Shipping rates are a critical part of the e-commerce experience. They not only affect your profitability but also significantly influence conversion rates. According to the Baymard Institute, 39% of online shoppers abandon their carts because of unexpected extra costs, such as shipping (Baymard).
If you’re a Shopify merchant, setting up the right shipping rates can mean the difference between a completed sale and a lost customer. In this guide, we’ll explore two primary ways to set up shipping rates on Shopify: through Shopify’s native Shipping and Delivery settings and through third-party apps like Packrooster Shipping. We’ll also cover best practices to help you avoid common pitfalls and maximize conversions.
1. Using Shopify’s built-in shipping & delivery settings
Shopify’s native shipping settings work well for many small to mid-sized merchants. You can find these by navigating to Settings > Shipping and Delivery in your Shopify admin.
Types of rates you can set up in Shopify
- Flat rates – Set fixed costs like €5 per order.
- Price-based rates – Offer shipping based on order total. For example, free shipping on orders over €50.
- Weight-based rates – Charge based on total cart weight.
- Local delivery & pickup – Offer location-based delivery or customer pickup options.
While Shopify’s built-in tools are simple and useful, they come with limitations:
- No advanced visibility rules (e.g. show method only if product A is in cart)
- Limited ability to control pickup point behavior or show them at all
- Cannot group products for different shipping needs easily
- Lacks automation or rate overrides by specific conditions (like product tags, line item properties, or product type)
2. Using third-party apps like Packrooster Shipping
For merchants with more complex shipping needs, third-party apps provide more control and flexibility.
Why use Packrooster Shipping?
Packrooster Shipping allows you to:
- Set advanced shipping rules based on product, weight, price, customer location, tags, and more
- Display carrier pickup points directly in the Shopify Checkout
- Create custom rate logic, such as hiding certain shipping methods for specific products or destinations
- Connect directly with carriers like DHL, UPS, PostNord, Helthjem, Budbee, Matkahuolto and many others
- Support multiple currencies and Shopify Locations
Using Packrooster, your store can provide smarter shipping options tailored to customer needs without compromising efficiency or accuracy.
➡️ Learn more and install Packrooster Shipping
Best practices for setting up shipping rates
Whether using Shopify’s built-in settings or a third-party app, follow these best practices to ensure a smooth customer experience:
1. Be transparent about costs
Avoid surprises. Show shipping rates clearly before the final checkout page. Unexpected fees are one of the top reasons for cart abandonment.
2. Offer free shipping thresholds
Encourage larger orders by offering free shipping for purchases above a certain value. A study from Statista shows that 48% of customers are more likely to buy more to get free shipping (Statista).
3. Include pickup points
In many countries such as the Nordic and Baltic countries, pickup points are often the preferred delivery method. Letting customers choose their pickup point can drastically improve satisfaction.
4. Use tiered shipping options
Some customers care about speed, others care about cost. Offer both economy and express options to let them decide what’s best for them.
5. Keep it simple
Don’t overwhelm customers with too many choices. Show relevant options based on what’s in the cart, location, or other criteria.
6. Account for packaging and handling costs
Make sure your rates cover the actual costs, including materials and any additional carrier fees.
7. Test different rate strategies
Try free shipping, flat rate, or real-time carrier rates and monitor how they affect your conversion rate. Tools like Google Analytics and Shopify’s built-in reports can help.
Summary: which option is right for you?
| Feature | Shopify Settings | Packrooster Shipping |
|---|---|---|
| Flat rates | ✅ | ✅ |
| Price and weight based rates | ✅ | ✅ |
| WMS connection | ⚠️* | ✅ |
| Carrier pickup points | ⚠️** | ✅ |
| Advanced visibility filters | ❌ | ✅ |
| Automations | ❌ | ✅ |
| Barcode-based fulfillment | ❌ | ✅ |
*Only name based mapping.
**Very limited support for carriers and locations.
If your store has simple shipping needs, Shopify's built-in features are a great starting point. But if you need more control, automations, and precision, Packrooster Shipping gives you the tools to build a best-in-class shipping experience - all within Shopify.
Need help optimizing your shipping setup?
Get in touch with our team or try Packrooster Shipping in your store to see how much easier and faster your fulfillment process can become.
