Shopify – Guide to Ecommerce Shipping and Fulfillment

by Julia Jackle - Jun 20, 2020

So you’ve already set up your Shopify store, have your products displayed, chosen an ideal niche, and even identified your target audience? Well, that’s great! But have you thought about your shipping strategy? Perhaps you’ve got an idea and even if you don’t know where to get started you will be pleased to learn that it is not as complex and intricate as you might have thought. To help you out with your shipping strategy, we have created this guide to direct you through the entire process.

Shipping strategy

Setting up a holistic and effective shipping strategy is the first step for any online merchant. The thing is before you can accept your first order, you must decide which shipping methods y so that your customers can choose a shipping method that is most appropriate when checking out. Moreover, be open to the fact that your shipping strategy is likely to change over time as your store grows.

Shipping costs

Before you can start selling, you need to set how much you want to charge for shipping. And if you are managing your inventory across multiple sites, it is advisable to offer flat rate shipping or shipping for all your locations. Here are a few ways to determine shipping costs. Since most shipping costs are calculated based on weight, if a shopper leaves the cart and adjusts the order, the charges might change. However, once they return to the checkout page, the cost will be updated to match their adjusted order. And if a shopper provides an address that you don’t ship, shipping charges will not be shown to them since no rates are available for that particular region.

Free shipping

If you would rather not charge for shipping, Shopify allows you to set it as an option. This will have a positive impact on the conversions at your shopping carts. And even if your business is in its infancy, you can still ingeniously offer free shipping without losing money by:

  • Ingeniously adjusting product prices to cover for all shipping expenses.
  • Pay for the cost directly from your profit margins
  • Offer free shipping as a discount code for certain shoppers.
  • Ship for free to orders that reach a certain amount of money. By so doing, you will offset the costs of free shipping since it will encourage customers to shop for more and close sales at the checkout.

 

Charge Real- Time Carrier Rates

Another way to go by this is by charging real-time carrier rates from logistic companies that have partnered with Shopify. If you choose this, the charges will be automatically calculated and showed to the shopper when they are checking out. This will also give shoppers the autonomy and freedom to determine the shipping service that is most appropriate and affordable for them. The rates charged by shipping couriers are based on a wide array of factors such as

  • Package weight
  • Package size
  • Destination country
  • Origin country

Plus other additional miscellaneous such as insurance and tracking.

Charge a Flat Rate

The last popular option is to offer flat rate shipping. The best practice for this option is to try and make sure that you don’t drastically undercharge or overcharge your customers. Flat rate shipping works best when you have a fairly standard product line of items that have similar sizes and weights. Flat rate shipping tends to become complicated and less effective if you sell a wide variety of products with different sizes and weights.

 

Tip for Cash on Deliver (COD)

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About the Author:
Julia Jackle
Julia is the co-founder and CEO of Creative971 and has written blogs in the past for the Entrepreneur Magazine UAE. Her extensive knowledge in the E-Commerce industry in the UAE and GCC is widely appreciated.

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