5 Ways How to Calculate Shipping Costs on Shopify, Fixed!

How to calculate shipping costs on Shopify? Listing and selling the best possible products for your customers is only the first step in running a successful business. Company leaders also need to think about the shipping methods that they want to use so that they can deliver the items owed to clients too.

For people who already use the Shopify brand for everything from dropshipping to a shopping cart for their online store, it makes sense to consider Shopify shipping rates 2021. This fulfillment solution offers a reliable and cost effective way to deliver products to customers.

You may be interested in: Shopify Philippines: Set Up E-Commerce Website In No Time!

Does Shopify Have a Shipping Calculator for the Philippines?

Shopify Shipping is a built-in shipping suite that gives merchants tools to calculate real time shipping rates, purchase and print shipping labels and track shipments. Although Shopify Shipping is free for Shopify users on every pricing plan.

Shopify Shipping partners with USPS, UPS and DHL Express to offer discounted rates on many shipping services. These discounts are often around 20%-50%, but they range all the way up to 88%. 

Accessing these shipping Shopify carrier calculated shipping rates allows you to list real-time shipping calculations both on your order processing page and in your customers checkout. That lets you charge precise amounts for shipping, reducing the risk of underestimating your shipping expenses.

In addition, Shopify Shipping has many other features that can improve your order fulfillment. You can process orders and print shipping labels in bulk right from your Shopify admin. 

The International shipping tools can be used to create and print customs forms, and pass shipment tracking information along to your customers and you can pay for all your shipping costs on your monthly Shopify shipping rates Philippines subscription.

How Do You Know How Much to Charge for Shipping on Shopify?

Shopify shipping rates are what you charge your customer in addition to the cost of the products that they order. The cost of any shipping rates are added to a customer’s order at checkout. You can choose a variety of shipping rates and methods to appear as options for your customers, or keep it simple and provide a single option.

How to set up shipping rates on Shopify? When you create shipping rates, you can also specify any restrictions or rules around which shipping methods are available based on the contents of the customer’s cart. Calculated shipping rates are shipping costs that are provided by any shipping carriers or apps that you add to your store.

When a customer reaches checkout, their shopify shipping calculator on cart page information is sent to the shipping carrier or app, and they return what they should charge for shipping. The benefit of carrier calculated shipping rates is that you can pass on the exact cost of shipping an order directly to the customer.

Depending on your store’s Shopify subscription plan and location, there are certain shipping carriers you might be able to add directly to your shipping settings.

Shipping carriers can use any of the following when determining how much to charge for shipping:

• Shipping origin.
• Shipping destination.
• Weight of the shipment.
• Value of the shipment.
• Dimensions of the shipment box.
• Dimensional weight.
• Requested speed of delivery.

For example, suppose that a customer from Malaysia reaches the checkout with a 1 kg order. Your store is located in the Philippines and your default box size is 5″ x 7″ x 7″ weighing 0.375 kg. 

If you connect your Shopify account with the Philippines post then the Philippines Post calculates the possible shipping options for your customer based on the order criteria and provides them at checkout for the customer to choose from. You can check the shipping cost from this link too  https://www.shopify.com/toolbox/shipping/calculator.

How Do I Calculate Shipping Costs?

How to set shipping on Shopify? Maybe it’s different from Shopee, but here are the 5 best ways how to calculate the shipping cost for your Shopify:

Related: How Much Does Shopee Charge Sellers in the Philippines?

Weigh Your Products And Get Accurate Shipping Quotes

Before you start changing rates or meddling with the cost on Shopify, get a scale out and weigh each product. Take the weights and dimensions to a handful of local couriers and get an average quote for shipping.

You can also approach USPS, FedEx and other carriers to strike a deal or get a one-off price. Either way, make sure you know the exact shipping cost and how much the packaging costs.

Offer Free Shipping

Now that you know how much it costs to package and ship, you can choose a delivery option:

Taking the Hit Yourself

Option one is taking the hit of delivery costs yourself, like I originally did. You sell your products at the usual price and absorb the cost of shipping from your profits. This method will work if your products are very expensive or have a big profit margin. Expensive and luxury items often work well in this category.

Bumping to the Products Price

Option two is bumping up the price of your products to cover the cost of shipping. Although the product is now more expensive, the lure of ‘free shipping’ is a big psychological incentive to buy. It removes a little hesitation. Cons? Well, the customer might find the same product cheaper somewhere else.

Meet in the Middle

Meeting somewhere in the middle is the last option. Maybe you sell the t-shirt for ₱9 and swallow the ₱1 cost yourself. 

Set Your Own Shipping Rates

Although free shipping is a nice way to lure customers, setting a shipping rate is still standard practice online. On Shopify, you can’t set a shipping cost for each individual product, so you’ll have to use one of these three options:

Weight Based Shipping

In this case, you’ll charge a delivery cost based on the weight of the customer’s order. If their total cart weighs between 0-1kg, you might charge ₱10 shipping. If it’s between 1-2kg, you might charge ₱20. To set this up you’ll need to know the exact weight of your products.

Price Based Shipping

Using this option, you charge a delivery cost based on the total cost of the cart. If the customer spends between ₱0-₱20, you might charge ₱5 shipping. If they spend ₱20-₱50, you might charge ₱10.

Offer a Flat Rate

A third option is offering a simple Shopify flat rate shipping per item on all orders. This is a great option if all your products are similar size and weight. For example, if you just sell sunglasses, you probably don’t need to account for different weights.

Calculate Real Time Shipping Costs

This third option is the most advanced but probably the most accurate. Real time shipping automatically calculates the cost of shipping any product based on the customer’s location and delivery preferences.

It means every customer gets a completely accurate, up-to-the-minute shipping cost tailored to them. Shopify taps into FedEx or USPS prices to calculate the exact rate.

It’s great for you because you’ll never underestimate your shipping costs. It’s always exactly right. And it’s good for the customer, because they know they’re not getting ripped off by excessive shipping fees.

The only downside is you’ll need the advanced version of Shopify, which comes at an additional fee.

Let Someone Else Do the Shipping for You

Shopify has partnered with a handful of fulfillment services, including Amazon to help you take care of this. With this option, you’ll store your merchandise at one of Amazon’s warehouses and they’ll take care of the shipping for you. It will cost you a little extra but takes away all the hard work and guesswork.

Conclusion

Calculating the best shipping rates for your business has many benefits. One benefit is that it can give you a competitive advantage, allowing you to offer cheaper products or betting shipping rates. 

This in turn, generates more business and loyal customers. Getting to this stage requires calculating your shipping costs so you can choose an appropriate shipping method

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