It can be a headache figuring out your exact shipping rates. There are many factors involved, and if you’re relying on third-party software or a marketplace, then you can be reliant on the rates they give you.
One mistake to avoid is overcharging your customers for shipping. If shipping rates are too high, customers will abandon their carts.
At the same time, you don’t want your shipping rates to be too low. Scaling a business while eating high shipping costs is a recipe for disaster.
So what’s the solution? As a business owner, you likely have other priorities than calculating your shipping costs. It’s the reason why you need to have real-time carrier shipping that helps do the job for you.
What is Real-Time Carrier Shipping?
Real-time carrier shipping consists of software that automatically calculates the shipping rates for buyers during checkout. It considers factors such as product weight and shipping destination to charge the proper rates.
Here are some of the benefits that come with adding real-time carrier shipping to your store:
Avoid Calculating Shipping Rates Yourself
Real-time carrier shipping helps take the guesswork out of calculating shipping costs. Just as buyers are about to checkout, they instantly get access to rates without you manually calculating it yourself.
As a result, you’ll gain extra time to focus on what truly matters the most — running your business. You gain peace of mind knowing you’re charging the correct shipping rates each time.
Charge Customers the Right Amount for Shipping
There are many things to take into account when charging your shipping rates. If you’re not setting up your rates correctly, you risk losing potential sales and revenue over shipping costs.
Real-time carrier shipping ensures you charge the correct amount each time, even if you’re shipping your items overseas.
Provide Transparency to Customers
Any friction during the buying process will cause customers to drop their shopping carts, so you want to ensure they don’t get nasty surprises.
Real-time shipping gives customers an idea of how much exactly they’ll be paying for shipping. As a result, they’ll be more likely to follow through with their purchase.
It’s important to note on the product page that shipping charges will be calculated at checkout—that way, they know exactly what to expect.
Your Carrier Options on Shopify
Shopify has three leading shipping carriers: USPS, UPS, and FedEx. At checkout, customers will get to see the negotiated rates based on the carrier that you selected.
The carrier-calculated shipping feature typically comes with the Shopify Advanced and Shopify Plus Plans. However, you can add it for $20/month, no matter which plan you’re currently on.
Let’s dive into the requirements for each carrier and how you can connect them on Shopify:
USPS
To start with USPS, you must register for a USPS User ID by signing up on their web tools registration form. The ID will give you access to package tracking and shipping rates.
From there, here’s how you can connect your shipping rates to USPS from the Shopify admin:
- Go to Settings > Shipping and delivery
- Go to the accounts and integration section and click on Manage Integrations.
- Add USPS as the shipping carrier you want to connect
- Enter your USPS User ID in the Connect USPS dialog
- At this point, you can add USPS rates to your current shipping zones, even those that don’t currently use USPS rates.
UPS
To calculate your shipping rates with UPS, you must create an account on their official website. Setting up your account is going to be free of charge.
The next step is to find your custom shipping number to connect with UPS. If your UPS account doesn’t have a shipping number yet, you will have to register for one as well.
Here are the different steps to follow when connecting your UPS account on Shopify:
- Go to Settings > Shipping and delivery
- Go to the accounts and integration section and click on Manage Integrations.
- Add UPS as a shipping carrier
- Enter your UPS credentials in the Connect UPS dialog
- Click Submit and continue
- Add your account and invoice details on the Verify your UPS® account dialog.
- Click submit
FedEx
FedEx is a popular carrier option for many stores. To set it up on Shopify, you must first create a FedEx account on their official website. The different types of shipping rates you can offer customers with FedEx include:
- FedEx 2 Day
- FedEx Express Saver
- FedEx First Overnight
- FedEx Ground
- FedEx Priority Overnight
Here’s how to connect to FedEx as a shipping carrier from the Shopify admin:
- Go to Settings > Shipping and delivery
- Go to the accounts and integration section and click on Manage Integrations.
- Add FedEx as a carrier.
- Enter your FedEx credentials in the Connect FedEx dialog
- Select whether you want to add FedEx rates to your existing shipping zones
- Click Save
As a business owner, you likely have other priorities than calculating your shipping costs. It’s the reason why you need to have real-time carrier shipping that helps do the job for you.
Learn How to Get the Best Shipping Rates Today
Connecting a carrier to your Shopify store is one of the best ways to estimate shipping rates. By charging customers the exact price, you won’t have to worry about overcharging them or losing money.
When selecting a carrier, you should understand some of the benefits and negatives associated with each carrier. Not everyone can offer free shipping, at least not immediately, but you should review these tips to see how to do it.
Getting reasonable rates involves negotiating with each carrier to get the best rates. Another method is using third-party software that has previously negotiated rates plugged into their software.
Essential Hub works with all our customers to ensure they’re getting the best rates and are taking advantage of a multi-carrier shipping approach. Find out how we can get you up and shipping with better rates immediately!
