Shopify Shipping: Setup, Alternatives, Tips & Tricks

How to Set up Shopify Shipping should be planned from pickup to final order fulfillment. As such, this blog covers all essential requirements while considering the tips and tricks that can make or break a business, as customers prefer to avoid paying for shipping. Shopify Shipping is not the only shipping service that Shopify supports. Integrating with third-party apps to streamline the fulfillment process, reduce shipping costs, and register a better customer experience is possible.  

Shopify shipping has limited features when it comes to automating tax calculations. However, we always have the option to integrate with third-party taxation apps to automate the tax calculations and save precious time and extra money in taxes that you might incur through Shopify shipping if you do not use the third-party apps. You can use tax-specific apps like Quaderno or Taxometo for specific tax requirements or other available fulfillment services or shipping apps for many requirements. A bundle of opportunities awaits you through Shopify Shipping, which we will bring on the stage through this blog post. 

So, without any adieu, let’s get started!

Shopify Shipping: Setup, Tips and Tricks

How to set up Shopify shipping can be as simple as setting up shipping rates and shipping zones, adding a collection of products through a profile that shares the same shipping rates, printing shipping labels, packaging, pasting Shopify shipping labels, and dispatching the packaged product to your mailbox from where your courier service can collect them and dispatch to the address that you mention.  Business plans to offer free shipping on shopify, but it requires efforts to master how to set shipping rates on shopify. You can include your shipping cost in the product price, partially bear the shipping cost through comprising on profit margin, or opt for free shipping minimums.

Shopify shipping is an excellent option if you are starting your business. However, remember it has some cons, like lack of handling taxation and duties other than some options for domestic selling. Shopify shipping cannot handle international taxation, so what can you do? We will look at that a little later. The steps, however, are as follows. Please consider this blog to understand the service rather than a step-by-step procedure. While the step-by-step process might vary, you will always understand those steps easily and cover them if you read through our blog. 

We will have the details of Shopify shipping steps. However, for larger businesses unwilling to run their warehouses and preferring the Delivered Duty unpaid model, SFN is a good option. It can save millions of dollars. Moreover, SFN is better for domestic businesses. For international companies, you should opt for third-party apps, as offering through DDU can lead to a lower conversion rate for businesses.  

• When should you choose Shopify Shipping, SFN, or a third-party shipping service, and what other options are available?

We advise you to opt for Shopify shipping as a small business. Never worry about any other option if you have limited product selling requirements. Pack in the best boxes with safety features, add a thank you note, pack in lightweight and small sizes, print the bulk label from Shopify admin, and paste it on the products. You will not be required to take the packaged products to the carrier service you choose, as they will pick them up from your inventory address. As a small business owner, your shop can be your inventory, or you can sell it from your house. But what if we have thousands of parcels? They can provide discounted rates if we opt for the Shopify Fulfillment service. Also, it’s impossible for a large business unwilling to have its shipping sale ship thousands of parcels within a record deadline. You will require a Shopify fulfillment network, a similar fulfillment service, and the various 3PL services available through third-party options. The third-party apps can provide the free shipping discount code shopify if you subscribe to their services.  

• An Effective Ecommerce Shipping Strategy

You should have your shopify shipping policy well curated with a shopify shipping policy template, including unique options like a return policy explaining how shopify shipping works. The DDU and the DDP policies, as well as international Shipping policies, should also be included. You are not required legally to explain the shipping rates you are charging, but to avoid frequent customer inquiries and keep your business transparent, have a policy that explains your shipping strategies clearly in easy words and standard terms. Some products will cost more in specific locations, and sometimes, you need to mention shipping is not available for selected addresses, and your policy must mention the zone-wise rates you are charging through your business. If you opt for the SFN and hence DDU, then let your customers know that they need to pay extra to incur taxes and duties on delivery of the products; in general, this will be collected by the carrier services. Hence, explain through policy how the carrier service you have opted for will be charged to your customers. Remember, well-defined policies can help you make your business transparent, improve brand visibility, and improve conversion rates. You will also end up registering the most minor customer inquiries. Also, mention if there is any Shopify free shipping coupon that you can offer. 

Plan how you can reduce shipping charges

Do the customer segmentation and relate products to those segments. Research on the internet and relevant blogs on how different customer segments can wait more days for shipping. Generally, a male customer will only like to stay as long as a female customer, who can wait longer if you charge less. Research how students and various professionals or homemakers react to reduced shipping rates and delivery time. Opt for the best shipping apps for Shopify that can offer discounts. However, you will already register for discount shipping rates through Shopify Shipping and Shopify Fulfillment Network. 

• Deciding the shipping rates and methods: How to Offer Free Shipping

You can opt for a flat shipping rate or through your shipping rate method, regardless of the weight, price, destination, or quantity. However, you can have more control over the shipping rates by setting them based on weight and cost. You can also set different shipping rates for other zones. Or you can opt for the carrier service-based shipping rates that are calculated automatically based on the product, which is a more accurate option. You can also opt for third-party shipping apps that are part of the shipping fulfillment network. In a nutshell, the options are like:

1. Flat rate option for simplicity
2. Rates based on weight and pricing for more control
3. Rates based on carrier services for more accuracy
4. Rates are based on third-party apps for more advanced features.

Note: You can offer customers free shipping only through a proper e-commerce business strategy related to something other than your business’s shipping department. If you have a considerable profit margin, you are a much better option than those who don’t. A medical shop, an instant, and a restaurant are better positioned than a grocery store as they have better profit margins. Think about all these while you work on How to set up Shopify shipping, and look for alternatives.

• Calculating E-commerce shipping costs

You can leave this headache to the carrier services or the third party; however, if you are a small business handling the shopping or a large company with your warehouse handling shipping on your own, you will require an E-Commerce business strategy. We have already discussed that; just follow that and do ample research to find out how your business can offer customers free or discounted shipping rates. Customers love not paying for the shipping, and your conversion rate will register a record-breaking improvement if you present free or discounted shipping rates for your products through options like free shipping discount code shopify. 

• Options with Packaging

Packaging is a vital weapon with you as a business. Customers love packages that look elegant, and businesses love small and lightweight packaging as they cost less. You can see local shops providing their packaging services, and considerable local shops have tracking services. Still, as a startup, you might cover packaging but require technologies like tracking features. However, with Shopify, you can print shipping labels and paste them over the packaging of your products. There are different kinds of labels; you can print them all and paste them into different packaging sections. The carrier services offer the tracking number; you must mention that to the customers. You can have a page on your website where customers can track the shipping status of the products. Remember, good packaging service and technology like tracking service can help you serve your customers better, and you will end up with better conversion rates and more profit by the end of your financial cycle.  

• An effective way of Labeling and barcoding your products must be before delivering them to SFN

While we have recommended using the SFN, we are clarifying the labeling requirements for both the SFN and the Shopify Shipping and third-party apps. They all work similarly. All options allow printing shipping labels through a shopify shipping label printer or any such as Abel printer for shopify, which may be shopify shipping, SFN, carrier services, or third-party apps. Use the best printers and get them printed out. Finally, paste it on the packaged product, and that’s it. Your product is good to go. While SFN would require labeling and barcoding, some fulfilling services and third-party shipping apps will provide you with labeling and packaging services at a specific cost. You can search on the internet for how to barcode a product and label it on Shopify. So, you incur some extra fees if you use a third-party service for labeling and packaging. 

Recommendation: If you have limited packages, label and barcode and package them yourself, or use a third-party service if you are a large business with a good profit margin.  

Note: The shipping Labels are not free; the cost is the postage charges you pay for the shipping. Shopify leverages businesses with cheaper rates through high-volume exchanges with carrier services like DHL, USPS, UPS, and FedEx. 

• Opt for insurance. Is it required if you select SFN?

While Shopify Shipping services provide free insurance until coverage is in the $200s, costlier products will require you to buy insurance at checkout. Remember this trick, whether it is the SFN, Shopify Shipping, third-party apps, or any other fulfillment services. They all provide insurance up to a product cost-based limit, and otherwise, customers are required to buy insurance at the time of checkout. 

Note: You require adding third-party shipping apps to Shopify Shipping, which will offer customers options for purchasing insurance. While it’s free for smaller costs, it will cost you for higher-priced products. Remember this, when you look for How to set up Shopify shipping^. 

• How do we provide tracking options to customers when we select SFN or any other fulfillment service?

Remember to provide the carrier services with a barcoded product with proper labeling. They will forward you a receipt with a tracking number. You must mail the customers this tracking number, and your website should have a page where the customers can track the shipping service status through the tracking number. 

Note: The carrier services provide the tracking number. However, if you opt for self-delivery, you can opt for a manual tracking service through a spreadsheet and a webpage handled manually, or you can opt for a third-party app that provides the tracking service. 

• Taxation and Duties

While shopify shipping service allows you to collect taxes and duties for domestic shipping, it does not allow such services for international shipping. You can enter all the tax details from the Tax and Duties section in the settings section. We need to brief you on the details of taxes here. In the Global settings section, find the option to charge taxes on the shipping rates and enable it. When you think of How to set up Shopify shipping, you must include this step. Click on Save. Different US states have different tax rates. You are required to enter the sales tax number and nothing else. 

Note 1: However, some states require exceptions, which you can mention in the Shopify Taxes and Duties section.

Note 2: SFN does not provide tax-related services for domestic or international shipping. It supports DDU, meaning delivery duty is unpaid and does not collect taxes. The taxes are covered by the carrier services, which the SFN selects so that they can offer businesses the most discounted rates.   

• Advantages of fulfillment warehouse like SFN

The advantages of a fulfillment warehouse like SFN are as follows:

1. It ensures a lower delivery time
2. It reduces shipping cost
3. It provides better scalability and also ensures efficiency
4. It certainly improves the customer experience. 

Pros and Cons of Shopify Shipping

Various pros of Shopify Shipping are as follows:

1. Centralized management of entire shipping services
2. Multiple options for shipping rates ultimately reduce the cost
3. Domestic tax and duties collection support 
4. Allows creation of shipping profiles for adding rates for various products
5. Option for creating multiple shipping zones through zip codes and delivery circles. 
6. Option to integrate with third-party services for saving time and advanced functionalities.

Various cons of the Shopify Shipping:

1. There needs to be support for tax collections for international shipping.
2. Limited functionalities as compared to third-party shipping apps. 
3. Shopify Shipping is not available with the free plans.

Pros and Cons of Shopify Fulfilment Network

Various Pros of the SFN are like:

1. You do not require worrying about pickup and delivery.
2. You are provided a tracking number that SFN gets from the carrier services it integrates with, like USPS, DHL, UPS, and FedEx.
3. SFN provides centralized management of all shipping process-related worries.

Various Cons of the SFN are like:

1. It is not available with the free plans
2. It operates on DDU policy, which stands for delivery duty unpaid. Hence, it does not support the collection of taxes and duties for domestic or international shipping.

Best Shopify Shipping Fulfilment Service Based on Requirements

It depends upon your specific requirements. Below is a breakdown:

• ShipBob: considered best regarding storage, scalability, and order fulfillment.

• Saltbox: This is best for handling some fulfillment in-house, though it requires on-demand services, space, and labor.
• ShipHero: This is best for businesses shifting from in-house fulfillment to a 3PL.
• Red Stag Fulfillment: This is best for heavy, oversized, valuable, or fragile items.
• ShipNetwork: best for businesses requiring high scalability.
• ShipMonk: best for subscription box management as well as crowdfunding fulfillment.
• Amazon FBA (Fulfillment by Amazon): best for the merchants who sell on Amazon.
• Flexport: serves as fulfillment on top marketplaces such as Amazon, eBay, and Walmart.

Where Can third-party Apps Help when we choose SFN?

Third-party apps can help you through advanced features and functionalities that they will add to your shipping department. Either it is SFN integration apps that are designed to connect your Shopify Store to various SFN providers, as mentioned above, or the inventory management apps that help you manage inventories across multiple locations by synchronizing the inventory data between your store and the SFN warehouses, both can help you immensely. Further shipping and fulfillment apps can help you automate the routing, labeling, and tracking of your order fulfillment process. Moreover, the analytic and reporting apps can help you gain valuable insights from your fulfillment process data collected as your business processes the orders. These third-party apps can help you attain comfort while handling shipping for your E-commerce business. You should also learn how to integrate these third-party apps with the Shopify store, apart from How to set up Shopify shipping^. 

Conclusion

In conclusion, mastering Shopify shipping involves strategic planning, integration with third-party apps for enhanced functionality, and a clear shipping policy to ensure transparency and customer satisfaction. By understanding the nuances of taxation, packaging, labeling, and shipping rates, businesses can optimize their shipping strategies on Shopify, offering a seamless experience that delights customers and drives conversion rates. APPWRK provides expert guidance and solutions to streamline your Shopify shipping processes, helping you achieve efficiency and cost-effectiveness in your e-commerce operations. Ready to optimize your Shopify shipping? Contact us today to learn how we can help!

E-commerce shipping FAQ