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Calculated rates

If you're using Shopify Shipping, then you can display calculated shipping rates to your customers at checkout. Calculated shipping using USPS or Canada Post is included by default in your Shopify admin.

If you are on the Advanced Shopify Plan or higher, then you can use your custom credentials with USPS, Canada Post, UPS, or FedEx to display calculated rates at checkout.

Tip

If you want to see more educational videos and tutorials like this one, visit our video library.

Note

If your store is eligible for Shopify Shipping, then you can display calculated USPS or Canada Post rates at checkout by default regardless of your plan. You can then buy the discounted shipping label direct from your Shopify admin and print it at home.

How calculated rates work

Carriers typically have a wide range of shipping options, but your customers will be offered only those rates that are applicable to their order, based on:

  • the total weight of the order
  • your default shipment dimensions. These are used by your carrier to calculate shipping rates
  • whether they enter their Company name at checkout (this can make them eligible for business rates, which are generally lower than residential rates).

If you plan to offer calculated shipping for your products, make sure that you've entered accurate weights for each variant, either in your product detail pages or your product CSV file. If your weights are not accurate, then the calculated shipping costs will be incorrect.

Which carriers to use

When you first set up your Shopify store, you can choose from available carriers on your Shipping settings page:

You can add other carriers by installing their apps from the Shopify App Store.

Basic procedure for offering calculated shipping

The basic procedure for offering a calculated rate for calculated shipping looks like this:

  1. Register for and set up an account with your preferred carrier.
  2. Get your carrier account credentials.
  3. Activate the carrier service in Shopify.
  4. Make sure your shipping origin address is correct.
  5. Make sure your products have accurate weights.
  6. Add rates for this carrier to each of your applicable shipping zones.

Add a calculated shipping rate

To set up a calculated rate:

  1. In the Zones and rates section, find the shipping zone that you want to create the new rate for, and then click Edit:

    Add shipping rate carrier

  2. In the Calculated rates section, click Add rate:

    Add cc rate

  3. On the Add calculated rate dialog, select the carrier from the drop-down menu and check the services that you want to offer to your customers:

    Set up cc rate

  4. If you want to add a handling charge on top of the calculated rate, then enter an amount in either the Percentage or Flat fee field.

  5. When you're done, click Done.

  6. On the shipping zone's main page, click Save to save the calculated rate.

Adjusting calculated rates

You can adjust calculated shipping rates to mark up or discount the rates that your customers see at checkout. You might want to adjust calculated shipping rates if:

  • the rate is too high to attract customers
  • the rate is too low to cover your packaging and handling costs.

You can mark up calculated shipping rates by an additional flat fee or by a percentage of the total shipping rate. If you adjust a calculated shipping rate to include both an additional flat fee and a percentage markup, then the percentage is calculated before the flat fee is added. For example, a $5.00 rate with 50% markup and a $1.00 flat fee will cost the customer $8.50, not $9.00.

To adjust a calculated shipping rate:

  1. In the Zones and rates section, click Edit next to the shipping zone that you want to edit:

    Zone edit weight based

  2. In the Calculated rates section, click Edit beside the rate you want to adjust:

    Edit cc rate

  3. Adjust each rate by entering a fixed amount in the Flat fee field, or a percentage in the Percentage field:

    Adjust shipping cost
    If you want to offer your customers a discounted rate, then enter a negative percentage in the Percentage field. Since you will still be charged the full shipping cost that's calculated by the carrier, you might want to recover some of that cost by adding an equivalent amount to your product prices.

    Note

    If you add a percentage markup and a flat fee to a calculated rate, then the percentage markup is calculated before the flat fee is added.

  4. Click Done.

  5. On the shipping zone's main page, click Save.

Note

Your default shipment dimensions will also be used by your carrier to calculate shipping rates.

Deactivate a shipping carrier service

If you no longer want to use a particular carrier service (for example if your account with them has expired), you must make sure the service isn't offered to your customers at checkout:

  1. In the Custom carrier accounts section, click Manage carriers:

    Custom carrier accounts

  2. Click Remove carrier next to the carrier that you want to remove:

    Fedex deactive carrier

  3. In the dialog, click Remove to confirm the deactivation.

Note

If your account with the carrier is in good standing, you can reactivate the carrier at any time.

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