Shopify Shipping billing
Shopify Shipping labels and label price adjustments are charged to the credit card that is on file for your Shopify account. All Shopify Shipping charges are billed in USD. If you are in Canada or Australia, then shipping label prices are shown in your local currency when you purchase the label, but the charge on your invoice is in USD.
Shipping label charges
Shipping label invoices are based on threshold billing. This means that as soon as you spend a certain amount on shipping labels within your billing cycle, you are invoiced and charged immediately. While you wait for the payment to be processed, you can continue to purchase labels until you reach 10% of your current threshold. After the invoice is processed, your threshold is reset.
If you don't reach this threshold within your billing cycle, then the shipping label charges are added to your monthly Shopify subscription bill.
For more information on how your specific account is billed for shipping labels, contact Shopify Support.
Find your shipping label charges
You can view your shipping label charges in the Bills section of your Billing page in your Shopify admin.
Shipping label refunds
Any refunds issued for shipping labels are added as a shipping label credit to your account. Credits are applied to future shipping label purchases.
Price adjustments
A shipping label price adjustment occurs when you purchase a shipping label and the carrier determines that you've provided inaccurate information that results in an incorrect rate. After you've shipped your order, the correct postage amount is verified by the shipping carrier. If you pay an incorrect amount to ship the order, then your carrier credits or debits your account for the difference. Your package might still be delivered when there is an adjustment.
Price adjustments are a standard industry practice and most service providers follow this standard, so it's important that your shipping labels are accurate.
In this section:
- Reasons for price adjustments
- Over maximum limit adjustments
- Avoiding adjustments
- Questions about adjustments
Reasons for price adjustments
If your carrier determines that your shipment needs a price adjustment, then the adjustment appears in the order's timeline. You'll receive a charge or credit to your Shopify account, which will appear on your next bill.
The following examples are possible reasons for price adjustments:
- The package weight specified on the label doesn't match the actual weight of shipment.
- The package dimensions specified on the label don't match the actual dimensions of shipment.
- A flat rate label is used with a weight-based rate box, or a weight-based rate label is used with a flat rate box.
- The specified mail class is incorrect (for example, the packaging weight is above the maximum threshold for that mail class).
- The content of your package doesn't fit mail class restrictions.
- The carrier charged a fee for preparing your shipment or non-customs documentation.
- The carrier changed the return to sender fees.
If you think that a price adjustment was wrongfully applied, then you can dispute the adjustment.
Over maximum limit adjustments
Carriers have maximum package sizes and weights. If a shipment is larger than the maximum size or weight, they can charge you substantial fees.
For example, if you are using UPS and your package weighs more than 150 pounds then you can be charged more than $875.00 USD for being over their weight limit. You can also be charged fees if the package dimensions exceed the carrier's limits. The UPS site has information about their Over Maximum Limits.
Avoiding adjustments
You can avoid overpaying or underpaying for your shipping labels by making sure that your shipping and product settings are accurate.
There are a few things you can do to make your shipping labels more accurate:
- Weigh the item that you're shipping and enter the weight into its product details page.
- Measure and weigh your packaging.
- Make sure that your shipping origin and shipping destination zones are correct.
- If your carrier uses dimensional rates, then configure your default package dimensions.
- Review your carrier's mail classes to make sure your shipment is classified properly.
Questions about adjustments
Shipping label price adjustments are determined by your carrier.
For any questions about shipping fee adjustments, you need to contact USPS or Canada Post directly to file a claim. For UPS and DHL, contact Shopify Shipping support.
Taxes on shipping labels
Each country has different tax rules for shipping labels.
United States
The United States doesn't charge taxes on shipping labels.
Canada
Canada Post charges taxes on domestic and international shipments. To learn the specific tax percentages, refer to Taxes on Canada Post products.
Australia
Australian domestic shipping labels are taxable, but international shipping labels aren't. However, you don't pay tax if you meet all of the following conditions:
- You have an Australian Business Number (ABN).
- You have registered for Australian GST.
- You have added your ABN to your Shopify account.