Setting the right shipping rates is one of the trickiest parts of running an online store. Too high, and you risk abandoned carts. Too low, and you eat into your profits. Whether you’re selling handmade goods, vintage finds, or print-on-demand products, your shipping strategy can make or break your margins. Here’s how to price shipping smartly—without leaving money on the table.
Start by Knowing Your Costs
Before setting any rates, calculate your average shipping cost per order. This includes postage, packaging materials, and even extras like thank-you cards or branded inserts. Weigh your products with packaging, measure box dimensions, and run estimates through carrier calculators like:
Choose a Pricing Strategy
There are three common approaches to shipping rates:
- Flat Rate Shipping
This method offers simplicity: charge a consistent rate regardless of order size or location. It’s ideal if your products have similar sizes and weights. Just make sure to base the rate on your average cost, not a guess.
- Real-Time Carrier Rates
Many e-commerce platforms (like Shopify, BigCommerce, and WooCommerce) allow you to pull live shipping rates directly from USPS, UPS, or FedEx. This gives customers an accurate cost at checkout but may lead to sticker shock, especially on heavier or distant shipments.
- Free Shipping (Built into Product Price)
Offering “free” shipping can boost conversion rates, but you’ll need to roll the shipping cost into your product price or accept lower margins. This strategy works well for high-margin items or when competing on platforms where free shipping is expected.
Consider a Tiered System
If your store offers a wide range of products, consider setting tiered shipping rates based on order value or weight. For example:
- Orders under $25 = $4.99 shipping
- Orders $25–$50 = $2.99 shipping
- Orders $50+ = Free shipping
This rewards larger purchases and helps cover rising shipping costs at scale.
Use Fluz to Lower Your Own Costs
If you’re buying mailers, boxes, shipping scales, or label printers regularly, reduce your overhead by purchasing Fluz gift cards for stores like Staples or Target. This lets you earn cashback on essential business expenses.
A/B Test and Adjust
Shipping strategies aren’t set in stone. Test different rates, monitor cart abandonment, and ask for customer feedback. Your best pricing model may change as your business grows or if carrier rates shift.
There’s no one-size-fits-all solution to shipping rates—but with a bit of math, clear communication, and smart use of tools like Fluz, you can craft a strategy that keeps your customers happy and your business sustainable. The goal isn’t just to cover your costs—it’s to make shipping part of the overall value your brand delivers.
