There is no right answer here. Generally speaking, there are six methods in setting up shipping options on Shopify. The choice between the three has to do more with psychology than finance!
Option #1 – Fixed Rate Shipping Cost, regardless of Order (for example, $9.99 regardless of what the customer purchases)
Option #2 – Fixed Rate Shipping Cost, depending on the Order (for example, $9.99 if the customer purchases XYZ and $5.99 if the customer purchases ABC). (You can get as fancy as you want—change based on weights, cart total, etc.).
Option #3 – Free Shipping
Option #4 – Different Speeds. For example, $9.99 for 3-4 day Ground and $14.99 for 2-day Air.
Option #5 – Combination of two or more of the above. (For example, flat $9.99 on all orders unless X is true, then Free Shipping.)
Option #6 – Carrier Calculated Shipping Cost (for example, the customer is charged an estimate of what the shipment will actually cost based on their address and order details).
Regardless of which option one chooses, we find that the most successful and sustainable privately owned e-commerce brands get compensated for their true postage costs. This can be accomplished by: a) charging the customer equal to or more than the actual postage costs, or b) increasing the retail price of the products to include some average postage costs. Brands that truly subsidize postage mean two things: a) they will burn through a lot of cash (and won’t be around long), and b) they have weak brands, as their customers aren’t loyal enough to pay a few extra dollars for delivery.
The above discussion ignores International Shipments. There are creative ways to set up International Shipping options, whether shipping Delivered Duties Paid (DDP) or Delivered Duties Unpaid (DDU).
Additional shipping set-up questions? Contact us today to strategize with our team on how to set up your shipping options effectively. We can even do it for you!
