How Does Shopify Shipping Work?
If you operate an online store, you’re familiar with the everyday challenge of printing postage and shipping your packages on time. Because managing logistics is needlessly complicated, I often advise merchants to integrate full shipping software into their shopping cart system. Using a shipping software can help streamline your fulfillment process and prevent headaches caused by incorrect postage.
In the past, Shopify customers had to look elsewhere for shipping support, but Shopify recently made significant improvements to their shipping features. In fact, Shopify has rolled out an entirely new shipping system, Shopify Shipping, to help you simplify fulfillment.
Shopify Shipping is a built-in shipping suite that gives merchants access to calculated rates through USPS, UPS, and DHL. With Shopify Shipping, you can process orders and print shipping labels in bulk without worrying about a third-party integration. What’s more, Shopify has made arrangements with major shipping carriers that allow you to save on shipping costs.
Unfortunately, there are a few bugs in the works. Most importantly, while you (the merchant) can view real-time shipping rates, your customers cannot. In order to let customers view real-time rates, you’ll have to pay for an add-on or subscribe to Shopify’s Advanced plan.
Nevertheless, Shopify Shipping is worth considering. Keep reading to learn more about Shopify Shipping and how you can implement it in your business.
Table of Contents
Setting Up Shopify Shipping
Because shipping features are now included in every Shopify platform, implementing Shopify Shipping is a breeze.
You can find Shopify shipping options in your admin by navigating to “Settings” and then clicking “Shipping.” Or, to make things simpler, you can click this link to your Shopify admin.
This page allows you to connect with shipping carriers, set up shipping zones, and add dropshipping services.
In order for Shopify Shipping to really work for your business, you’ll have to make sure you have listed dimensions and weights for all of your products and product variations.
Once you have set up your carriers and double checked your products, you can start fulfilling orders. Here’s what your order fulfillment page will look like:
You’ll notice several shipping options listed below the product information. You can choose to leave your customers’ selected shipping speed or upgrade them to a faster or cheaper service.
You should note that while you are able to select from a wide range of shipping speeds, your customers will not be presented with these options. Rather, customers will see only the flat or calculated shipping rates that you manually set up in your Shopify admin. In order to display real-time calculated rates, you’ll either have to pay for the Advanced Shopify plan or purchase an add-on for $20/month.
Shopify Shipping doesn’t offer the most robust shipping features. However, their shipping suite should fit the needs of most small businesses.
Here are a few of the features you can find already built in:
- Integrations With Major Carriers: Get real-time shipping rates from DHL, USPS, and UPS.
- Bulk Order Fulfillment: Set up shipping rules to process your orders in batches. Purchase shipping labels right in your admin.
- Bulk Label Printing: Print multiple shipping labels at a time. You can use a thermal printer or a regular desktop printer for these labels.
- Shipping Insurance: Insure your packages so if something goes wrong, you’ll be covered.
- Flat Rate Or Calculated Shipping Options: You can choose to set flat shipping rates or calculate rates based on weight and dimensions.
- Better Customer Service Features: Provide customers with real-time updates and tracking information.
- International Features: Shopify Shipping will identify your international orders and create customs information.
- Review & Update Shipping Selections: Review your customers’ shipping preferences. Upgrade customers to cheaper or faster services in your admin.
Considering the rate at which Shopify has built this shipping system, I wouldn’t be surprised to see more features continually added on in the coming year.
Reduced Shipping Rates
One of the main reasons to consider Shopify Shipping is the reduced shipping rates they offer through USPS, UPS, and DHL. All Shopify customers can benefit from this discount, but merchants on higher plans will save more on shipping.
Discounts are available on select services. You can look at Shopify Shipping’s full knowledgebase for in-depth information and example rates, or you can view a brief list of services below.
The USPS is an online seller’s best friend when it comes to shipping small, lightweight products. Their partnership with Shopify Shipping will let you save up to 46% on your shipments. View Shopify’s example rates for a more detailed breakdown.
Here are the USPS services you can access with Shopify Shipping:
- Domestic rates
- Priority mail
- Priority express mail
- First class package service
- International rates
- First class package international rates
- Priority mail international rates
Specializing in fast shipments and guaranteed delivery, UPS is often the best option for time-sensitive shipments. You can save up to 52% on UPS rates, depending on your Shopify plan. View the details in Shopify’s knowledge base.
Here are the UPS services you’ll have access to:
- Domestic rates
- UPS Next Day Air
- UPS Next Day Air Saver
- UPS Second Day Air
- UPS 3 Day Select
- UPS Ground Rates
- International rates
- UPS Worldwide Express Rates
- UPS Worldwide Saver rates
- UPS World Expedited rates
- UPS Standard to Canada rates
If you ship internationally, you should consider DHL for your fulfillment. Global logistics is what they do best. While I couldn’t find a percentage stating DHL’s discount, Shopify does say that DHL offers “Special DHL Express rates, exclusive to Shopify.” You can view a few examples of those special rates in that knowledge base I keep mentioning.
A Few Limitations
While Shopify Shipping supports most packages, it does not support all. Here’s a brief list of unsupported shipment types:
- Flat envelope thinner than ¼ inch
- Large package
- Total dimensions (total of the package’s length, width, and height) greater than 84 inches
- Irregular package
- Non-rectangular package
As you set up your online store, be sure to tour Shopify Shipping. You may find it fits all your needs, or you may discover you need a couple of add-ons to fill things out.
Either way, we’re happy to see Shopify make this improvement, and we hope to see continued progress in the future. In particular, we’d like real-time calculated rates to be available for every storefront. We’ll certainly be keeping an eye out for this feature!