Shopify Shipping Rates 2024 | All You Need To Know
By Sam Nguyen
Key Takeaways
- Shopify Shipping permits store owners to choose from options, including Flat Rate Shipping, General Shipping, Weight-Based Shipping, Price-Based Shipping, and Free Shipping.
- Shopify Shipping partners with major carriers like USPS, DHL, UPS, and Canada Post to provide various shipping options for merchants.
In this article, we will provide you with comprehensive insights into Shopify Shipping rates and how they can be leveraged to optimize the operations of your ecommerce store.
Shopify Shipping Rates | 2023 Update
All Shopify account holders with a monthly plan can avail of Shopify Shipping at no additional cost. However, this service is exclusively available to ecommerce businesses that ship orders from within the US, Canada, or Australia.
One of the key benefits of Shopify Shipping is its seamless integration with the Shopify platform, eliminating the need for third-party app installations. Shopify’s website creator offers users real-time shipping rates, ensuring accurate shipping cost estimation and preventing overcharges or undercharges.
Additionally, Shopify offers a Shipping rates calculator. This tool allows you to compare prices from Shopify’s partner carriers (to be discussed later) for your specific products, enabling you to make a well-informed decision that aligns with your business goals.
With Shopify Shipping, you are not only limited to using your preferred carriers’ rates; you also have the option to set fixed shipping rates for all purchases.
Flat Rate Shipping
Flat rate shipping is a strategy where a business applies a specific, uniform fee for every shipment. For instance, by establishing a flat rate of $5, every customer has to pay this amount for every order delivery, regardless of the size, value, or delivery duration of their order.
One of this strategy’s core advantages is knowing exactly how much every customer will pay for shipment, allowing for more accurate overhead and profitability calculations. It also benefits repeat customers, ensuring they pay a consistent rate every time.
However, the uniform delivery fee model has some downsides. Overcharging or undercharging can occur. If you undercharge, it might negatively impact your profit margins. Meanwhile, if you overcharge, customers might seek out a cheaper alternative.
A uniform delivery fee may be a practical option if your company operates on a strict budget or seeks a straightforward delivery cost solution.
General Shipping
General shipping methods, akin to flat rate shipping, allow you to set a specific shipping amount while offering various choices to your customers.
For instance, you can establish a fixed rate for expedited delivery, standard delivery, and tracked shipping. This approach retains predictability in the shipping fees but provides more flexibility in the shipping choices offered. Customers can then select the most suitable shipping method at checkout. This versatility can significantly enhance customer service.
Weight-Based Shipping
With a weight-based shipping method, you adapt the flat shipping fees according to the weight of the customer’s order.
For instance, you charge a $5 shipping fee for all orders up to 10kg, and anything above that weight would cost $10. Here, shipping rates displayed to the customer align with the weight of their specific order.
This method is convenient for businesses with products that significantly vary in weight. If weight-based shipping is your choice, accurately list each product’s weight to prevent incorrect charges.
Price-Based Shipping
Price-based shipping lets you determine the shipping rate based on the customer’s order price.
Commonly, stores establish price thresholds customers must reach to be eligible for discounted or even free shipping. Perhaps your standard shipping rate is $5, but if a customer spends over $50, you could charge them $3.99.
This strategy can motivate customers to spend more, especially if you offer a free shipping option. Customers just short of the qualifying amount often add more items to their cart for discounted shipping rates.
Free Shipping
As the name suggests, free shipping means your customers don’t have to pay the shipping fee for their shipment.
If you decide to offer free shipping on all orders, just set your flat rate shipping cost to $0.
Free shipping can persuade customers to buy and foster brand loyalty. However, remember to factor in your carrier’s shipping costs to ensure it doesn’t erode your profits.
Shopify Deliverr – an acquisition of Shopify Shipping Carrier
On 7/11/22, an exciting addition was made to the Shopify family with the acquisition of Deliverr, an e-commerce logistics startup, for a whopping $2.1 billion. Based in San Francisco, Deliverr has a robust logistics network facilitates the delivery of more than a million dollars worth of goods every month to many merchants across the United States.
Through this strategic acquisition, Shopify aspires to provide an all-encompassing platform for all logistics requirements and emerge as a strong contender to Amazon Prime, promising next-day and two-day delivery services.
The integration of Deliverr’s features into the Shopify platform is eagerly anticipated. Until then, users can continue to avail exclusive services from the previously mentioned carriers. Additionally, they can benefit from discounted rates from these carriers, with real-time rates computed by the supplier. At checkout, the customer’s basket and delivery information are relayed to the carrier, who promptly provides a shipping rate for the order.
Shopify Shipping Carriers | 2023 Update
One primary advantage of carrier-calculated shipping is the exact cost of shipping the product charged to the customer, thereby eliminating both profit and loss from this aspect.
The discounted rates offered by each supplier are contingent on the Shopify plan you’ve opted for. The table beneath elucidates the maximum domestic shipping discount offered by each supplier:
| Shipping Carrier | Basic Plan | Advanced Plan | Shopify Plan |
| USPS | Up to 64.5% | Up to 88.5% | Up to 88.5% |
| DHL | Up to 71.5% | Up to 76% | Up to 73.9% |
| UPS | Up to 66.53% | Up to 67.20% | Up to 66.86% |
| Canada Post | Up to 17.7% | Up to 30.5% | Up to 23.5% |
Shopify Shipping offers the opportunity to utilize one of its partnered carriers to dispatch your orders. The carriers partnered with Shopify include USPS, DHL, UPS, and Canada Post.
USPS
The United States Postal Service (USPS) is a cost-effective choice for shipping smaller items, and it’s often the most affordable for small, light packages. You can buy USPS shipping labels through Shopify, eliminating the time to wait in line at a post office.
USPS doesn’t require a minimum shipment amount.
Additionally, it offers international shipping and order tracking, providing customers with updates regarding their delivery status.
DHL
DHL is renowned for its speedy and global delivery services. If your business primarily involves international shipping, DHL could perfectly fit you. DHL is genuinely worldwide, with its expansive reach covering over 95% of the global population and servicing over 220 countries and territories. You can access DHL customs forms and secure international deliveries, typically within three to five days, via Shopify Shipping.
UPS
UPS is recognized for its rapid delivery services, making it the top choice for time-critical consignments among Shopify’s partner carriers. Its Next Day Air service guarantees delivery by the next day.
Furthermore, its advanced tracking system lets you and your customers monitor the shipment progress. UPS also offers the convenience of scheduling pickups from various locations, which is handy when storing stocks at different sites.
Canada Post
Canada Post is Canada’s principal mail carrier service exclusively available to Shopify vendors shipping from Canada. It’s the ideal solution for domestic sales within Canada. However, for the US-based sellers, an alternative carrier is required.
The rates for Canada Post vary based on your location, and while it does offer international delivery, the rates differ for shipments to the US and the rest of the world. An important note for those using Canada Post through Shopify Shipping is that it only supports boxes and soft packages, not envelope packages.
Shopify Shipping Rates: FAQs
Shopify Shipping Rates: Summary
The flexibility of Shopify Shipping allows you to establish your shipping rate based on different parameters, including flat rate, weight-based, price-based, and general rate.
Shopify Shipping has teamed up with leading carriers such as USPS, UPS, DHL, and Canada Post, thus ensuring quality shipping service while preserving your time and profits.
Final words
When managing an ecommerce store on Shopify, utilizing Shopify Shipping can significantly simplify your operations. Navigating through various shipping services, carriers, and rates, Shopify Shipping helps you identify the best-fit shipping option for your business.
