Shipping rate strategies

When setting up international shipping, try implementing different strategies such as:

• Free shipping. A common marketing practice and a great way to attract customers. To offset the cost, add conditions, like offering free shipping on orders over $150.
• Flat-rate shipping. If you sell products that are similar in size and weight, consider setting a flat rate within a specific shipping zone.
  This way, customers will know what shipping costs to expect, simplifying the order process.
• Carrier-calculated shipping. These are determined at the checkout by a third-party carrier, providing real-time pricing.
  It’s a great option for businesses and their customers. Note that it’s only available for certain carriers, such as USPS, DHL Express, and UPS in the United States, Canada Post, and Sendle in Australia.

Carriers

When choosing a carrier, carefully consider their rates. International shipping rates may vary depending on the type of service, destination, and package weight.

Some affordable postal carriers may not provide speedy delivery, so express services can come in handy – although more expensive. 

In addition to regular international delivery, express shipping options are available on Shopify. 

Check these express carriers and their delivery times:

• DHL Express Worldwide delivers overseas to over 220 countries and territories in one to three business days.
• USPS Priority Mail Express International ships to 190 countries. It takes approximately three to five business days and provides a money-back guarantee to specific destinations.
• Canada Post Xpresspost International is the carrier’s fastest shipping option, delivering to more than 70 countries in four to seven business days.

Take a look at other Shopify shipping carriers to find the right one for your online store. Each carrier has different international and domestic shipping costs, policies, and requirements.

Shipping cost

To make a profit, you have to calculate the shipping cost to price the products correctly and charge the right amount for delivery. By failing to do so, you can lose potential customers due to unreasonably high shipping costs or suffer lower profits.

If you’re in the US, use the Shopify Shipping Calculator to see how much it will cost to ship internationally.

Also, consider the following aspects to set a shipping cost that brings profit and is appealing to customers.

Packaging

Add the cost of packaging, including cushioning, to your total product price and reduce shipping costs by choosing inexpensive and lightweight materials.

Sourcing free packaging materials from shipping companies is a great way to save money. For example, if you use USPS as a business, you can order free shipping supplies.

Handling fee

Worldwide delivery requires more care and time. In addition to packaging costs, consider adding a handling fee.

For example, calculate the handling fee by determining the minimum hourly wage when preparing shipments ($12) and the time required to prepare and ship the order (eight minutes).

(Eight minutes / 60 minutes) x $12 = $1.60

Adding a handling fee is optional, but it’s a great way to increase profit and provide quality to customers.

Taxes and duties

Each country has different rules and regulations, so it’s vital to research beforehand and factor them into your pricing strategy.

Disclaimer: We strongly recommend consulting a licensed specialist to ensure everything is set up correctly.

By default, your customer may have to pay the destination country’s customs charges, duties, or taxes. This is called delivered duty unpaid (DDU). If you choose this route, clearly state this in your shipping policy.

Or, choose a customer-friendly approach and cover these costs with delivered duty paid (DDP). You’ll need to collect these upfront, which you can do by adding them to your shipping rates for zones where you ship internationally.

With Shopify Shipping, you can buy the appropriate shipping labels from them directly. They’ll also provide the correct customs forms and documentation required to fulfill international shipments.

1. Ship products to yourself

While Shopify has multiple carriers, they may not be available in your location, or their international parcel delivery costs might not be as competitive as you’d like.

In these cases, consider shipping products to yourself and arrange international shipping through different shipping carriers.

This option allows you to check the products before sending them to customers, so you can make sure they’re in good order.

2. Expand your market

With international shipping, slow and steady wins the race – start small, but aim high. After you successfully enter one international market, consider expanding to other countries.

Before doing so, research the following:

• Market demand
• Cultural nuances
• Customs regulations
• Carriers
• Shipping costs

Enter international markets independently or partner with other businesses who may help with providing useful information, saving you time and effort.

3. Set up shipping zones

Optimize international shipping by setting up a customized shipping zone. This is a group of countries or regions with the same or similar shipping rates.

For example, say you’ve partnered with a manufacturer in the Netherlands that can easily ship anywhere in the European Union. Create a shipping zone including all the member states, charging the same shipping rate.

You can also create a zone with free shipping to your local Shopify customers.

4. Be transparent with your shipping

If you’re offering international delivery, write a clear shipping policy. It’s a must-have for all eCommerce businesses.

You should state:

• How and where you ship
• Who pays import duties and taxes
• Whether order tracking is available
• How long does regular or shipping express take
• Process for returns and refunds

It’s the right place to cover any additional fees your customers might have to pay. This way, you save time and avoid misunderstandings for both you and your customers.

5. Target ads to shipping destination countries

An important part of any international shipping strategy is marketing. Reach potential customers quickly and effectively by targeting ads to a specific country, region, state, or province.

Check these popular advertising options:

• Meta Ads. Market your business by advertising directly on Facebook and Instagram.
• Google Ads. Place ads on Google’s search results, apps, videos, and non-search websites.
• TikTok Ads. Reach a wide audience with an app that has more than one billion active users worldwide.

Additionally, offer special deals, limited-time offers, and product bundles at discounted prices to attract more customers and increase sales.

Step 1: Create a Printify account

Sign up and gain access to a wide variety of customizable products, free design tools, and a worldwide network of carefully vetted Print Providers.

Step 2: Select a product

Our Catalog has over 1000 high-quality products, including apparel, accessories, and home decor. Select your favorite, and click Start designing.

Step 3: Apply a design

With our beginner-friendly design tool, the Product Creator (formerly known as Mockup Generator), quickly upload an image, logo, or text to create a one-of-a-kind product everyone will love.

Step 4: Connect your store

We offer a seamless Shopify integration, so just follow our easy step-by-step guide.

Step 5: Start marketing and selling

When everything is set up, engage with potential customers and start profiting. Our Print Providers will handle all the heavy lifting for you – printing, packaging, and shipping.

Incorporating shipping into product pricing

Incorporating shipping costs into your product pricing is a nuanced shipping strategy that can streamline the eCommerce shipping experience and elevate the perceived value of your offers.

Offering free shipping

Free shipping is a powerful incentive in the eCommerce world. It addresses the modern consumer’s expectation for seamless online shopping experiences. However, the challenge lies in leveraging free shipping without diminishing profit margins.

Balancing act:

• Incorporate costs wisely – Integrate shipping expenses into the product’s price carefully, ensuring you remain competitive without overstating prices.
• Minimum purchase thresholds – Setting a minimum order value to qualify for free shipping can encourage larger purchases, indirectly covering the shipping expenses while increasing the average order value.
• Targeted free shipping offers – Providing free shipping selectively can help manage costs effectively while still leveraging its marketing benefits.

Tiered shipping rates

Tiered shipping is a strategic move for an eCommerce business aiming to increase its average order value. This approach adjusts shipping costs based on the total purchase amount, creating a powerful incentive for customers to buy more.

Balancing act:

• Calculate costs precisely – Understand the detailed costs associated with shipping different types of orders and set tier thresholds that encourage higher spending without diminishing profits.
• Monitor and adjust – Continuously review the performance of your tiered shipping model, adjusting thresholds and rates as needed to ensure they inspire the desired customer behavior.
• Transparent communication – Clearly articulate your shipping policies to customers, highlighting the benefits of spending more to achieve better rates.

Economy Shipping: The cost-effective solution for price-sensitive customers

Economy Shipping emerges as a beacon for businesses aiming to captivate price-sensitive customers without urgent delivery needs.

It is cleverly designed for eCommerce shipping strategies looking to balance cost-efficiency with customer satisfaction. Starting at $3.99, it’s a fully tracked, reliable service that promises to deliver across the United States within 4-8 business days. 

While it might trail slightly behind Standard Shipping in speed, it compensates with up to 15% savings, making it an attractive offer for both new and regular customers who prioritize cost over shipping delays.

Why Economy Shipping?

• Lower delivery costs – With rates starting at $3.99, it significantly reduces shipping expenses, boosting your revenue.
• Competitive edge – Offering customer-focused pricing without compromising quality can set you apart from competitors.
• Customer satisfaction – Adding more shipping alternatives caters to a broader customer base, meeting varied shipping needs and preferences.
• Business growth – Targeting price-conscious shoppers expands your customer base and eCommerce business reach.

Standard Shipping: The balanced approach for everyday orders

Standard Shipping strikes a harmonious balance between cost and delivery speed, making it the ideal choice for regular online shopping. It caters to a broad spectrum of businesses seeking the best shipping strategy for customer satisfaction and operational efficiency.

This eCommerce shipping method is tailored for those prioritizing a middle ground, offering reliable delivery times at reasonable packaging costs without the urgency of Express Shipping.

Why Standard Shipping?

• Cost-efficiency – Standard Shipping is a budget-friendly alternative to Express Delivery, reducing extra costs while maintaining reasonable delivery times.
• Widespread availability – Accessible across all sales channels and Print Providers, it ensures that your products reach customers regardless of location, including international shipments.
• Flexibility – With options to upgrade to Priority Shipping, you can offer customers the choice to fast-track their orders for an additional fee, enhancing customer service.
• Custom packaging inserts – This option also allows for custom packaging inserts, enabling you to elevate the unboxing experience without significantly impacting delivery costs or times.

Standard Shipping is an effective way to meet customer expectations for flat-rate shipping, offering a clear and straightforward pricing structure that can simplify decision-making for buyers.

Express Shipping: Fast-tracking eCommerce success

Express Delivery shines as Printify’s swift solution for eCommerce businesses needing to expedite orders, especially during the peak of the holiday season or enticing special promotions. This shipping option is not just a luxury but a necessity for catering to the modern shopper’s expectation of quick delivery.

Why expedited shipping?

• Boost sales – Implementing Express Shipping to meet the demand for faster delivery options has proven to enhance customer purchasing decisions. Quicker shipping availability sways over 60% of shoppers, making it a significant lever to increase conversion rates.
• Seasonal advantage – During holiday seasons, two-day shipping becomes an invaluable tool for capturing the last-minute shopper market, ensuring gifts and purchases arrive just in time, no matter the total cost.
• Competitive edge – Offering Express Shipping places your eCommerce platform on par with major retailers, providing a comparable shopping experience that will encourage customers to return for more.

Cost efficiency and product selection

While Express Shipping is a premium service, it’s structured to be cost-effective. Starting at $7.99, with a modest increase for additional items, merchants can offer fast delivery without excessive shipping costs.

Operational excellence

Orders eligible for Express Shipping are expedited, with dedicated fulfillment centers ensuring quality remains a top priority. This quality promise doesn’t compromise the product’s integrity, ensuring swift delivery without sacrificing excellence.

Expanding your market

Whether you’re a newly sprouted online store or an established enterprise, it lets you appeal to a broad audience, including people who buy online at the last minute and who are more likely to purchase with the promise of quick delivery.

Priority Shipping: Finding the middle ground

Priority Shipping strikes the perfect balance between the speed of Express Shipping and the cost-effectiveness of Standard Shipping, offering a solution for businesses aiming to meet varied customer demands for speed without incurring higher costs.

This method is especially beneficial for eCommerce shipping strategies that require flexibility in shipping rates and speed, catering to customers who value quicker delivery but are also mindful of costs.

Distinguishing Priority from Express Shipping

While Express Shipping focuses on the fastest delivery possible, Priority Shipping emphasizes a speedy delivery that doesn’t compromise efficiency or cost. It doesn’t accelerate the order processing or production phases but shortens the delivery timeline, offering a significant advantage for businesses and consumers alike.

Why Priority Shipping?

• Enhanced satisfaction – By providing an option that’s faster than Standard but more cost-effective than Express, eCommerce platforms can cater to a broader audience, enhancing the overall customer shopping experience.
• Increased flexibility – Priority Shipping allows businesses to offer free shipping or flat rate shipping options on selected products, improving the attractiveness of their shipping offer and potentially reducing cart abandonment.
• Optimized for domestic and international shipments –  Whether it’s local or more complex international delivery, Priority Shipping adapts to various needs, including managing shipping labels and shipping carriers.

Implementing Priority Shipping in your eCommerce shipping strategy

To integrate Priority Shipping effectively, consider it part of broader eCommerce shipping solutions. This method fits perfectly within a tiered shipping strategy, where customers are offered different delivery options based on their urgency and budget. 

It’s also crucial to clearly communicate the availability of Priority Shipping, especially for international shipments where customers might be looking for a balance between shipping speed and cost.

It presents an opportunity for eCommerce platforms to fine-tune their delivery strategies, ensuring they can provide competitive shipping prices, maintain healthy margins, and still meet the expedited delivery expectations of their customers.

Seasonal strategies

Leveraging seasonal trends is key to capturing the attention of both last-minute shoppers and cost-conscious buyers. Promoting Express Shipping options during the holiday rush caters to those in urgent need of gifts and items, ensuring timely delivery for these high-stakes purchases. 

Post-holiday, shifting focus to Economy Shipping can attract less time-sensitive and more price-aware buyers, expanding your customer base and maintaining steady shipping volume even in off-peak times.

Customer segmentation

Effective customer segmentation allows for the personalization of shipping offers. Businesses can enhance customer satisfaction and loyalty by identifying different customer groups, such as premium shoppers, and offering them exclusive shipping options like Express Shipping. 

This tailored approach ensures delivery strategies align with customer expectations, encouraging repeat business and fostering a strong connection between the brand and its customers.

Bundling products

Encouraging customers to make larger purchases through bundled offers is a proven strategy to increase average order value and reduce shipping costs per item. You can encourage customers to buy more, effectively boosting sales and optimizing shipping efficiency. 

This strategy enhances the customer’s perceived value and significantly impacts the eCommerce business’s bottom line by maximizing profits through strategic shipping methods.

1. Shipping methods

These determine the shipping speed and who will deliver it. There are a range of common shipping services:

• Same-day Delivery
• Overnight Shipping
• 2-Day Shipping
• Longer Shipping Times
• International Shipping

2. Shipping rates

How much you charge your customer for shipping. This cost is on top of the cost of the goods they have purchased and are added to the order at checkout.

3. Shipping times

The timeframe between when order fulfillment is completed and the package is handed to the carrier, to when the order is delivered to the end customer.

4. Shipping cost

The variables that affect the price a carrier will charge to deliver your order. These factors include package measurements, shipment type, weight, speed, delivery preferences and location.

5. Shipping carrier

eCommerce shipping companies that deliver your products to the customer. The rate they charge will be based on a range of factors unique to every shipment.

6. Profit margins

Profit margin represents the percentage of each sale that has been turned into profit. For example, if a business achieved a 20% profit margin during 2021, they made a net income of $0.20 per dollar sold. It is one of the most common ratios used to gauge the profitability of a company or business activity.

Same-day delivery

The demand for same-day delivery is huge. Research shows that over 75% of consumers prefer this shipping solution.

This shipping solution either delivers products to the customer on the same day the order is placed or ships out the product on the same day. Your eCommerce store should clearly state which version of same-day shipping you operate on, ensuring customers are completely aware of the shipping timeline.

Overnight shipping

Also known as next-day delivery, these services guarantee customers will receive their order the next business day. As with all rapid delivery services, demand is huge. Research shows that , next-day delivery makes 49% of shoppers more likely to shop online.

This is an excellent shipping option when a customer needs an order ASAP. Customers understand there is often an extra cost for overnight shipping, enabling you to pad your profit margin.

2-day shipping

Thanks to Amazon’s push for 2-day shipping as an industry standard, research now shows that only 44% of consumers are willing to wait two days for orders to be delivered via fast shipping.

Much like the previous two shipping solutions, this may not be the most cost-effective shipping solution until your eCommerce business has scaled to the point where you can afford the infrastructure necessary.

Longer shipping times

These are usually the most affordable eCommerce shipping methods available. Research indicates that only 15% of US consumers are happy about delivery speed and these slower methods, such as ground shipping, are best saved for items that are not time-sensitive.

While many people want to receive items quickly, many are willing to wait a few days. According to research, 21% of people are willing to wait 3-4 days and 10% will wait 5-7 days, however only 2% are willing to wait 1-2 weeks.

International

International shipping is any shipping method that transports and delivers packages beyond the online business’s domestic shipping area. This could be across different countries or even continents.

1. Flat-rate shipping

When you offer flat-rate shipping, customers get a set price for the shipping option, no matter the dimensions or weight of the order. Charging a flat rate for shipping allows your online shoppers to increase their orders without increasing the overall shipping cost, making large orders more attractive.

2. Real-time carrier rates

This shipping pricing method is to charge live carrier rates for delivery. Sales channels like Shopify have shipping integrations that work in real-time with a range of shipping carriers to generate shipping solutions and live pricing. This gives your customers the flexibility to pick and pay for the exact services they want.

3. Free shipping

Everyone loves something for nothing and free shipping is no exception!

This shipping rate is an eCommerce customer favorite and one of the best ways to reduce online shopping cart abandonment. However, remember shipping is never free and someone has to pay for it. 

4. Expedited shipping

When customers need an order delivered ASAP, expedited shipping can save the day.

This rate puts the package ahead of slower solutions like flat-rate and in some cases provides definite delivery times. This shipping rate is often delivered in the same time frame as same-day, overnight, or 2-day shipping methods.

5. Local delivery

In a Shopify consumer trends report, one key trend is the increased support for small business owners. Nearly a third of consumers say they’ve bought something online and had it delivered locally during the first three months of the pandemic. 79% of those who reported shopping locally online said they did so to support their communities or protect local jobs.

Local delivery has the potential to connect with local customers, increase sales and be a memorable customer experience.

Find a local dropshipping supplier or multiple suppliers

To get delivery times down, one of the most effective and simplest methods is to find a supplier that fulfills orders locally, shipping domestically.

When shipping print-on-demand products with Printify, you can select a print provider local to your customer. This will minimize shipping times and cut back on expenses. Not only is this great for your prices per order, but it will also have a positive impact on customer satisfaction.

Automating your order processing and fulfillment

Automating your order and fulfillment process means the whole process will be handled for you. The aim is that everything becomes a lot easier and a lot faster.

Tips to reduce eCommerce shipping costs

Here is a quick breakdown of the following tips and tricks to help you save on shipping expenses:

1. Reduce package weight and dimensions
2. Use flat-rate shipping when possible
3. Offer local delivery or pickup
4. Decrease the shipping distance
5. Find discounted or free supplies
6. Pick specific shipping and fulfillment center locations to maximize reach
7. Research hybrid services
8. Take advantage of cheaper rates for volume shipping
9. Reuse boxes and packaging materials to reduce packaging costs
10. Negotiate prices for business accounts
11. Pick specific shipping and fulfillment center locations to maximize reach

Let us know in the comments which of these tips helped save you the most on shipping costs!

Consider your margins

It can be costly to live up to customer expectations, with fulfillment, delivery speed, and accuracy critical. This can lead to a struggle with eCommerce profitability.

Success in eCommerce requires you to always keep an eye on your profit margins. Before your pricing and strategy is set in stone, map out all the top eCommerce shipping solutions and cost of delivery.

Minimum spend threshold

Setting a free shipping threshold can be a straightforward way to upsell and increase your average order value. However, an arbitrary threshold could be useless to customers or eat up your margins. For example, if your average order value is $20 and your minimum is $200, you won’t get many bites.

At the same time, if you set your minimum below your average order value, most customers will qualify and you will lose money. This quick breakdown will help you calculate your threshold. Breaking down your threshold can be essential to enable you to maintain a sustainable offer.

Bundles

If you can increase your average order value, then you can increase the affordability of offering free shipping.  Bundles can be an easy method of offering a preselected group of products as one product, for example a gift set at a discount. Alternatively, you can offer a mix-and-match option for shoppers to save.

Upselling through bundles can boost your average order value, while reducing average fulfillment costs.

1. Shopify

Shipping needs to be set up in one of the following ways: 

If you have an Advanced/Annual Shopify plan or carrier-calculated rates available for your Shopify account, you can enable the Printify Shipping Calculator for Shopify.

If you have a basic or regular Shopify plan, you can choose between weight-based or price-based shipping settings.

2. WooCommerce

Download and activate the Printify for WooCommerce plugin. This will enable you to publish Printify products to your WooCommerce store, and the applicable shipping rate will be assigned to them automatically.

3. Etsy

The applicable shipping rates will be automatically assigned to Printify products.

4. eBay

The applicable shipping rates will be automatically assigned to Printify products. This handy how-to will give you a quick rundown of setting up shipping with eBay.

5. BigCommerce

Choose between “Free shipping” or weight-based flat rates. For more info, jump into this quick BigCommerce shipping guide.

6. Wix

Choose between “Free shipping” or a flat rate setup. Check out this quick breakdown of how to set up shipping with Wix.

7. PrestaShop

Choose between “Free shipping” or weight-based flat rates. For a detailed deconstruction, check out this Prestashop shipping setup guide.

8. Squarespace

Choose between “Free shipping”, flat rates, or weight-based flat rates. For an easy-to-digest guide, have a browse of this quick how to set up shipping with Squarespace article.

9. Custom Printify API

As integrating by API is highly case-specific, our specialist team is on hand to offer a bespoke service.

All sales channels have the standard shipping solution available. In addition, an priority shipping option is available in the following cases:

• Shopify stores (only if using the Printify Shipping Calculator)
• WooCommerce stores
• Manual orders submitted from your Printify account

For all other sales channels, existing orders can be upgraded for an additional charge if the chosen print provider offers it.

1. Make shipping costs clear

49% of people abandon their shopping cart because extra costs at checkout were too high. This survey clearly shows that when consumers encounter unexpected shipping costs, they’re more likely to abandon their cart and not complete their order.

2. Display expected delivery times

Providing an estimated delivery date will save you a lot in customer support. If the customer can clearly see the delivery time before ordering a product, they will be aware of the minimum and a maximum number of days. This adds an extra layer of security and reliability for the customer.

3. Enable customers to track their package

Throughout the eCommerce shipping process, 97% of customers expect the ability to track the order. Providing customers with order tracking enables you to meet customer expectations and provide a higher level of customer service if there are shipping issues.

4. Provide a dood returns service

The quality of your returns service can offer you a competitive advantage. With 95% of consumers who are happy with a store’s return process state they’ll shop with the retailer again, a positive experience can benefit you in the long run. In this study, 49% of consumers actively check the retailer’s return policy before buying.