Shopify introduced calculated shipping in the US and Canada in spring 2017. If you're mystified about how to set up calculated shipping on Shopify, keeping reading for step-by-step instructions, we made it easy for you to sell on Shopify with confidence.
What is Shopify Calculated Shipping and How Does it Work
Shopify Calculated Shipping is a powerful shipping rate calculation system that makes it easier to manage delivery costs across multiple types and sizes of orders. It simplifies the entire process by automatically calculating accurate rates for domestic and international packages based on carrier rates, dimensions, weight, destination, and other factors. This gives store owners more control over their shipping costs and makes fulfillment faster and simpler.
Here's how it works: Shopify calculates the applicable delivery cost using all known factors associated with the order, such as product weight, size, and destination address. Based on this information, Shopify will generate an estimated price for each available carrier type (e.g., USPS, dhl ecommerce) which is then displayed to customers during checkout in the form of adjustable carrier calculated shipping rates so they can pick their best-suited option. Stores can override or add custom fee rules if needed. They also have access to tax-exempt methods tailored to specific customer needs while staying compliant with local laws.
Perks of Shopify Calculated Shipping
If you haven't taken advantage of calculated rates, now is the time to start. Here are six advantages of Shopify's calculated shipping.
1. It's free and saves time
Shopify's shipping calculator is a free tool for sellers in the US and Canada. You don't have to calculate shipping prices anymore manually. If you want to start selling on Shopify, but couldn't stomach the hassle of calculating shipping rates manually, you can breathe a sigh of relief. They made it so easy!
US sellers can set up carrier calculated shipping for USPS and DHL. Canada Shopify sellers can add calculated rates from Canada Post.
2. Better user experience and sales conversions
Carrier calculated rates on Shopify greatly improve the user experience at checkout. With Shopify's calculated rates, shoppers know exactly how much shipping costs, reducing buyer uncertainty. That means more sales for you and less abandoned carts.
3. Get the lowest shipping rates
As an online seller, keeping shipping prices dirt cheap attracts customers. With Shopify discounted USPS and Canada Post rates, the prices are less than you'd see at the post office. Discounted USPS shipping prices can entice customers and lead to more sales. For buyers, ever shipping dollar counts!
4. Customers love having options
With Shopify, US sellers can offer a range of shipping methods to meet customers' needs. The power of choice can go a long way toward customer retention so you can get repeat business.
5. Printable shipping labels make life easy
Skip the post office. You can print Shopify shipping labels from home. Your customer will also receive a link to track the package, ensuring a smooth transaction and less "Where's my order?" emails.
6. No more wasted time looking up international shipping costs
For US-based international sellers, it can be time-consuming to get shipping rates for each country. Shopify does all the work for you with calculated shipping rate, eliminating the chance that you make a costly shipping mistake. Now you can ship worldwide worry-free. Plus, your customers will get the cheapest international shipping rates.
Note: If you're outside the US or Canada, or if you want to offer third-party calculated rates from FedEx, UPS, or other Shopify apps, you can upgrade to the Advanced Shopify Plan.
Disadvantages of Shopify Calculated Shipping
Shopify Calculated Shipping is an excellent tool for businesses to manage their shipping needs efficiently. However, some potential drawbacks should be noted.
Accuracy of Shipping Costs
First and foremost, the accuracy of your shipping costs may be impacted due to the use of this tool. Shopify Calculated Shipping will estimate the price based on weight and distance. Still, variables such as address accuracy or carrier fees can result in differences between the estimated and actual costs upon delivery. This can cause discrepancies between what customers paid for items versus what you incur in carrier charges.
Limited Shipping Options
Another concern when using Shopify Calculated Shipping is how difficult it can make offering flat rate pricing options or certain specialized services like priority mail delivery or signature confirmation. Suppose you're unable to provide these options via calculated shipping. In that case, it may limit your ability to offer different shipping services that could benefit your business (and customers).
Can become Time-Consuming
Finally, it would help if you changed rates based on specific rules because they vary due to seasonal fluctuations or promotional offers. In that case, this requires manual overrides, which can become time-consuming and inefficient. So while Shopify Calculated Shipping provides convenience by estimating reasonable costs upfront at the time of purchase - caution should be taken so that you understand the full implications associated with its use before implementation to ensure all costs align properly after checkout is completed.
Tips When Setting up Your Shipping Rates in Shopify
Setting up shipping rates in Shopify can seem daunting, but it doesn't have to be. To maximize the efficiency of your business and increase customer satisfaction, it's essential that you set up shipping rates correctly.
Here are some tips for setting up your shipping rates in Shopify:
Standardize your Shipping Rates: Use flat rate or free shipping options instead of basing fees on the weight or distance of the package. This will simplify things, maintaining consistency and pricing fairness across geographic areas with different delivery costs.
Consider Offering Free Shipping Options
Reasonable free shipping thresholds will help encourage customers to purchase more items at once and eliminate any surprises at checkout, leading to increased sales and fewer abandoned carts.
Ensure Accurate Delivery Estimates
Automatically calculate taxes & estimated delivery dates after each item is added to the cart, so customers have all information before completing the order checkout process, allowing them to make educated decisions about their purchases ahead of time without any unwelcome surprises during checkout or after delivery has been completed.
Offer Express Shipping Options for Urgent Orders
Customers can rest assured by offering express shipment options when needed, knowing they don't need to sacrifice speed if they order something urgently—like an anniversary gift! Plus, if you offer discounts on these services, you may even be able to offset some losses associated with delivering goods faster than standard methods allow while still keeping profits high enough that they outweigh additional charges incurred from express shipments (or even turn a profit).
Creating Shipping Zones for Your Shopify Store
Creating shipping zones for your Shopify store can be a great way to save on costs and increase efficiency when delivering products to customers. Here's how you can create effective shipping zones for your Shopify store:
Decide which countries and regions you want to target
It would help if you focused on specific geographical areas or customer bases requiring different delivery service levels due to location. Once you have identified the key regions, decide what level of delivery service each region requires––should each area receive priority express or standard post?
Determine what types of products will be shipped from each region
Some items may require special handling, such as temperature control; consider these requirements when setting up the different shipping zones. Additionally, ensure that any applicable taxes are included in the setup so that customers know what they will owe upfront after purchase confirmation.
Calculate the cost incurred by each zone
Calculate its distance from your warehouse/fulfillment center and other factors like weight and size restrictions. In addition, make sure that there is enough time allocated for packages sent through higher-priced carriers (such as FedEx), so they can reach their destinations safely before expected arrival times – this is especially important if you plan on offering free international shipping! Utilizing proper research tools such as transit maps will help give an accurate picture of estimated timelines for various deliveries around the globe.
Steps to Set-Up Shopify Calculated Shipping
It's easy to set up Shopify's calculated shipping rates. Just follow these steps!
1. See the Shopify shipping zones guide to prepare your shipping zones. A shipping zone is a group of countries or regions with the same shipping rate. Customers can only checkout if you add their region to your shipping zones.
2. Use this link to calculate rates for each zone.
3. Login to Shopify.
4. On your Shopify store's homepage, click Settings. Then, click shipping.
5. Click Manage Rates to add a shipping rate to the shipping profile you want to edit.
6. Click Add Rate.
7. Select "Use carrier or app to calculate rates."
8. Choose the desired shipping service from the drop-down menu.
9. Select the shipping methods you want to offer customers at checkout.
10. If you charge a handling fee, enter it now.
11. Click Save.
Setting up Shopify Calculated Shipping right is essential if you want your business to succeed in its online venture. It allows you to provide customized shipping which can be tailored to meet the needs of different types of businesses. This cutting-edge technology drives efficiency and reduces costs—two essential ingredients for a business’s success! To wrap up this blog post, take a few minutes to do a final check on all your settings and make sure everything is set up correctly. Once that’s done, you’ll be ready to put your store out there and get customers through the door! And don't forget: if you need any help with optimizing shipping costs or managing orders, Simpl is here to help. Get in touch!