As a business owner, feeling apprehensive about shipping and delivery is natural. Even if you can efficiently pick, pack, and mail your products as soon as a sale comes in, you still depend on a shipping carrier to deliver the package in good condition and on time. The courier you select significantly impacts a customer’s experience and perception of your business.
Moreover, shipping costs are substantial, with the average online store owner spending 8.7 percent of their annual expenses on shipping. More than one in three business owners reported that shipping was the most unforeseen cost of launching their business, Utilizing services like Ship with Mina can help manage these expenses efficiently.
However, you can control your shipping strategy to deliver excellent customer experiences without hurting your profits. In this Shopify shipping guide, we will talk about some of the effective Shopify shipping strategies that you should follow. So, read on before you get in touch with a Shopify development company:
Shopify Shipping Vs Shipping in Other Platforms
Now, let’s compare Shopify shipping with shipping options on other popular eCommerce platforms such as WooCommerce, BigCommerce, and Magento:
| Feature | Shopify Shipping | WooCommerce Shipping | BigCommerce Shipping | Magento Shipping |
| Integration with Carriers | Native integration with USPS, UPS, DHL Express, and Canada Post. | Requires plugins for carrier integration (e.g., USPS, UPS, FedEx, DHL). | Native integration with USPS, FedEx, UPS, and Australia Post. | Requires extensions for carrier integration (e.g., USPS, UPS, FedEx, DHL). |
| Shipping Rates Calculation | Real-time rates based on carrier rates. | Real-time rates via plugins (e.g., WooCommerce Shipping, Table Rate Shipping). | Real-time rates based on carrier rates. | Real-time rates via extensions (e.g., Magento Shipping Suite). |
| Label Printing | Print labels directly from the admin panel. | Print labels via plugins (e.g., WooCommerce Shipping Labels). | Print labels directly from the admin panel. | Print labels via extensions (e.g., Magento Shipping Labels). |
| Discounted Shipping Rates | Access to discounted rates with major carriers. | Depends on the plugin and carrier agreements. | Access to discounted rates with major carriers. | Depends on the extension and carrier agreements. |
| Multi-Carrier Shipping | Supports multiple carriers out of the box. | Supports multiple carriers via plugins. | Supports multiple carriers out of the box. | Supports multiple carriers via extensions. |
| Shipping Zones and Rates | Customizable shipping zones and rates through Shopify shipping settings. | Customizable shipping zones and rates via settings. | Customizable shipping zones and rates. | Customizable shipping zones and rates. |
| Tracking and Notifications | Provides tracking numbers and shipment notifications. | Provides tracking via plugins. | Provides tracking numbers and shipment notifications. | Provides tracking via extensions (e.g., Magento 2 Store Pickup). |
| Fulfillment Services Integration | Integrated with Shopify Fulfillment Network. | Supports third-party fulfillment services via plugins. | Supports third-party fulfillment services. | Supports third-party fulfillment services via extensions. |
| International Shipping | Supports international shipping with customs forms. | Supports international shipping via plugins. | Supports international shipping with customs forms. | Supports international shipping via extensions. |
| Shipping Rules and Restrictions | Customizable shipping rules and restrictions. | Customizable via plugins. | Customizable shipping rules and restrictions. | Customizable via extensions. |
| Ease of Setup | Easy to set up and manage from Shopify admin. | Varies depending on the plugins used. | Easy to set up and manage from BigCommerce admin. | Varies depending on the extensions used. |
| Cost | Shipping features included in Shopify plans, potential additional costs for certain carriers. | Free plugins are available, but advanced features may require paid plugins. | Shipping features included in BigCommerce plans, potential additional costs for certain carriers. | Free extensions are available, but advanced features may require paid extensions. |
What are Some of the Best Shopify Shipping Strategies to Follow for Your Business?
Here are discussed some of the most effective strategies to follow that you should know before getting in touch with Shopify custom development agency:
Free Shipping
Free shipping can prove to be a robust marketing tool that helps in attracting customers. However, its viability is dependent on comprehending your shipping costs along with profit margins. For high-margin products, all that you can do is absorb the shipping expenses into the overall product price.
However, this strategy can be challenging in case you have low-margin items or if shipping costs vary extensively depending on the order size or destination. Tracking your average order value or AOV and the cost to ship your most common products will assist you decide if this particular strategy is feasible.
- Integrate Free Shipping into Your Pricing Strategy
If free shipping is a competitive necessity in your niche, you should focus on making adjustments in your product prices so that it covers the shipping costs. This method helps in making sure that you remain profitable. In this regard, you should take into consideration every single factor that impacts your pricing strategy. It includes your niche, competition, and whether you are dedicated to shipping internationally.
Lightweight packaging can again effectively reduce shipping costs. For delicate items, heavier packaging might be necessary, but for less fragile items, you need to make use of lightweight options such as poly mailers. Hiring the best Shopify developers can help you to implement this strategy effectively.
- Consider Setting a Minimum Spend Threshold
You should focus on offering free shipping especially for orders above a certain amount to encourage larger purchases. In this regard, you should determine your average order value and set a slightly higher threshold. For instance, in case your AOV is $40, you should consider offering free shipping on orders over $50.
With this particular strategy, you would be able to kickstart your overall sales. It also helps in improving customer satisfaction by reducing the perceived cost of shipping.
- Leverage Free Shipping as a Special Promotion
You can employ free shipping as a promotional tool, particularly during slow sales periods. This particular strategy even helps in clearing out old inventory. For instance, you can provide free shipping on every order during a particular month or for specific categories of products. It can even help in boosting sales without committing to free shipping all around the year. Thus, it lets you have better control of the shipping costs.
- Upsell Shipping Insurance
Another effective strategy to follow involves offsetting the cost of free shipping by offering shipping insurance. This add-on can offer customers peace of mind, knowing they will get a refund or replacement if their item is damaged or lost in transit.
For instance, a $4.99 insurance fee for an order can help cover shipping costs and generate additional revenue. If you need any related aid, all that you need is to hire Shopify expert developers who are dedicated to offering best-in-class Shopify development services.
Flat-Rate Shipping
Flat-rate shipping involves setting a fixed price for shipping, regardless of package size or weight. This specific method aids in simplifying your shipping process and makes it predictable for customers.
To set flat rates accurately, you should focus on evaluating your average shipping costs and make sure you do not overcharge or undercharge customers. Platforms such as Shopify can assist in automating this process by calculating shipping costs depending on product weight and dimensions.
- Offer Flat Shipping Rates for Paid Returns
Charge a flat fee for returns to deter fraudulent returns and cover return logistics costs. While free returns are popular in some industries, they can lead to excessive return rates. Charging a flat fee makes customers more mindful of their purchases and helps you manage return costs better. For example, you might charge a flat $5 fee for all returns.
- Set Flat Rates for Standard and Expedited Shipping
Provide flat rates for both standard and expedited shipping options to cater to different customer needs. For instance, offer free standard shipping and a flat fee for expedited shipping. This allows customers to choose based on their urgency and budget, improving satisfaction and potentially increasing sales.
Table-Rate Shipping
Table-rate shipping charges customers based on various factors like weight, size, volume, location, or shipping class. This method can be complex but allows for more precise cost management. Group products by similar shipping characteristics to simplify the process. For example, group all items weighing under 1kg together and charge a consistent rate for shipping these items.
- Build Product Segments
You should focus on grouping products by shipping characteristics such as weight, size, or fragility for creating precise shipping rate tiers. For instance, you are involved in selling art, group canvases by size, and calculating shipping costs to popular destinations. This segmentation helps in improving our shipping strategy’s efficiency and cost-effectiveness.
- Mention Country-Specific Shipping Rates on Localized Storefronts
You can localize storefronts to simplify table-rate shipping for multiple countries. In this case, customers are expected to see a list of shipping alternatives that are already filtered to their location.
You should focus on customizing rates to regional preferences, thereby providing faster shipping where expected and affordable options in price-sensitive markets. So, this targeted approach facilitates boosting your shipping strategy. In case, you are not using Shopify, then it is high time to choose Shopify website design solutions.
Real-Time Carrier Rates
Real-time shipping rates display actual costs from carriers at the time of purchase. This method ensures customers pay the exact shipping cost, preventing you from undercharging. Embedding a real-time rates calculator on your website builds trust by showing that you’re not inflating shipping fees.
- Absorb Handling Costs in Product Pricing
Real-time shipping rates only cover shipping, not handling or packaging costs. Absorb these additional costs into your product pricing. For instance, if your product’s profit margin is $10, consider adding $1 to cover handling costs. This helps maintain profitability while keeping shipping rates competitive.
- Negotiate Better Shipping Rates with Major Carriers
You must reduce your shipping costs. It is possible by negotiating better rates with carriers. In this regard, you should focus on researching various shipping alternatives. Also, establishing partnerships with carriers that provide the best discounts is a good idea.
For instance, if you are involved in shipping recurrently with USPS, then you can focus on negotiating a bulk shipping rate to lower your costs.
Local Delivery
You can again offer local delivery for effectively lowering shipping costs and improving customer satisfaction levels. This is considered to be particularly effective in case you have a warehouse or physical store. Local delivery can be called a cost-effective alternative to employing third-party carriers, and it lets you provide swifter shipping times to nearby customers. For more details, you can hire Shopify experts.
- Provide Free Local Delivery Over a Particular Spend
One of the Shopify effective strategies that you can adopt is to set a minimum order threshold for free local delivery. With this, you can encourage larger local purchases and help cover the delivery cost. For instance, you can offer free local delivery for orders over $50. This particular strategy can facilitate boosting local sales and effectively reduce your dependency on 3rd party carriers.
- Incentivize Click-and-Collect Over Local Delivery
You should focus on promoting in-store or curbside pickup to save a lot on delivery costs. In this regard, you can offer free click-and-collect services and also charge a small fee for local delivery. This particular strategy persuades customers so that they visit your store, where they might make extra purchases. Ultimately, it helps in improving your overall sales volume.
Wrapping Up
Thus, selecting the appropriate shipping strategy can considerably affect your conversion rates along with profitability. In this regard, you should focus on evaluating your unique requirements, competitors, and customer preferences to find the best approach.
Stay flexible and adjust your strategy as your business grows and changes. To learn further, you can reach out to professional Shopify experts in USA. As they possess related experience and so, they can assist you in the best possible manner.
