Shopify Shipping Rates: Setup and Configuration Guide

Shopify shipping rates determine how much customers pay for delivery at checkout. Getting shipping right is critical—unexpected shipping costs are a leading cause of cart abandonment. This guide covers how to configure shipping rates that work for your business and meet customer expectations.

Shipping Rate Types

Flat Rates

A single price for all orders within a shipping zone:

• Example: $5.99 flat rate shipping
• Best for: Products with similar sizes and weights
• Pros: Simple, predictable for customers
• Cons: May overcharge or undercharge depending on order

Carrier-Calculated Rates

Real-time rates from shipping carriers based on package dimensions and destination:

• Carriers: USPS, UPS, FedEx, DHL, and others
• Best for: Varying product sizes and weights
• Pros: Accurate pricing, multiple carrier options
• Cons: Requires accurate product weights and dimensions

Note: Calculated rates require Shopify plan or higher, or Advanced Shopify.

Free Shipping

No shipping charge, either for all orders or above a threshold:

• Example: Free shipping on orders over $75
• Best for: Increasing average order value
• Pros: Reduces cart abandonment, encourages larger orders
• Cons: Shipping costs come from your margins

Price-Based Rates

Different rates based on order total:

• Orders $0-$50: $7.99 shipping
• Orders $50-$100: $4.99 shipping
• Orders over $100: Free shipping

Weight-Based Rates

Different rates based on order weight:

• 0-1 lb: $4.99
• 1-5 lbs: $8.99
• 5+ lbs: $14.99

Setting Up Shipping

1. Access Shipping Settings

Go to Settings > Shipping and delivery in your Shopify admin.

2. Create Shipping Zones

Shipping zones define where you ship and at what rates:

1. Click Manage rates next to a shipping profile
2. Click Create shipping zone
3. Name the zone (e.g., "Domestic" or "International")
4. Select countries or regions in this zone
5. Save the zone

3. Add Shipping Rates

Add rates to each zone:

1. Click Add rate in a shipping zone
2. Choose rate type (flat, calculated, or conditional)
3. Set the rate name (what customers see at checkout)
4. Set the price
5. Add conditions if needed (min/max price or weight)
6. Save the rate

Shipping Profiles

Shipping profiles let you set different rates for different products:

• General profile: Default rates for most products
• Custom profiles: Special rates for specific products (oversized items, fragile goods)

Create custom profiles for products that require different shipping handling.

Calculated Shipping Setup

For carrier-calculated rates:

1. Enable calculated shipping in your shipping zone
2. Select which carriers to offer (USPS, UPS, etc.)
3. Choose which services (standard, express, overnight)
4. Ensure all products have accurate weights
5. Add default package dimensions

Product Weight and Dimensions

Accurate product data is essential for calculated rates:

1. Go to each product in your admin
2. Find the Shipping section
3. Enter the Weight
4. For calculated rates, you may need product dimensions

Shipping and Collections

Organize products by shipping requirements using collections:

• Create collections for products with special shipping (oversized, fragile)
• Use collections to identify products that qualify for free shipping
• Organize products by fulfillment location

Local Delivery and Pickup

Beyond shipping, Shopify supports:

• Local delivery: Deliver to nearby customers yourself
• Store pickup: Customers collect orders from your location

Configure these under Settings > Shipping and delivery.

Shipping Discounts

Create shipping-specific discounts:

• Discount codes for free or reduced shipping
• Automatic free shipping on orders over a threshold
• Free shipping for specific products or collections

Best Practices

• Be transparent: Show shipping costs early, not just at checkout
• Offer free shipping threshold: Increases average order value
• Test your rates: Place test orders to verify accuracy
• Keep weights updated: Inaccurate weights lead to lost margins
• Offer options: Let customers choose speed vs. cost

Tracking Performance

Monitor shipping in analytics:

• Which shipping methods customers choose
• Cart abandonment related to shipping costs
• Average shipping cost per order

Conclusion

Shipping rates directly impact your conversion rate and profitability. Start with a simple rate structure that covers your costs, then refine based on customer behavior and business needs. Free shipping thresholds are particularly effective for increasing order values while managing customer expectations.

Related Resources

• Shopify Help: Shipping
• Shopify Fulfillment Network
• Creating Shopify Discounts