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Guide
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How to Configure Shopify Shipping Rates

Shipping configuration is one of the most critical aspects of running a Shopify store. Get it right to maximise conversions and maintain healthy margins.

Flex Commerce Team
Updated February 2024

Understanding Shipping Profiles

Shopify uses shipping profiles to determine which shipping rates apply to which products. By default, all products use the General shipping profile, but you can create custom profiles for products that require different shipping rules.

For example, you might have a separate profile for oversized items, fragile products, or items that ship from a different location.

When to Create Custom Profiles

  • Different shipping origins - Products shipped from different warehouses or suppliers
  • Size or weight variations - Oversized items that cost more to ship
  • Special handling - Fragile items or products requiring temperature control
  • Digital products - Items that do not require shipping (use "This is a digital product")
  • Dropshipped items - Products fulfilled by third parties with different rates

Creating a New Shipping Profile

  1. 1.Go to Settings → Shipping and delivery
  2. 2.Click Create new profile
  3. 3.Name your profile descriptively (e.g., "Oversized Items")
  4. 4.Add products or collections to this profile
  5. 5.Configure shipping zones and rates for this profile

Setting Up Shipping Zones

Shipping zones define the geographical areas where you ship products and what rates apply to each area. Most UK stores need at least three zones: UK, Europe, and Rest of World.

Recommended Zone Structure for UK Stores

Zone 1: United Kingdom

Your domestic zone. Include England, Scotland, Wales, and Northern Ireland. Consider whether to treat the Channel Islands and Isle of Man separately (they are outside the UK VAT area).

Typical rates: £3-5 standard, £6-8 express

Zone 2: Europe

Post-Brexit, EU shipping requires customs documentation. You may want separate zones for EU countries and non-EU European countries (Switzerland, Norway).

Typical rates: £8-15 standard, £15-25 express

Zone 3: Rest of World

A catch-all for other countries. Consider separate zones for USA, Canada, Australia if these are significant markets with different shipping costs.

Typical rates: £15-30 standard, £30-60 express

Creating a Shipping Zone

  1. 1.In your shipping profile, click Create zone
  2. 2.Name the zone (e.g., "United Kingdom")
  3. 3.Search for and select countries to include
  4. 4.Click Done
  5. 5.Add shipping rates to this zone

Pro Tip

Consider creating a separate zone for the Scottish Highlands and Islands if you use couriers that charge extra for these postcodes. You can add specific postcode prefixes to create more granular zones.

Creating Shipping Rates

Within each shipping zone, you can create multiple rates. Shopify supports several types of rates, each suited to different business needs.

Types of Shipping Rates

Flat Rate

A fixed price regardless of order contents. Simple for customers to understand but may not reflect actual shipping costs for varied orders.

Best for: Stores with similarly-sized products

Weight-Based Rates

Rates that change based on total order weight. Requires accurate product weights in your inventory.

Best for: Stores with products of varying weights

Price-Based Rates

Rates that change based on order subtotal. Often used for free shipping thresholds.

Best for: Stores wanting to incentivise higher order values

Carrier-Calculated Rates

Real-time rates fetched from carriers like Royal Mail, DPD, or DHL. Requires accurate product dimensions and weights.

Best for: Stores with varied products wanting accurate rates

Setting Up Weight-Based Rates

  1. 1.Click Add rate in your shipping zone
  2. 2.Select Set up your own rates
  3. 3.Enter a rate name (e.g., "Standard Delivery")
  4. 4.Set the price
  5. 5.Click Add conditions and select Based on item weight
  6. 6.Set minimum and maximum weights
  7. 7.Click Done and repeat for other weight brackets

Example Weight-Based Structure

Weight RangeRate
0 - 500g£3.50
500g - 1kg£4.50
1kg - 2kg£5.50
2kg+£7.50

Carrier-Calculated Rates

Carrier-calculated shipping shows customers real-time rates from your chosen carriers at checkout. This ensures you are charging accurate amounts and gives customers choice over delivery speed.

Requirements

  • Shopify plan: Available on Shopify plan and above, or with a monthly fee on Basic
  • Accurate product data: All products must have weights, and ideally dimensions
  • Shipping origin: Must be set correctly in your shipping settings

Available Carriers (UK)

Royal Mail

Integrated via Shopify Shipping

DPD

Via third-party app

DHL

Available for international

UPS

Integrated via Shopify Shipping

Setting Up Carrier-Calculated Rates

  1. 1.Ensure all products have accurate weights and dimensions
  2. 2.Go to Settings → Shipping and delivery
  3. 3.In your shipping profile, click Add rate
  4. 4.Select Use carrier or app to calculate rates
  5. 5.Choose your carrier and select services to offer
  6. 6.Optionally add a handling fee or markup

Pro Tip

Add a small handling fee (5-10%) to carrier-calculated rates to cover packaging materials and the time spent packing. This prevents shipping from eating into your margins.

Free Shipping Strategies

Free shipping is a powerful conversion driver. Research shows that unexpected shipping costs are the top reason for cart abandonment. However, "free" shipping still has a cost that needs to be absorbed somewhere.

Option 1: Free Shipping Over a Threshold

The most common approach. Offer free shipping on orders above a certain amount. This encourages customers to add more to their cart.

Setting Your Threshold

Set your threshold 20-30% above your average order value. This encourages customers to spend more without setting an unreachable target.

Example: If your average order is £40, set free shipping at £50-55.

Option 2: Build Shipping Into Prices

Increase product prices slightly and offer "free shipping" on everything. Works best when your products have healthy margins.

  • Eliminates cart abandonment from shipping shock
  • Simplifies the customer experience
  • ×May make prices seem higher than competitors
  • ×Difficult with international shipping (varying costs)

Option 3: Free Shipping for Members

Offer free shipping as a perk for loyalty program members or subscribers. This builds customer retention while limiting the cost.

Setting Up a Free Shipping Threshold

  1. 1.In your shipping zone, click Add rate
  2. 2.Name it "Free Shipping" and set price to £0
  3. 3.Click Add conditions and select Based on order price
  4. 4.Set minimum order value (e.g., £50)
  5. 5.Click Done
  6. 6.Keep your standard shipping rate for orders below the threshold

Local Delivery and Pickup

If you have a physical location, offering local delivery and click-and-collect can differentiate you from online-only competitors and reduce shipping costs.

Setting Up Local Pickup

  1. 1.Go to Settings → Shipping and delivery
  2. 2.Scroll to Local pickup and click Manage
  3. 3.Toggle on the locations where customers can collect
  4. 4.Add collection instructions and expected ready time

Setting Up Local Delivery

  1. 1.Go to Settings → Shipping and delivery
  2. 2.Scroll to Local delivery and click Manage
  3. 3.Enable local delivery for your location
  4. 4.Set your delivery area by postcode or radius
  5. 5.Set the delivery price (or free) and any minimum order requirements
  6. 6.Add delivery instructions for customers

Pro Tip

Offer free local delivery over a lower threshold than national free shipping. For example, free local delivery over £30, free national shipping over £50. This incentivises nearby customers to choose your store.

International Shipping

Shipping internationally from the UK involves additional considerations around customs, duties, and varying carrier costs. Getting this right prevents customer complaints and lost parcels.

Customs and Duties

Since Brexit, all shipments to the EU require customs documentation. You need to include HS codes (commodity codes) for your products and accurate values.

  • HS codes: Add to products in Shopify under Customs information
  • Country of origin: Required for all international shipments
  • Value declaration: Must accurately reflect sale price

DDP vs DDU Shipping

DDU (Delivered Duty Unpaid)

Customer pays any import duties on delivery. This is the default for most carriers.

  • ✓ Lower upfront costs for you
  • × Surprise fees for customers
  • × Risk of refused deliveries

DDP (Delivered Duty Paid)

You pay duties upfront. Customer receives package with no additional charges.

  • ✓ Better customer experience
  • ✓ Fewer support issues
  • × Higher shipping costs

EU IOSS (One-Stop Shop)

For goods under €150 to EU customers, registering for IOSS allows you to collect VAT at checkout and remit it through a single EU country. This means customers do not pay VAT on delivery.

Consider IOSS registration if you have significant EU sales volume. Apps like Zonos or Ship&co can help manage IOSS compliance.

Common Mistakes to Avoid

Missing Product Weights

Products without weights default to 0, which causes incorrect shipping calculations for weight-based rates.

Fix: Audit all products and add accurate weights. Export your products via CSV to identify any with missing weight data.

Overlapping Rate Conditions

If multiple rates could apply to an order, all matching rates are shown. This confuses customers.

Fix: Ensure weight or price ranges do not overlap. Use clear boundaries like 0-500g, 500g-1kg rather than 0-500g, 500g-1kg with separate "500g" rates.

Not Testing Checkout

After setting up shipping, always test checkout with different addresses and cart contents to verify rates appear correctly.

Fix: Use Shopify's Bogus Gateway for test orders, or place real orders and refund them.

Forgetting Handling Time

Delivery estimates should include your processing time, not just carrier transit time.

Fix: Set realistic processing times in Settings → Shipping. Under-promising and over-delivering builds customer trust.

Need Help With Shipping?

Our team can help you configure optimal shipping rates, integrate carriers, and set up automation to streamline your fulfilment process.