Shopify Shipping: Costs, Carriers, and Best Practices

Introduction

Shipping plays a crucial role in eCommerce success, directly influencing customer experience, retention, and overall profitability. With more businesses launching online stores on Shopify, finding a seamless way to fulfill and ship orders has become a top priority. While merchants have multiple shipping services to choose from, many rely on Shopify shipping, an in-built solution that streamlines logistics and offers competitive shipping rates through its carrier partnerships.

By integrating Shopify's controlled shipping process into their operations, businesses can access discounted shipping costs, automated label generation, and an order fulfillment process that eliminates guesswork. Instead of juggling multiple shipping services, Shopify users can manage shipping labels, track deliveries, and optimize free shipping strategies from a single dashboard. The convenience of having shipping built into Shopify has allowed businesses to reduce manual tasks while ensuring customers receive their orders faster and more reliably.

What is Shopify shipping?

Shopify shipping is a built-in shipping solution designed for businesses using Shopify as their eCommerce platform. It simplifies order fulfillment by allowing merchants to compare shipping rates, generate labels, and track shipments—all within the Shopify dashboard.

The service partners with major carriers such as DHL Express, UPS, and USPS, enabling businesses to access pre-negotiated shipping rates at discounted prices. That makes it easier to ship orders efficiently while reducing costs on delivery failures. Unlike third-party shipping services, this shipping method provides real-time rate calculations, ensuring that customers see accurate shipping costs at checkout.

With Shopify deliveries, businesses benefit from a cost-effective and effortless shipping experience, ensuring they can start shipping with Shopify without complications.

Key benefits of using Shopify shipping for your store

Shopify shipping simplifies logistics by offering pre-integrated solutions that help businesses save on delivery costs while improving efficiency. Here’s a closer look at its benefits:

1. Discounted shipping rates

Merchants using Shopify’s services receive discounted shipping costs. That allows them to compete with larger retailers. The negotiated rates ensure businesses can save up to 88.5% on standard shipping fees from major carriers.

2. Convenient label printing and bulk order processing

With Shopify’s built-in label creation, merchants can print shipping labels in bulk, improving order management and delivery. It reduces fulfillment time and minimizes manual errors.

3. Embedded insurance to protect shipments

Businesses receive 200 of embedded insurance on eligible shipments, providing additional protection at competitive rates. The easy insurance claims process further safeguards merchants against potential losses.

4. Free shipping and customizable rates

It enables businesses to set free shipping promotions or create custom shipping rates based on order value or destination. It enhances the checkout experience and improves conversion rates.

5. Global expansion with international shipping

With built-in international shipping features, Shopify merchants can fulfill and ship orders worldwide while benefiting from competitive rates and customs documentation support.

Shopify shipping rate options

While Shopify shipping is free to use, businesses still need to pay for actual shipping costs, which vary based on carrier selection and shipping speed. Here’s a breakdown of rates and how companies can calculate discounted shipping efficiently.

1. Shopify subscription plans and shipping discounts

The discounted shipping costs available through Shopify shipping depend on the merchant’s subscription plan. Businesses on Shopify Basic, Standard, and Advanced tiers receive different savings:

• Shopify Basic – Discounts range between 35% and 67.6% on major carriers.

• Shopify Standard – Discounts range between 38% and 88.5%, offering the highest savings.

• Shopify Advanced – Greater flexibility with negotiated pricing for high-volume shipping.

2. Carrier-specific discounts

Shopify partners with USPS, UPS, and DHL Express, offering significant savings:

• USPS – Ideal for domestic shipping services, offering reduced costs on delivery failures.

• UPS – Enables businesses to choose personalized shipping options with tracking.

• DHL Express – Best for international shipments, ensuring efficient order fulfillment across borders.

By leveraging negotiated rates, businesses can save on delivery costs while providing unbeatable rates and effortless shipping to customers.

Downsides of Shopify’s default shipping

While Shopify’s service offers numerous advantages, it has certain limitations that merchants should consider.

1. Limited availability

This facility is only available for orders shipped from the US, Canada, Australia, UK, France, Italy, and Spain. Businesses operating outside these regions must use alternative shipping services like ShipBob or OrderCup.

2. Shopify-only integration

Since the shipping tool is built into Shopify, merchants cannot use it for Amazon, eBay, or Etsy orders. Merchants selling across multiple platforms need third-party solutions to correct and sync channels efficiently for fulfilling orders bought through shopify shipping.

3. Bulk label printing restrictions

Shopify shipping allows bulk label printing power, but merchants can only print 20 labels at a time, which may slow down fulfillment for high-volume stores.

4. Lack of workflow automation

Unlike dedicated shipping services, Shopify’s service lacks automation features for batch processing or displaying rates at checkout dynamically.

5. FedEx not supported

Currently, Shopify does not support FedEx, meaning businesses relying on FedEx Express Saver must use external shipping solutions.

While Shopify shipping is an excellent built-in tool, businesses must evaluate whether it aligns with their logistics needs. High-volume merchants or those shipping from unsupported regions may require additional shipping services to ensure seamless operations.

How to optimize Shopify shipping rates?

Optimizing shipping rates can be a game-changer in eCommerce. High shipping expenses can deter potential buyers, while inefficient pricing models can reduce a business’s profits. Whether you are a small brand or a growing enterprise, fine-tuning your shipping strategy can help you offer competitive rates, enhance customer satisfaction, and increase conversions.

Here are some of the best strategies to optimize your Shopify shipping rates effectively.

1. Leverage Shopify’s negotiated rates

One of Shopify’s most significant advantages is its pre-negotiated rates, which allow businesses to save on carrier fees. Instead of manually contacting different carriers, companies can access exclusive discounts offered through Shopify’s partner network. This feature of Shopify shipping will get eCommerce businesses to reduce costs compared to standard retail shipping prices while still offering reliable delivery options to customers.

2. Offer a combination of free and flat-rate shipping

While free shipping can boost conversions, businesses need to implement it strategically. Offering free shipping for orders above a particular value encourages higher spending while minimizing shipping-related losses. Additionally, companies can set flat-rate shipping for specific weight categories, ensuring customers are charged fairly while maintaining cost predictability for the store.

3. Optimize packaging to reduce dimensional weight pricing

Most carriers calculate shipping rates based on dimensional weight, which considers the package’s size rather than just its weight. To lower costs, businesses should:

• Use the smallest possible package dimensions without compromising product safety.

• Invest in lightweight, durable packaging materials.

• Reduce excess void fill (bubble wrap, paper stuffing) to avoid unnecessary bulk.

• By refining packaging strategies, merchants can cut shipping costs and reduce waste simultaneously.

4. Use regional fulfillment centers to reduce transit costs

Storing inventory in multiple fulfillment locations worldwide can significantly reduce transit times and costs. Shopify allows businesses to work with third-party logistics (3PL) providers like ShipBob and Deliverr, which distribute inventory across key shipping hubs. It minimizes long-distance shipping fees and ensures customers receive their orders faster.

5. Automate shipping rules to streamline the process

Manually calculating shipping rates for every order is inefficient. Businesses can streamline fulfillment and shipping by:

• Using automation tools to calculate discounted shipping based on weight, location, and order value.

• Pre-setting preferred carriers for different regions to optimize cost and delivery time.

• Enabling real-time rate calculations at checkout for transparent pricing.

Implementing these tactics can help businesses improve their order management and delivery processes while controlling shipping costs.

Top 5 Shopify shipping platform in 2025

Shopify’s built-in shipping features are useful, but many businesses require additional flexibility and automation. The following Shopify shipping apps offer advanced features such as real-time tracking, bulk label printing, and cross-border fulfillment to simplify logistics.

1. ShipBob

ShipBob is a leading fulfillment provider that helps brands scale by outsourcing warehousing and order fulfillment. With a vast network of 1,000 fulfillment locations worldwide, ShipBob allows businesses to store inventory closer to customers, reducing shipping times and costs.

 2. ShipStation

ShipStation is one of the most powerful shipping management apps. It supports over 50 global carriers and marketplaces and offers robust automation features to handle bulk shipments efficiently.

 3. AfterShip

AfterShip is a shipment tracking and customer notification tool that enhances the post-purchase experience. By offering branded tracking pages, merchants can improve engagement and reduce customer complaints.

4. Easyship

Easyship is an end-to-end shipping platform designed to help businesses access discounted rates from over 250+ carriers globally.

5. Shippo

Shippo provides affordable, multi-carrier shipping solutions with deep discounts and automation features.

Conclusion: Elevating your Shopify shipping game

Shipping is a critical factor that determines customer satisfaction, retention, and profitability. Whether you are a startup or a well-established brand, refining your shipping strategy can completely transform your business. With tools like Shopify shipping, merchants can access pre-negotiated shipping rates, automate order processing, and enhance the post-purchase experience.

However, no single solution fits all businesses. Some merchants may benefit from integrating third-party shipping apps to unlock additional features like global fulfillment, AI-driven tracking, and seamless multi-carrier support. The key is to balance cost efficiency, speed, and reliability to meet evolving customer expectations. By continuously optimizing shipping processes, businesses can create a competitive edge, boost conversions, and scale efficiently in the eCommerce space.