This guide will help you set up and optimize Shopify Shipping so you can ship on Shopify in the most customer-centric and cost-effective manner possible.
We know your entrepreneurial heart beats faster when you see your online business grow and your brand becomes more popular.
But keeping up with the rising number of orders can rapidly become highly stressful and costly. So, the faster you switch to an effective alternative for order fulfillment management, the better it will be for sustainable growth.
What Is Shopify Shipping?
Shopify Shipping simplifies order fulfillment by allowing you to manage everything within the platform. With Shopify as your shipping platform, you maintain a healthy balance between controlling operational costs and delivering high customer experiences that place you at the top of customer preferences.
The order fulfillment process improves with Shopify Shipping because you’re able to:
- Choose from the leading carriers Shopify has partnered with and access great shipping rates
- Buy shipping labels at discounted rates and print them directly from your Shopify store admin
- Offer customers the possibility to select their preferred shipping service at checkout instead of displaying flat rates
Shipping with Shopify helps you enable a better shipping strategy, more affordable shipping options, and better order fulfillment and delivery times. By eliminating hiccups in fulfilling and shipping orders, you can concentrate on other aspects that sustain business growth.
Why Shipping Smartly Is Essential to Your Business and Profitability
A smooth browsing experience, reasonable prices, and excellent packaging won’t be enough without a shipping strategy that maintains profitability while meeting your customers’ expectations.
But what do customers expect from an online store?
According to Shopify’s report “The Future of Commerce,” 74% of customers prefer to see the exact shipping cost before checkout, while 68% of customers are more likely to buy from a store that offers free returns and estimated arrival times.
High shipping prices are a source of low conversions and lost opportunities. A Baymard Institute report shows that 49% of customers abandon carts because of high shipping costs. Offering free shipping for all orders might not be the solution for your store, as it impacts your profit margins, but you can set a free shipping threshold and offer shipping alternatives.
While customers expect free shipping, upfront shipping costs, and return policy information visibly displayed on site, that’s not enough to maintain their trust and convince them to shop again from your brand. Customers expect constant updates about delivery and transparent communication about delays.
Studies show that 69.7% of customers are less likely to order from a store again when the merchant doesn’t inform them about delayed deliveries. No wonder the most common customer support requests are related to shipping.
So, what’s the formula for convenient and profitable shipping?
Based on the customer shipping expectations research, Shopify shows that the winning formula is to provide fast, free, sustainable, branded, and dependable shipping.
It’s essential to go beyond what data shows or other stores do. Proactivity always pays off, so remember to ask customers for feedback about the shipping experience and use the insights to improve your strategy.
Shopify Shipping is vital in helping you cut carrier costs and ensure a faster and easier fulfillment process. You can save up to 88% on shipping costs by using Shopify’s partner carriers, which gives you enough room to adjust your shipping strategy and find the winning mix.
Shipping Right vs. Wrong Example
One of the biggest mistakes an online business can make is relying on a single carrier. Imagine the costs you must deal with if your carrier experiences delivery delays and you have no alternatives. Also, the lack of different options and inconvenient shipping costs are a source of high shopping cart abandonment no store affords.
For effective shipment, you want to switch to multiple carriers, allowing you to pick the most suitable carrier depending on criteria like the package type or the order address. Having multiple carriers also will enable customers to select the most convenient alternative.
When your eCommerce business is growing, but you’re not there yet to access the discounts only high-volume merchants could afford, you’re probably stuck with full-price shipping labels.
You can get better shipping label prices by using Shopify Shipping. Generating the shipping label is free, and the price you have to pay for the parcel shipment will also be lower, as you can choose from Shopify carrier partners.
Failed deliveries caused by inaccurate delivery information are a source of high costs, customer dissatisfaction, and churn. A small mistake can generate an invalid delivery address, messing up that great experience you’re trying to offer at each offer.
You can avoid failed deliveries by using a shipping address validator that integrates seamlessly with your store. An address validator allows you to verify the address typed by your customer at checkout or right after payment.
Shopify Shipping Ecosystem
Shopify has a rich app ecosystem, allowing you to choose from over 6,000 apps available on Shopify App Store. You can build your own Shopify Shipping Ecosystem by selecting the shipping apps that address your store’s unique needs and help enhance and customize the customer shopping experience by adding new functionalities.
Included Shopify API
The shipping apps you can find in the app store are developed to seamlessly integrate with your Shopify store and save resources that you would otherwise invest in developing an in-house solution.
Thanks to a suite of Shopify APIs, you’ll find numerous apps developed to extend the platform’s built-in shipping features and simplify the entire process.
For example, apps using the CarrierService resource allow stores to provide real-time shipping rates for carrier services such as FedEx, UPS, USPS, or Canada Post. The stores can show a list of shipping rates at checkout and adjust the rates or discounts based on the products included in the customer’s shopping cart.
Examples of Third-Party Shopify Shipping Apps
You’ll find over 1,700 third-party shipping apps included in the “Orders and shipping” on Shopify App Store. Below, you can find three Shopify apps that help you improve shipping management in different stages of the process, thanks to the features complementing the platform’s built-in capabilities.
- Shippo: Shippo is an end-to-end shipping platform that allows you to manage your Shopify store’s orders in one place. The multi-carrier shipping solution helps you access the best shipping rates from 85+ carriers globally.
The shipping app offers multiple features, including real-time tracking for you and your customers, personalized post-purchase experiences, discounted shipping labels, and return labels that you can include in the customer’s package.
- Address Validator: Address Validator helps you automate shipping address validation pre-purchase or post-purchase. The app works for all Shopify store types and allows you to maintain consistent customer interactions by customizing the interface, forms, and follow-up emails.
The features offered by the Address Validator help you reduce the number of failed deliveries and the costs generated by delivering to invalid addresses and provide a better customer experience during checkout and post-purchase.
- Rich Returns: Rich Returns helps stores of all sizes automatically process returns, exchanges, and refunds through a customizable and branded returns portal. The return management tool enables you to maximize profits and create positive customer experiences.
The app allows customers to request returns or exchanges in just a few clicks, saving both sides valuable time. You can also set smart rules that offer customers instant exchange options based on your live inventory.
Each of these apps helps you enhance the features you can find in Shopify Shipping. Let’s dive into what Shopify Shipping brings to your store, and it will be more evident which apps you need to add to your Shopify ecosystem.
Getting Started With Shopify Shipping
Setting up Shopify Shipping is easy, and the fine-tuning you can do within the platform helps you bring your shipping strategy to life. This section answers Shopify merchants’ most burning questions about setting up and optimizing Shopify Shipping.
Which Shipping Carriers Are Supported by the API?
Shopify Shipping helps you connect your store with its partner carriers from the United States, Canada, the United Kingdom, France, Italy, Spain, and Australia.
According to Shopify’s Help Center, the shipping carriers supported by the API are:
- United States: USPS, UPS (not available in Puerto Rico), DHL Express (the continental United States only)
- Canada: Canada Post
- United Kingdom: Evri (for businesses based in the United Kingdom), DPD (for businesses based in the United Kingdom)
- France: Colissimo (for businesses based in France), Mondial Relay (for businesses based in France), Chronopost (for businesses based in France)
- Italy: Poste Italiane (for businesses based in Italy)
- Spain: Correos (for businesses based in Spain)
- Australia: Sendle
More eligible fulfillment locations are added regularly. You can check changelog.shopify.com for updates if you’re not operating in the areas above.
How to Set Up Shopify Shipping
Shopify Shipping allows you to set up your general and custom shipping rates. To do this, go to your Shopify Dashboard, click “Settings,” then “Shipping and Delivery.”
Setting up general shipping rates
- In the “Shipping” section, click on “Manage rates.“
- At the top, you see all your products that the general shipping rate applies to.
- In the “Shipping from” section, click on “Create shipping zone.“
- Make sure you set the shipping location correctly because it defines the shipping rate for customers in that specific country or continent.
- Now, you can add the shipping rate if you’ve decided that you want to charge for shipping in this newly created shipping zone.
- Click on “Add rate,” and you see the two options:
- Set up your own shipping rates: This option allows you to set up a flat rate that will show up at checkout. The price you set has to be reasonable for both sides. You can set different prices depending on the shipping speed, package weight, or order price.
- Use carrier or app to calculate rates: This option generates carrier rates automatically in real-time. The shipping rate is calculated depending on the package size, weight, and destination. You need to choose the carrier and the services you want to offer, from budget-friendly to fast shipping options.
Setting up custom shipping rates
Custom shipping profiles help you add custom rates or destination restrictions for specific products or groups of products.
- Click on “Create new profile.“
- Set the name of the shipping profile. It will only be visible internally.
- Then, you add the products to which the custom shipping rate would apply.
Setting up packaging options
Shopify also allows you to set up packaging options to get accurate shipping rates.
Take the following steps:
- Go to Shopify Dashboard > Settings > Shipping and Delivery > Saved Packages > Add package.
- Select the package type and add the size and weight. Make sure you add all package types to obtain the most accurate shipping rates for each order.
- Watch “The Beginner’s Guide to Shopify Shipping” to learn more tips about setting up and optimizing Shopify Shipping.
How to Use Shopify Shipping to Print Your Labels
One of the most asked questions about this topic is, “How to create a shipping label on Shopify?”
First, you’ll have to buy Shopify Shipping labels. Buying Shopify Shipping labels is only available if you have an eligible fulfillment location. Besides, you need accurate shipment details and a Shopify-supported label printer.
You can purchase Shopify Shipping labels individually or bulk from the Shopify admin or the Shopify app. The shipping label cost is displayed in your local currency before taxes and will be billed in USD through your Shopify account.
If you want to save time and money, you can collate the shipping label with the customs form and packing slip as part of the label purchase process.
The next step is to download and print shipping labels. If you use a label printer, you simply stick it on your package, and if you use a desktop printer and paper, you can tape it to the package or use a packing sleeve.
Once you add all documents to the package, all you have to do is to schedule a pickup or take the package to the carrier’s drop-off location.
Watch this video to see how to buy shipping labels directly from your Shopify admin or the Shopify app and learn some tips about printing labels:
How to Get Discounted Shipping Rates From Shopify Shipping
The discounts you can get from Shopify’s partner carriers vary depending on your Shopify plan. In the table below, you can see the maximum discounts available by carriers for Shopify Shipping users in 2022:
The Shopify Shipping Calculator helps you find discounted shipping rates depending on package origin, destination, type, and weight.
Besides discounted shipping rate options, you can offer free shipping for orders that meet specific parameters, such as minimum order threshold or package destination. The shipping rate changes automatically to $0 at checkout for orders that qualify for free shipping.
How To Handle International Shipping on Shopify
If you’re considering growing your business by expanding internationally, there are some things you should consider when designing your international shipping strategy:
- The countries, regions, or continents you want to ship to
- The products you want to send to these international zones
- The local rules and regulations that apply to your shipments
- The transparent communication customers expect when it comes to delivery costs
- The costs of shipping internationally various order types
While some online business owners are adventurous, others are too cautious about expanding in international markets.
A balanced attitude towards this new business opportunity implies simulating various international shipments and paying attention to all factors that determine the cost of international shipping:
- Packaging: finding a supplier that helps you maintain a balance between low costs and sturdy packaging.
- Cost of shipping: determinating the shipping price for various domestic order sizes and deciding when it’s best to apply free shipping, flat rate shipping, or carrier rate shipping.
- Handling charges: calculating the cost you apply to ensure quality shipping depending on how much it takes to prepare an order for shipment.
- Duties and taxes: staying aware of the extra costs that may apply to the shipped products depending on the destination country and considering them in setting the pricing strategy for the targeted international markets.
We advise you to thoroughly analyze all these variables and options to define an effective international shipping strategy.
Using Shopify Shipping for international deliveries comes with numerous advantages:
- You use multi-carriers to access lower shipping rates.
- Customers can pick their favorite delivery methods, choosing between fast or cheap.
- Customers receive constant tracking updates.
- You can enable insurance features to get covered in case of lost or damaged parcels.
Now that we covered how to set up Shopify Shipping, we also want to share helpful tips for a successful shipping plan and tools to enhance the platform’s functionalities.
Helpful Shopify Shipping Tips and Tools
Shopify Shipping simplifies work for you and there are some aspects you should be aware of as they help you positively impact this vital process for eCommerce stores.
Starting from the questions we often receive from Shopify users, we want to check some tips and tools that will help you get the most out of Shopify Shipping.
How Do I Keep Shipping Costs Low?
Shipping as a growing merchant can sometimes be challenging, as you can’t access the local delivery rates of big players, let alone international rates. Many Shopify users switch to using Shopify Shipping to cut carrier costs but also buy and print discounted labels.
Besides better shipping rates from a shipping company and for different locations, you can also use flat-rate shipping for orders within a specific delivery area or weight range that meets a specific order threshold.
Adjusting the packages can also bring significant savings because shipping costs depend on the package’s size and weight. If you can’t find a size that meets your needs, pay less for the air inside the box by designing a custom shipping package. Lightweight packing materials help you reduce the weight of your packages. Corrugated boxes are stronger and lighter, so you might want to keep them in mind.
How Do I Choose a Shipping Rate?
Variables like package size, weight, and destination influence the shipping rate, so you have to take into account various scenarios and not settle for shipping that is so low that you lose money or so high that you’re scarring off potential and existing customers.
Shopify merchants that use Shopify Shipping can enable multi-carrier shipping, find the best rates for different locations, and set up custom shipping rates for specific destinations or product types. If your business is in the US or Canada, you can make real-time shipping calculations and choose the best rate.
How Do I Replace Lost and Damaged Products?
While you’re 100% aware and responsible for how you pack your orders, your control is limited once you pass the package to the carrier. Lost and damaged packs or products might occur.
Shipping insurance is a best practice you can apply to avoid losing resources due to lost and damaged products. It is a small investment compared to the costs bought by poor customer experiences.
The best way to deal with delays caused by lost or damaged goods is to quickly resolve the issues and proactively communicate with your customers so that their feelings don’t affect their motivation to buy from you again in the future.
How Do I Avoid Sending Incorrect Items?
Adding address validation to the checkout process helps you effectively avoid and reduce failed deliveries and returns. By using an automated address validator, you’re saving essential resources and improving shopping experiences.
As Shopify doesn’t have a built-in solution for address validation, you can install a dedicated app from the App Store, like Address Validator, which works for all Shopify users. The app enables automated address validation before or after checkout.
The app catches human errors automatically so you can prevent shipping to invalid addresses, delivery delays, and returns. It also creates a smoother checkout for your customers, with prompts that draw their attention and helps them add missing information or correct mistakes.
How Do I Handle Backorders and Inventory Issues?
When sales are booming, it’s time to celebrate success and apply your tactics for out-of-stock products or low inventory periods. You can’t get caught off guard repeatedly because customers will get tired of waiting for you to restock and move to a competitor.
You can remove the out-of-stock products from your site to avoid disappointment or keep them and add a call-to-action button that enables customers to get back-in-stock alerts. While working on your inventory, you can keep your customer engaged and warm with apps like Back in Stock, which helps you send notifications as soon as the products they’re interested in are back in store.
How Do I Maintain Customer Communication During Shipping?
A sign of an inefficient shipping strategy is the lack of post-purchase communication. People expect constant information about their orders and appreciate transparency when delays occur.
Use the time between purchase and delivery to eliminate buyer’s remorse and build trust with your new and recurring customers. Pick the most suitable communication solutions from the Shopify App Store to create post-purchase email flows and enable delivery status notifications via SMS to keep customers informed about their orders.
Proactivity and handling problems professionally will always positively impact a situation that could otherwise end with complaints, returns, low customer satisfaction, and, finally, churn.
Shopify Shipping Key Takeaways
Now that you know more about setting up and optimizing Shopify Shipping, you’re one step closer to simplifying your shipping process and setting it for success.
Here are some takeaways that will help you design your shipping process with confidence:
- Use Shopify Shipping to buy discounted shipping labels and access better shipping rates that are otherwise only accessible to large Shopify merchants.
- Be smart about your packaging choices and opt for those that bring significant savings and are sturdy enough for problem-free delivery.
- Use an address validation tool to minimize failed deliveries and returns and to create a smoother checkout process for your customers.
- Have a simple, standardized return policy that potential and existing customers can easily find on your site and show you’re a trustworthy store.
- Be proactive and transparent in your post-purchase communication, letting customers know about shipping status and delays and reassuring them you’re doing everything to deliver their order as soon as possible.
Shopify Shipping helps you ensure everything in your shipping process runs smoothly, from filling out delivery information at checkout to fulfilling return requests.
To supercharge Shopify Shipping, and add valuable functionalities to your platform, check out and test these two Shopify apps: Address Validator and Rich Returns.
Feeling overwhelmed by the number of failed deliveries and the rising cost associated with returns, delays, and customer complaints?
Want to offer a positive customer experience even when you receive a return request and transform it into a product exchange that keeps sales revenue high?
