Shopify Shipping Rates Setup Guide
Flat rate, calculated carrier rates, or free shipping — how each shipping method works and affects your margin.
By Marginory teamContent reviewed
The three shipping rate methods
| Method | How it works | Risk |
|---|---|---|
| Flat rate | One fixed price for all orders (or by weight/price tier) | Losses on heavy/distant orders if set too low |
| Calculated rates | Real-time carrier pricing based on destination/weight | Low risk, but requires accurate package setup |
| Free shipping | No charge to buyer, cost folded into pricing | Requires accurate margin planning to avoid losses |
Free shipping thresholds
A common strategy: offer free shipping above a spending threshold to increase average order value, while charging shipping below it. This requires calculating the threshold carefully so the incentivized larger orders still remain profitable after the "free" shipping cost.
Setting up shipping zones
Shopify lets you define shipping zones (domestic, international regions) with different rates for each. Getting zone-specific rates right matters most for stores shipping internationally, where cost variance is largest.
Frequently Asked Questions
What shipping rate methods does Shopify support?
Flat rate (fixed price regardless of destination/weight), calculated carrier rates (real-time based on carrier and package specifics), and free shipping (often above an order threshold).
Which shipping method is best for a new store?
Flat rate is simplest to set up initially. As order volume and product weight variation grow, calculated rates reduce the risk of underpricing distant or heavy shipments.
Does Shopify charge extra for calculated shipping rates?
Access to real-time carrier calculated rates depends on your plan and any shipping app used — check current Shopify plan details, as this has varied by plan tier over time.