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Shopify Shipping: How It Works

shopify shipping

When you operate the store, you need to think about shipping the goods because the customers need to get their goods on time. Sometimes, it can be a challenge to deliver the goods on time though. The most difficult thing is to keep up with timely delivery when you have an endless row of orders that need to be fulfilled and you are giving your customers the best possible price. 

There is no doubt, managing logistics is complicated, and the sellers often need to integrate the shipping options right into their shopping carts. Such a move allows to automate label printing and helps to prevent possible issues with shipping. Often, such kind of integration needs the use of a third-party service, and this means more money to pay for the business owner. 

However, this is not the case for Shopify merchants as soon as Shopify has already developed shipping options included in every Shopify account. With Shopify store, business owners do not need to pay additional fees to the third parties or develop a solution individually, but they get the shipping options included with Shopify.

What Is Shopify Shipping?

Shopify Shipping is the option that allows sending the purchased goods faster. This built-in service allows to solve a lot of shipping problems, including but not limited to international shipping, affordable rates, tracking of the shipment, delays, and more. With Shopify Shipping, you are going to get your labels printed fast, you can print multiple labels at a time, and you can get your orders into the delivery system quickly. 

Shopify Shipping works with such delivery companies as USPS, UPS, and DHL in the United States, and other national and private carriers in other countries, such as Canada Post in Canada, Sendle in Australia, and allows to choose multiple mail classes with each carrier. This means that the customers are going to have options of delivery to choose from, and it is a good thing because customers might need their purchase overnight or they might choose the cheapest delivery option. Generally, options available with Shopify Shipping are different for sellers depending on their location, but generally, the service includes tracking information, working with labels, ensuring the packages, and offers affordable rates for shipping, which are automatically included in the Shopify plan, which means no additional fees for Shopify Shipping.

Shipping rates and methods 

Before deciding on shipping options, you need to decide on rates for the shipping options you are going to offer. Generally, there are several options to choose from, and you will need to think about the financials of your business to decide on any.

Free Shipping Option

The option of free shipping is one of the best ideas to reduce the number of abandoned carts. With the option to choose the free shipping, customers are motivated to buy more and complete the order because it is easier for them to compare the prices and it is much more convenient to get your goods delivered than to go to the store, but the cost of delivery decides here. However, to enable a free shipping option for your customers, you need to choose one of the options listed below:

  • Higher prices for the goods
  • Lower margin (which means your profits are lower)
  • Slightly increased prices for goods and slightly power margin, which is a combination of the first two options
  • Making free shipping a bonus for some customers or a part of the promotional campaign.

It is often that the businesses choose to give a free shipping option for orders of higher than some specified cost. Having such a minimum order size set allows you to increase the average order size, but seemingly you are still going to pay for shipping from your margin. 

Real-Time Carrier Rates

Another popular strategy is to charge real-time carrier rates for shipping. As a rule, eCommerce service providers, such as Shopify offer shipping options and live pricing from selected carriers. This is a way for the customers to pay only for what they get. 

Flat Rate

Flat rate shipping is one of the simplest options from the customer’s point of view. Having a flat rate ensures that you are not undercharging or overcharging your customers. Moreover, it is easy to calculate with the order and works best when your items on sale are nearly the same size and weight. However, flat rate shipping is getting complicated if you have goods of very different sizes and weights on sale. Thus, the more various the inventory, the less likely you are going to choose flat-rate pricing. 

Local Delivery Option

A local delivery option is one of the options for the customers to choose if they need local delivery to be done, which is the simplest shipping method. With local delivery, you will need to customize a radius or a list of zip/postal codes for the availability of the option of the local delivery. Only customers who are ordering within specified areas are showed the option of the local delivery, therefore there is a need to be careful with eligible areas. 

Insurance and tracking

Insurance and tracking may take a big part of the cost for shipping but it depends on the goods that you sell. In general, shipping insurance and tracking take a considerable part of the cost when you are selling costly items. However, it makes sense for both the business and the customer. However, for the vast majority of goods and carriers, neither insurance nor tracking is really expensive. Either way, insurance and tracking provide you with recourse if one of your packages gets damaged or lost. Interestingly, some delivery services already have insurance and tracking included in the price for their services, so make sure you consider this option when you are choosing a carrier.

Key Features Available With Shopify Shipping 

The majority of options discussed in the article are available with Shopify Shipping. Practically, Shopify Shipping currently meets the needs of most businesses selling online. The features offered by Shopify Shipping include but are not limited to:

  • Integrations With Major Carriers, such as Canada Post, DHL, USPS, and UPS.
  • Printing Multiple Labels Simultaneously with a regular printer
  • Insurance coverage up to $5,000 on eligible shipments.
  • Option for Flat Rate Or Calculated Shipping Options
  • Customer Service with real-time updates and tracking orders.
  • International Features: Print customs forms with your shipping labels.
  • Address Checker that allows flagging potentially incorrect addresses.

How To Set Up Shipping On Shopify 

Another big advantage of Shopify Shipping is the fact it is easily integrated with Shopify. As soon as Shopify Shipping is already built-in the accounts on default, it is easy to connect it and start working with it. The list of steps below is going to guide you through the process of setting up and starting working with Shopify Shipping.

1. Add your shipping address

When you are setting up your business with Shopify, you need to enter your business address, so your address is probably already there. However, make sure the address is correct. If you are going to ship from a location that is different from your business, make sure you added this address to the corresponding section. 

2. Choose your shipping services

This largely depends on your location. This can be USPS, UPS, DHL, or Canada Post or any delivery service that works well in your country. 

3. Add weights of your products.

With the aim to know the real-time cost for shipping, you need to add weights for all your products. 

4. Select a default package

When it comes to shipping, you will be prompted to choose the default package option. With the use of weights and packages, Shopify Shipping is going to show you real-time rates for shipping the goods. 

5. Set up your printer

You will need a printer to print your labels, so get ready to set up your printer. This can be just any model, as soon as printed labels might be attached using a packaging glove or a packing tape.

6. Add specific features if necessary

Some sellers might want to add the option of expedited shipping or you might need to limit sending to specific countries only.

Contact our team

While the process looks quick and easy, don’t hesitate to reach out for help at any step of the process. The SOFTLOFT company has got rich expertise in setting up Shopify stores and building custom online stores from scratch, and we’ll be happy to help. Contact us for immediate help and support.

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