Operating an e-commerce business involves many moving parts, with shipping being one of the most critical.
For most stores, shipping costs can make up 5% to 15% of the product price. Go too cheap, and you risk delayed deliveries. Go too fast, and the costs might scare away your customers.
That’s where Shopify’s built-in Shipping tool comes in. It helps store owners like you streamline the process and access discounted rates, all while keeping your customers happy with clear, fast delivery options.
In this article, we’ll break down Shopify shipping rates and show you how to set them up. Let’s dive in!
Understanding Shopify Shipping and Its Benefits
Think of Shopify Shipping as your behind-the-scenes logistics helper. It connects your store to top carriers like USPS, UPS, FedEx, and DHL.
You don’t need to sign up for extra accounts or juggle multiple platforms — everything is already integrated inside your Shopify admin.
The real perk? Discounted shipping rates. These are often significantly lower than retail prices.
Plus, you can print shipping labels and packing slips, manage everything in one place, and automatically provide tracking numbers to your customers.
Besides, if you’re on the Grow, Advanced, or Plus plan with Shopify Payments activated, you automatically get up to $200 USD in shipping insurance on eligible labels. This also applies to Managed Markets orders.
No stress. No jumping between apps.
Types of Shipping Rates You Can Set Up in Shopify
Shopify offers a few ways to configure shipping rates, and while it might feel like a maze at first, it’s actually pretty manageable. Here’s a breakdown of your main options:
Free Shipping
Let’s be honest: everyone loves free shipping. Around 66% of online shoppers expect it, and offering it could be the final nudge someone needs to complete a purchase.
Picture this: you’re shopping for something priced at $100. Just as you’re about to check out, you see a $10 shipping fee. Suddenly, you hesitate. You start wondering if it’s really worth it. Most of your customers feel that, too.
To offer free shipping in your Shopify store, just include the shipping cost in your product price.
It keeps things simple and your checkout page cleaner. Customers feel like they’re getting a deal, and you’re still covering your costs.
Flat-Rate Shipping
If your products are all about the same size and weight, like makeup, candles, or handmade goods, flat-rate shipping can be a game-changer.
You set a consistent fee across all similar orders. It keeps things simple and transparent for customers.
Major U.S. carriers like USPS, UPS, and FedEx offer flat-rate envelopes and boxes you can use, and Shopify makes it easy to match those rates.
What’s more, when one carrier raises its rates, you can adjust yours easily without disrupting your customer experience.
Carrier-Calculated Shipping Rates
Using carrier-calculated rates means showing real-time shipping costs at checkout, based on the customer’s address and your package’s dimensions and weight. Shopify pulls these rates directly from carriers like USPS, UPS, and FedEx.
If your products vary in size or you ship internationally, this keeps pricing fair and accurate.
It’s available on Shopify Advanced and Plus plans. Grow users can access it by paying extra or choosing annual billing.
Just a heads-up: rates can change with surcharges, especially for delivering to remote areas. Before going live, test the setup with your full product range and different shipping zones to make sure everything looks right.
Local Delivery Rates
If you run a local business like a flower shop, bakery, or grocery store, local delivery can be a smart way to serve nearby customers quickly. Think same-day drop-offs within a few kilometers.
For example, you might offer to deliver flower bouquets within 5 km in under an hour.
To do that, you’ll need to cover delivery costs, whether you’re using your own drivers or a third-party service. Most stores pass this fee on to the customer.
Shopify lets you set up local delivery by defining your delivery area, setting minimum order values, and adding custom delivery fees. You can also connect with local delivery apps to track orders in real time.
It’s a flexible option for stores that want to offer fast, local service while keeping everything organized.
In-Store Pickup (Click & Collect) Options
In-store pickup is perfect for local customers who prefer to swing by and grab their orders. Maybe they’re heading home from work or just want a reason to get out of the house (we get it).
Shopify lets you offer pickup times at checkout, so customers can choose what works best for them. You just need to have the order ready when they arrive.
Since there’s no shipping involved, you don’t charge a delivery fee. That’s a big win for customers. Statistics show that 49% of shoppers choose click-and-collect specifically to avoid shipping costs (BusinessDasher, 2024).
It’s also a great chance to bring people into your store. Once they’re there, you can introduce them to new products or invite them to join your loyalty program (your secret weapon for repeat business).
Below is a table for a quick recap:
| Shipping Rate Type | Pros | Cons |
| Free Shipping | Boosts conversions, meets customer expectations, easy to promote | May reduce profit margins if not priced carefully |
| Flat Rate Shipping | Simple, predictable pricing; easy for similar-size products | Not ideal for mixed product sizes or international orders |
| Carrier-Calculated Shipping | Accurate pricing, great for varied or international orders | Requires setup and testing; may have surcharges; not available on all plans |
| Local Delivery Rates | Fast local service; supports same-day delivery; customizable | Requires drivers or delivery partners; added logistics to manage |
| In-Store Pickup (Click & Collect) | No shipping fee; encourages in-store visits; drives loyalty | Limited to nearby customers; requires prep and scheduling |
Understanding Factors That Influence Your Shipping Costs
Package Weight & Dimensions
The size and weight of your package play a huge role in determining shipping costs.
Take wallpaper, for example. You might roll it neatly, but if the final package ends up over 3 meters long, expect a bill that makes you blink twice. Carriers charge extra for oversized packages, even if they’re light.
Pro Tips:
- To save money, try to pack products as compactly as possible. Avoid bulky, heavy materials unless absolutely necessary. Lightweight cushioning like bubble wrap or foam can get the job done without tipping the scale.
- Also, double-check your numbers. Entering incorrect dimensions or misplacing a decimal point can lead to incorrect rates, shipping errors, or even delayed deliveries. Accuracy matters.
Destination & Distance
Where your package is going matters just as much as what’s inside.
Shipping costs increase with distance. In the U.S., USPS uses a zone-based system with 9 shipping zones, and the farther your package travels from its origin, the more you’ll pay. International orders cost even more, due to customs, taxes, and longer delivery times.
If you ship nationwide or globally, think strategically about where your packages are fulfilled.
Using multiple warehouses or third-party logistics providers (3PLs) can help you ship from a location closer to the customer, cutting down both cost and delivery time.
The farther the destination, the smarter your shipping setup needs to be.
Carrier Services & Speed
Speed comes at a price. Whether you ship with USPS, UPS, FedEx, or another carrier, faster shipping means higher costs.
According to Invesp, 61% of online shoppers want same-day delivery. But let’s be real — that’s not always doable or profitable.
For high-ticket items, fast delivery helps build trust. But for lower-cost products, same-day or overnight shipping could cost more than the item itself. (It’s like taking a Rolls-Royce across the country just to grab a $5 burger.)
Pro Tip:
- A smart strategy is to offer both economy and expedited options. That way, customers can choose what fits their needs, and you stay in control of your shipping costs.
How to set up shipping rates on Shopify?
Setting up the shipping rates with Shopify is simple. Here, we’ll walk you through the steps to set up conditional free shipping, e.g., free shipping on all orders above $99.
Access Shipping Settings
Go to your Shopify admin dashboard, then click on “Settings” at the bottom left corner, and then on “Shipping and delivery.”
Add Markets & Shipping Zones
First of all, create a market and then a shipping zone to define the area you will be shipping your products to. You may assign countries and areas to the shipping zone.
If you only ship to the lower 48 states, you should make sure to exclude Alaska, Hawaii, and many other U.S. territories.
Define Shipping Rates
In the “Shipping” section, click on “General shipping rates” to “Add rate” for your shipping zone. Next, click “Add conditional pricing” and set a flat rate for orders under $99. Fill in “$98.99” as the “Maximum price” and then, create another rate for orders above $99 by filling in “99” as the “Minimum price.”
Alternatively, you may go to “Discounts” in your Shopify admin to create a discount code for your customers. In this way, the shipping costs will still be reflected at checkout while your customers get the idea of the value.
Pro Tip: If you’d like to set up complex shipping rules, you’d better use a Shopify Shipping Rules app.
Test Shipping Rate Setup
Make sure that shipping and delivery methods work well in your store. Test the shipping setup thoroughly to ensure customers receive what they expect.
Save Changes
Now you are done, don’t forget to save the change by clicking on the “Apply to store” option, ensuring your shipping policy page is clear and up-to-date.
What’s Next?
If you set up an online shop using Shopify, then Shopify Shipping is a great asset in many ways. The benefits are manifold.
You now have various shipping alternatives. Ship with various providers at rates that suit your business. Additionally, Shopify helps you sell items effectively by simplifying the process of calculating shipping rates, including flat rate and international orders.
FAQ About Shopify Shipping Rates
Shopify Shipping services and applications come with all paid Shopify plans. There are no extra charges. Sellers can include shipping features on any plan tier. Understanding shipping costs is crucial for making a confident purchase decision, and there are no extra fees for these features.
In most Shopify stores, the customer typically pays for shipping at checkout. The cost is added to their order total based on the shipping method they choose.
However, store owners can also choose to offer free shipping as a promotion or pricing strategy. In that case, the store absorbs the shipping cost, often by including it in the product price.
It’s up to each merchant to decide how they want to handle shipping — charge it separately, offer flat rates, or include it in the product price to make it feel “free” to the customer.
Shopify lets you calculate shipping using real-time carrier rates, flat fees, free shipping (built into product prices), or custom rules for local delivery and in-store pickup. It all depends on how you set up your store.
To get accurate rates, it’s important to enter the correct package dimensions, weight, shipping origin, and destination in your Shopify settings. You can also use Shopify’s shipping calculator or connect your own carrier accounts for more control.
Yes, merchants can choose the shipping method option to ship their products on their own. Merchants can set their preferred carrier’s shipping rates or negotiate independent shipping. They can also integrate with third-party shipping solutions for fulfillment and shipping to efficiently ship orders.
Note: This blog was originally written in English and translated using an automated tool to make the content accessible to a global audience. We believe in sharing valuable insights with everyone and apologize for any inaccuracies. If you spot any errors, please feel free to contact us for corrections. Your feedback helps us improve and ensures the content’s value is fully realized.
Zero Tan
Content Specialist
As an eCommerce content creator, I aim to share insights, trends, and strategies that may help you navigate the digital marketplace more effectively. My content is designed to provide practical value and inspiration, supporting your business growth and helping you stay informed about industry developments.
