How Is Shipping Cost Calculated on Shopify?

When you set up a Shopify store, you’ll need to choose your shipping methods. This will include deciding on shipping rates, which can be a complex task. In this article, we’ll break down how shipping costs are calculated on Shopify, so you can make the best decision for your business.

There are three main ways to calculate shipping fees: flat rate, order-based, and weight-based.

With flat rate shipping, you charge a fixed price for shipping regardless of the order size or weight. For example, you might charge $5 for shipping regardless of what the customer buys. This is the simplest way to calculate shipping fees, but it’s not always the most accurate.

Order-based shipping calculates shipping fees based on the total price of the order. So, if your customers spend more money, they’ll pay more in shipping fees. This is a good way to encourage customers to buy more items from your store.

Finally, with weight-based shipping, you charge shipping fees based on the total weight of the order. This is the most accurate way to charge for shipping, but it can be complicated to set up.

Once you’ve decided on a method for calculating shipping fees, you need to set up your shipping zones and rates. Shipping zones are the regions that you ship to, and they can be based on countries, states, or zip codes. You’ll need to set up a separate shipping rate for each shipping zone.

PRO TIP: When calculating shipping costs on Shopify, be sure to take into account the weight and dimensions of your products, as well as the shipping destination. Shipping costs can vary greatly depending on these factors, so it’s important to get an accurate estimate before setting your prices.

When setting up your rates, you’ll need to decide on a few things: the name of the rate (for example, “Standard Shipping”), the type of rate (flat rate, order-based, or weight-based), and the price or weight threshold (if applicable). You can also add conditions to your rates, such as free shipping for orders over $100.

Once you’ve set up your shipping zones and rates, your customers will see the applicable shipping options and prices at checkout. They can then choose their preferred option and complete their purchase.