How to Calculate Shopify Shipping Rates?

Shopify shipping rates are additional charges you put on customers to cover the cost of delivering the product they order. These rates vary depending on product weight, order value, shipping zones, and destination. Shipping fees are calculated based on specific rules you set in your store's shipping settings. You can offer one or more shipping rates to customers during checkout.

Shopify allows you to choose from several shipping rate options like flat rates, carrier-calculated shipping, free shipping, and custom rates. By correctly setting shipping rates, customers can pay a reasonable price for delivery while you cover your shipping costs and maintain profitability. Shipping rates can directly impact your customers’ buying decisions, so it's essential to set them.

Shopify shipping cost depends on your store subscription plan and the order you are shipping. To calculate the shipping rate, follow these steps

1. Log in to the Shopify store with your email and password.

2. Navigate to Settings > Shipping & delivery.

3. In the Shipping labels section, click on “Calculate rates”.

Select Calculate Shipping Rate

4. The Shopify Shipping Calculator opens. In the "Shipping From" section, select the origin country and enter the postal code.

Calculate Shipping Rate

5. In Shipping to select the destination country, and enter a postal code.

6. Enter the package length, height, width, and weight in the Package type section.

7. At last, click on calculate discount rates.

How to Optimize Shopify Shipping Cost?

Optimizing Shopify shipping costs is crucial for maintaining profitability while providing a seamless customer experience. By managing your shipping methods, packaging, and partnerships, you can reduce unnecessary expenses and improve the efficiency of your fulfillment process. With the right strategies, your shipping costs align with your business goals and customer expectations.

Shopify Shipping Discounts

Shopify offers discounts on shipping rates for its users, especially with USPS, UPS, and Canada Post. You can access reduced rates based on your store's plan. Take advantage of these discounted rates when creating shipping labels.

Choose the Right Carrier and Service

Different carriers offer various pricing models. Compare options such as UPS, FedEx, and DHL, and choose the one that offers the best rates based on your store’s average order size and delivery locations. Use Shopify’s built-in tools to compare rates and integrate with third-party apps like Shippo for a broader range of carriers.

Review Your Shipping Zones

Simplify your shipping zones to minimize the range of areas you ship to at higher costs. You can offer lower shipping rates to local customers and consider removing certain international destinations if the costs outweigh the benefits.

Use a Shipping App for Additional Savings

Shipping apps like ShipStation, ShipBob, or Easyship provide additional functionalities that help streamline fulfillment and offer discounts. Some apps also have features like bulk shipping or inventory management, which can save time and money.

Optimize Packaging

Custom packaging that fits your products can reduce the dimensional weight of shipments. This can save money on shipping costs, especially with carriers that charge based on the package volume. Look into flat-rate boxes if they align with your shipping needs.