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Get the Best Shopify Discount Shipping Rates: 3 Insider Tips

Jaques Cilliers - Writer for BeProfit
By Jaques Cilliers
Kelly Hendrickse - Editor for BeProfit
Edited by Kelly Hendrickse

Published April 26, 2023.

Shopify offers shipping discounts through third-party carriers.

Shipping rates can make or break a sale. According to Shopify's Commerce Trends report, 74% of consumers want to know shipping costs from the get-go and 60% want same-, next-, or two-day delivery. Meeting these expectations can have a significant impact on conversion, revenue, and profits. So, finding sustainable options for discounted shipping rates can help you stay competitive in the e-commerce market.

» Find out how to increase e-commerce store revenue with customer discounts

What is Shopify Shipping?

Shopify shipping is an integrated way to manage and fulfill shipping orders directly from your Shopify store.

This feature is available to anyone with a monthly Shopify subscription who ships items from the US, Canada, or Australia.

Some benefits of the integrated method include:

  • Easy management - Shopify owners can manage all shipping orders in one place, simplifying the fulfillment process and saving time.
  • Track packages from Shopify - You can view shipment tracking information directly on the Shopify platform, so you can easily monitor and troubleshoot any delays that may happen.
  • Embedded shipping insurance - There's built-in shipping insurance available that can provide store owners and customers with extra protection if a package gets lost or damaged during shipping.

Integrate Your Shopify Stores For Easy Monitoring

Reduce the hassle with an all-in-one dashboard for KPI performance tracking, so you can keep track of your business's conversion metrics.

  • Shipping data can be pulled automatically from online platforms and integrated.
  • Get up-to-date reports on shipping and processing fees.
  • Access conversion rates and profitability per platform and product.

BeProfit can help you keep track of your sales performance and shipping profiles in real time, so you can easily spot when a shipping discount strategy is not converting the way you need it to.

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3 Tips to Get the Best Discount Shipping Rates

Shipping discounts can impact a business's bottom line. It can also help Shopify stores reduce shipping costs and can have a positive effect on profit margins and price competitiveness.

Let's look at a few tips to get the best discount shipping rates for your store:

1. Calculate Shipping Rates

Shopify's shipping rates are generally calculated based on factors such as package weight and dimensions, destination, shipping method, and carrier.

The benefits of this system include:

  • Real-time tariff calculation
  • Carrier integration
  • Discounted tariffs for users

Here's a step-by-step guide to calculate discounted shipping rates using your Shopify account:

  1. Sign into your Shopify account and go to Settings > Shipping & Delivery.
  2. Screenshot of the settings section on a Shopify dashboard as the first step to calculating discounted shipping rates
  3. Click Manage next to the desired shop location.
  4. Screenshot of choosing the shop location while calculating discounted shipping rates
  5. Select Add rate and select Use carrier or app to calculate rates.
  6. Screenshot of adding a shipping rate to calculate discounted shipping rates
  7. Enter the dimensions and weight of your package and select your preferred carrier.
  8. Screenshot of choosing a carrier while calculating discounted shipping rates
  9. Repeat the above steps for additional carriers and shipping methods as needed.
  10. Add products to your shopping cart and checkout to test your new plan.

» Need to know more? Learn how to calculate shipping costs for your Shopify Store

2. Explore Shipping Partners

Shopify has partnered with several major carriers for its shipping services, including USPS, UPS, DHL Express, and Canada Post USPS. Each provider has multiple options that vary in price and shipping time. DHL, for example, has up to 74% shipping discount rates through Shopify and offers the following, among others:

  • First-Class Package Service offers delivery in 2-5 business days.
  • Priority Mail delivers in 1-3 business days.
  • Priority Mail Express provides a delivery guarantee of 1-2 business days.

By using these services, Shopify store owners can access discounted shipping rates based on any given Shopify plan and also enjoy benefits such as international shipping discounts.

To use these options, simply set up shipping rates and connect your shipping carrier account to your Shopify account. This helps by:

  • Streamlining the shipping process
  • Reducing costs
  • Improving overall customer experience
  • Boosting Shopify sales and profits

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3. Consider Your Rate Options

You can also set predetermined rates for each purchase from your Shopify store, which can allow for greater flexibility and optimized pricing that can help increase your profits.

But it can lead to under-charging or over-charging, so be sure to test your rates first. For example, free shipping on all orders can lead to lower profits, and high rates regardless of how small the purchase is can lead to customer dissatisfaction.

Here are some shipping options:

  • Flat rate - This is a fixed shipping rate for all orders regardless of weight, size, or destination. A use case example is if a store sells small items with a consistent shipping cost.
  • General shipping - These shipping rates are also fixed rates, but with some wiggle room, such as a set rate per shipping method. An example is a store offering free shipping for orders over $50 or charging a flat rate for orders using standard delivery times.
  • Weight-based - Shipping rates here depend on the weight of the package. For example, a store that sells products of varying weights, such as furniture or pet supplies, may implement this shipping calculation.
  • Price-based - These rates are based on the total price of an order. For instance, a store may offer discounted shipping rates for high-value purchases or for customers who sign up for a subscription.

Discounted shipping can be applied to each of these shipping rate options where needed to help increase Shopify conversion rates and profits.

» Discover shipping analytics: benchmarks and insights for e-commerce sellers

Save Time and Money With Discount Shipping Rates

Utilizing Shopify shipping and its discounts can help store owners reduce shipping costs and focus on customer satisfaction, which can increase sales and profits. But that's only one part. Keeping track of your ROI and sales performance can help you identify where the discounts aren't effective and which shipping methods should be changed. With BeProfit, you can integrate your Shopify store into an intuitive dashboard for real-time monitoring of e-commerce expenses, profits, and shipping profiles.

BeProfit: Profit Analysis Dashboard

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