty calculations, and international carrier integrations for comprehensive international shipping solutions.
• Third-party apps provide flexibility to tailor workflows and meet specific fulfillment requirements effectively.

9. 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

Provides access to over 250 shipping solutions, real-time rates at checkout, and automated customs paperwork. Ideal for streamlining shipping processes and expanding globally.