If you run an online business on a Shopify store, you need to keep an eye particularly on shipping costs besides delivering orders fast. Here Shopify shipping can prove to be handy.
You would want your customers to have a memorable experience of shopping once they checkout. From the time customers place their orders in your store to the time when their orders arrive at their doorstep, things need to be seamless, and that too with a reasonable shipping cost.
Imagine, you have spent many hours curating and running a perfect online store, only to find that customers are abandoning their carts when they see high shipping costs. You might lose a lot of business right away.
In this competitive eCommerce market, offering low shipping costs can make a lot of difference between a sale and a lost opportunity.
As a Shopify store owner, you can face the challenge of keeping shipping costs reasonable while keeping your business profitable. Luckily, with the right strategies, you can navigate this issue effectively with Shopify shipping rates.
This post will list the strategies to reduce Shopify shipping rates in Canada, using tools, and techniques that will benefit your store and your customers.
You’ll learn how to cut Shopify shipping expenses, make the most of the flat rate shipping, and navigate the intricacies of shipping fees.
You will also be equipped with actionable steps to optimize your shipping strategy and ensure your store stays competitive and profitable.
Setting up Your Shopify shipping
Once you set up your Shopify Shipping, it will make it easy for your eCommerce store to fulfill orders.
For online stores that are already using Shopify starting from dropshipping to a shopping cart, Shopify shipping will make sense to you. Shopify provides reliable and affordable shipping services to deliver orders timely to customers.
Shopify is associated with leading shipping carriers, including UPS, USPS, DHL, and others. By negotiating with these carriers Shopify can help you offer options such as overnight shipping, international shipping, and more.
How Does Shopify Shipping Work?
Besides the different aspects of running an online retail business, identifying the ideal shipping method to deliver orders to customers can be complicated.
Apart from ensuring that you dispatch and deliver orders to customers as quickly and seamlessly as possible, you also need to consider factors, including shipping costs, packing slips, and flexibility.
Generally, on other web-based platforms, eCommerce business owners try to find deals on their own with shipping carriers like FedEx, UPS, and DHL, by negotiating rates. Shopify shipping saves you from going through all those hassles.
The following are the key benefits of Shopify shipping:
- Different Options of Shipping: Because various shipping carriers are associated with Shopify shipping, you can get discounted offers and provide similar shipping choices to your customers.
These shipping options will help your store acquire new customers and also get repeat purchases by retaining existing customers.
- Convenience of Scheduling Pickups: You will have the convenience of scheduling pickups for free or at a low cost from multiple carriers. You will also get affordable shipping rates, depending on your shipping requirements.
You can use the “Scheduled” feature to manage order returns and other matters and provide more efficient services to your customers.
- Other Features: Apart from making things easier and more affordable for you while operating your store, Shopify shipping also comes up with different features. For instance, you can buy and print various Shopify shipping labels, and dispatch your orders fast.
The carriers that you find on Shopify shipping offer various options that will assist you in structuring your shipping process.
When fulfilling the orders, check the following steps on Shopify:
- Choose the orders you need to fulfill.
- Select a carrier, relevant mail classes, and print labels.
- Align the labels with the orders.
- Drop off the packages at your chosen carrier or schedule a pickup.
Besides creating shipping strategies for most carriers, you can also partner with a few of them. It can make the shipping process more flexible and affordable.
By making the most of Shopify shipping options, you can make the shopping experience of your customers memorable. As a result, they will likely stay with your brand longer.
Key Strategies to Save on Shopify Shipping Costs
High shipping costs can take away a major chunk of profit from your eCommerce business. However, by planning the right way, your store can compete with the retail giants and offer low shipping rates.
The rates on Shopify will likely vary for customers based on the location of your inventory, weight of the items, dimensions, prices, shipping destinations, and other factors.
Here are a few key strategies to save on Shopify shipping rates:
Cut Carrier Costs with Shopify Shipping
Shipping orders with the help of Shopify shipping can prove to be an effective strategy to reduce shipping costs, regardless of where you are shipping packages.
Through Shopify, it is possible to get pre-negotiated discounted rates as much as 88% from leading carriers, such as Canada Post, FedEx, UPS, DHL, and USPS.
Saving shipping costs include a standard subscription. You only have to log on to your Shopify dashboard, access the shipping features, and decide if you want to offer your customers free, flat-rate, or other low-cost shipping options at checkout.
Try Flat Rate Shipping Whenever Possible
When you choose flat rate shipping, the shipping cost is divided into weight, size, or destination, so the costs of sending orders become more predictable.
Flat rate shipping makes shipping a more affordable and hassle-free straightforward option that benefits you and your customers.
When customers get the option of flat-rate shipping, it reduces their uncertainty or indecisiveness at checkout and also lowers the chances of abandoning their shopping cart.
On Shopify, you can integrate the flat rate shipping option from leading carriers. The predetermined rates of these carriers will be for specific box sizes. This way, it will be easier to calculate and budget for shipping costs.
The flat rate is particularly useful if you ship similar-sized products regularly since you will know the exact shipping cost in advance.
You can implement flat shipping rates for any order for specific shipping zones, or orders within a certain price or weight range.
For example, you can set $5 as a domestic flat rate and $3 flat rate when an order value exceeds $50.
Calculate the Shipping Costs Accurately
To avoid bearing unnecessary shipping costs, it’s crucial to accurately calculate the shipping cost. Track all shipping-related expenses, including:
- Shipping boxes, packaging, tapes, labels, and stickers. Add the costs of materials required to securely package the orders, including the rolls of packing tape.
- Consider the manual efforts for sending orders. Factor in the time and effort to get a package ready and shipping.
- Add courier costs for collecting and delivery. Consider the courier service fees for collecting and delivering your orders.
- Export and import fees for international shipping. Stay updated on any fees or duties payable for international shipping.
Calculating shipping costs accurately is essential whether you charge customers the fees or offer free or low-cost shipping by including the costs into your product prices or absorbing the costs in your other business areas. For accurate calculations, you can use the Shopify shipping calculator.
Either way, you need to ensure that shipping costs unexpectedly drain out your profit margin.
Do Packaging Wisely
Order packaging plays a key role in shipping costs. If you choose lightweight and minimal packaging, along with maintaining product safety, it can save costs significantly.
Besides, carriers often provide free packaging materials, which can help lower your shipping costs.
Also, custom packaging can save you shipping costs in the long run, although they can be more expensive initially. Custom packaging ensures that your items fit perfectly, fulfills the measurements, and minimizes the risk of damage and returns.
Reduce Package Weight
Your package weight directly affects shipping costs. Applying strategies like using light packing materials and poly mailers for sturdy items can save you well on shipping.
On top of it, if you split large orders into multiple shipments, it will likely reduce shipping costs, depending on the pricing structure of a carrier.
- Pack Items in Corrugated Shipping Boxes
In eCommerce packaging, corrugated boxes are sturdier and lighter than regular cardboard boxes.
Corrugated boxes have tiny air-filled grooves between their layers, which increase their strength while minimizing weight.
- Use Poly Mailers
For unbreakable or non-fragile items like clothing, you can use poly mailers instead of boxes. Poly mailers are light, take up less space, and are affordable, which helps reduce packaging costs.
- Use Other Lightweight Packing Material
To use up the space in a box, you can use lightweight materials such as air pillows, bubble wrap, foam inserts, packing paper, or Versa Pak wadding rolls. Packing items tightly and minimizing weight will help lower shipping costs.
- Divide Orders into Several Shipments
Consider splitting large orders into multiple shipments. It helps distribute weight across multiple packages and possibly reduces shipping costs. Assess the overall costs before applying this strategy.
- Use a Postage Scale
A postage scale can help you accurately measure a package’s weight. It will also be useful to calculate costs.
Use DDP Shipping
Using Delivered Duties Paid (DDP) shipping can be a safer strategy for Shopify retailers who ship packages to overseas destinations.
When using DDP for delivering orders, the seller will be responsible for the product’s transportation until its delivery.
DDP makes customers feel more comfortable while purchasing outside of their home country as they don’t have to bear high shipping fees.
Use the Shopify ShippingChimp App
ShippingChimp for Shopify stores provides up to 53% reduced shipping costs when compared with National carriers such as Canada Post, FedEx, UPS etc. Along with reduced rates, ShippingChimp offers:
- Free Pick up
- Free insurance up to $100
- Zero volume commitment
If you are on Shopify, download the Shopify ShippingChimp App to enjoy the best shipping rates.
Set a Clear Shipping Policy
A clear shipping policy can clarify costs, estimated deliveries, the return process, and how customers should go ahead if they have an issue with their order.
Adding transparent policies can indirectly help reduce your shipping costs by minimizing the number of returns and improving customer satisfaction.
Stay Updated about Shipping Rates Change
Carriers change their shipping rates from time to time. Such changes will affect your overall shipping costs. You need to stay updated about any change in shipping rates to make adjustments before the new rates roll out.
Most carriers review their shipping rates annually and adjust them based on overhead costs such as fuel and labor. They generally implement the new rates in January but may also happen any other time of the year.
Closing Thoughts
Undoubtedly, the shipping costs can eat a major portion of your profit. To reduce shipping costs, you can use the strategies listed in this blog. This way, you can optimize your shipping costs for long-term savings, win new clients, and get repeat purchases from existing customers.
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