How Does Shipping Work on Shopify?

Table of Contents

1. Introduction
2. Setting Up Your Shipping Strategy
3. Dropshipping and Fulfillment Services
4. Choosing Shipping Carriers
5. Printing Shipping Labels
6. Managing Orders and Optimizing Routing
7. International Shipping and Customs
8. Local Pickup and Delivery Options
9. Tracking and Insurance
10. Summary
11. FAQ Section

Introduction

Imagine this: You've painstakingly crafted an online store, carefully curated your products, and are now ready to send them out into the world. But here's where the real challenge begins—shipping. According to a recent survey, over 60% of online shoppers abandon their carts due to high shipping costs and complicated processes. How can you ensure that your shipping methods don't drive your hard-won customers away? This is where Shopify Shipping steps in. Whether you're a seasoned eCommerce expert or a novice dipping your toes into the world of online selling, understanding how Shopify handles shipping can be a game-changer for your business. Today, we'll guide you through everything you need to know about shipping on Shopify—from setting up your shipping strategy to selecting carriers and managing orders—so you can keep your customers happy without breaking the bank.

Setting Up Your Shipping Strategy

Effective shipping starts with a solid strategy. Without a well-thought-out plan, you could end up overcharging your customers or diminishing your profit margins.

Determine Your Shipping Rates

One of the first steps is deciding how much to charge for shipping. Shopify allows you to choose between:

1. Free Shipping: Absorbing the cost yourself can increase conversions but might eat into your profits.
2. Flat Rate Shipping: Offers predictability for your customers but may not be the most cost-effective.
3. Carrier-Calculated Shipping: Provides real-time shipping rates at checkout based on the customer’s location, package weight, and dimensions.

Configure Shipping Zones

Shipping zones let you define specific areas where you want to ship your products. This is particularly useful if you have different costs associated with shipping domestically versus internationally. You can set up shipping zones by going to your Shopify dashboard and navigating to Settings > Shipping and Delivery.

Choose Packaging Options

The size and weight of your packaging significantly affect your shipping costs. Shopify allows you to save your default package sizes under the Packages section in the Shipping and Delivery tab. Ensure that your packaging is cost-efficient and durable enough to protect your products during transit.

Dropshipping and Fulfillment Services

For those who want to minimize the hassle of managing inventory, packaging, and shipping themselves, dropshipping and third-party fulfillment services come in handy.

What is Dropshipping?

With dropshipping, you don’t keep the products you sell in stock. Instead, you partner with suppliers who ship the products directly to your customers. Shopify integrates with several dropshipping apps like Oberlo and Spocket, making it easier to start a dropshipping business.

Third-Party Fulfillment Services

As your business grows, managing shipping internally may become overwhelming. Shopify Fulfillment Network (SFN) connects you with reliable third-party logistics providers (3PLs). These services handle storage, packaging, and shipping, allowing you to focus on scaling your business.

Choosing Shipping Carriers

Shopify partners with multiple carriers to provide a range of shipping options.

Major Carriers

• USPS: Best for smaller, lightweight packages. Offers affordable rates, especially for international shipping.
• UPS: Reliable for both domestic and international shipping. Good for heavier packages and offers premium services like time definite deliveries.
• DHL Express: Ideal for international shipping with fast delivery times.
• Canada Post: Cost-effective for shipments within Canada and valued for its vast delivery network.
• Sendle: An excellent option for businesses shipping within Australia, offering competitive rates.

Discounted Rates

One of the perks of using Shopify Shipping is access to discounted rates. Sellers in the U.S. can save up to 88% on USPS, UPS, and DHL Express shipping. Similarly, Canadian sellers get discounts with Canada Post, and Australian sellers benefit from cheaper rates with Sendle.

Printing Shipping Labels

Shipping labels are essential for your packages. Shopify makes it easy to print labels directly from your Shopify admin.

How to Print Labels

1. Access Orders: Navigate to the Orders section in your Shopify dashboard.
2. Select Orders: Choose the orders for which you want to create shipping labels.
3. Create Label: Click on Create shipping label, fill out the required details, and then select Print.

Shopify allows printing up to 100 labels at a time, simplifying bulk processing during peak seasons.

Label Printers

You can use a standard home printer or a dedicated label printer. Shopify supports several thermal label printers, which are more efficient for bulk printing tasks.

Managing Orders and Optimizing Routing

Efficient order management is crucial for timely deliveries and customer satisfaction.

Order Management

Shopify Shipping integrates directly into your Shopify dashboard, allowing you to manage all shipping tasks from one central location. This includes creating shipping labels, tracking orders, and notifying customers about their shipment status.

Optimizing Order Routing

For sellers with multiple storage locations, Shopify provides automated order routing. This option automatically selects the best warehouse based on the customer’s address, ensuring quicker and often cheaper shipping.

International Shipping and Customs

Selling internationally can boost your revenue, but it comes with its own set of complexities.

International Shipping Features

Shopify offers built-in tools to simplify international shipping, including customs forms and Shipping and Product records. Shopify Shipping also provides discounted international shipping rates, making it more affordable to reach a global audience.

Customs and Duties

When shipping internationally, your packages may be subject to customs duties and taxes. These additional costs are usually borne by the customer, but Shopify gives you the option to prepay these charges to enhance the customer experience.

Local Pickup and Delivery Options

If you manage a brick-and-mortar store or have a local customer base, local pickup and delivery can be an excellent addition to your shipping options.

Setting Up Local Pickup

Shopify allows you to offer a local pickup option during checkout. You can configure it in your Shopify admin under Settings > Shipping and delivery > Local pickup.

Local Delivery

For businesses that prefer delivering orders personally, Shopify provides the setup for local delivery with specific rates and conditions.

Tracking and Insurance

Providing tracking information to customers increases transparency and trust.

Package Tracking

Shopify Shipping includes real-time tracking for all major carriers. Customers receive automatic email notifications with tracking details, keeping them informed about their package status.

Shipping Insurance

To protect your shipments, Shopify Shipping includes insurance of up to $200 per label. You can also opt for additional insurance based on the value of your products.

Summary

Shipping is a pivotal aspect of eCommerce that can significantly impact customer satisfaction and business profitability. Shopify makes it remarkably easier by integrating all necessary shipping tools directly into its platform. From discounted rates with major carriers to built-in tracking and easy label printing, Shopify Shipping provides a comprehensive solution tailored for businesses of all sizes. Whether you're just starting with dropshipping, scaling up with third-party fulfillment, or navigating the complexities of international shipping, Shopify has you covered.

Key Takeaways:

1. Develop a Solid Shipping Strategy: Decide whether to offer free, flat-rate, or carrier-calculated shipping.
2. Leverage Shopify Integrations: Utilize Shopify Shipping and third-party apps for efficient management.
3. Utilize Discounted Rates: Take advantage of Shopify’s partnerships with major carriers to save on shipping costs.
4. Maintain Customer Satisfaction: Provide tracking information and reliable delivery services.
5. Consider Fulfillment Services: If your business grows too big to handle your own shipping, consider using fulfillment centers.

By mastering these aspects of Shopify Shipping, you can elevate your eCommerce business and ensure a seamless, cost-effective, and customer-pleasing shipping process.

FAQ Section

How does shipping work on Shopify?

Shopify provides an integrated shipping solution that includes discounted rates from major carriers, easy label printing, and tracking features. You can set up different shipping rates and options in your Shopify admin, making it easier to manage the shipping process from start to finish.

How much does Shopify Shipping cost?

Shopify Shipping is included with all Shopify plans, but you will pay for shipping labels based on package weight, dimensions, and destination. Shopify offers discounted rates, which can significantly reduce shipping costs compared to standard rates.

Who pays for shipping on Shopify?

Typically, customers pay for shipping unless you offer free shipping promotions. Shopify allows you to set up custom shipping rates, where you can either charge a flat rate, real-time carrier-calculated rates, or offer free shipping.

Is shipping cheaper through Shopify?

Yes, shipping can be cheaper through Shopify due to negotiated discounts of up to 88% with major carriers like USPS, UPS, and DHL. These discounts make it more affordable to ship both domestically and internationally.

By mastering the nuances of shipping on Shopify, you can transform a potential eCommerce headache into a streamlined operation, ensuring satisfied customers and smooth scalability.