Shopify Shipping Walk Through

by Andrew Cox March 27, 2017

Shopify shipping

Matt: Hi everyone, I'm Matt from The Hope Factory and joining me is Raksha.

Raksha: Hi!

Matt: Raksha has been working with Shopify for over 5 years and has been part of building probably over 300 stores, so it's great to have you in here to talk about a few things that we can help people with.

Raksha: Yup.

Matt: And I think one of the things that people get a little bit stuck on is when they're looking at setting up their shipping in their online store.

Raksha: Yup

Matt: It can be a little bit of a complicated process.

Raksha: Yes.

Matt: So what are some of the things that people need to think about when they are thinking about how they are going to do this, setting up shipping in the actual Shopify store?

Raksha: So the first thing they have to keep in mind is the product they sell. If they are selling heavy goods example, tables, it comes with dimensions

Matt: Yes.

Raksha: And the weight, so all of those can count and how you're going to set up the shipping in Shopify.

Matt: Okay.

Raksha: Yes.

Matt: So I guess you've got as you say with those people who have heavy products, you might have some issues because you can't just use one company to actually courier your goods or send your goods, and obviously the cost will vary as you say, depending on the weight and the dimensions. So how do you suggest that people can work that out in terms of setting up the shipping? 

Raksha: So there's plenty of extensions, plenty of apps which have been provided by a few shipping companies.

Matt: So when you say apps, just maybe can you just talk a little bit about what's an app, when you say an app? What is that?

Raksha: App is something which Shopify is provided to use instead of going and doing a hard code.

Matt: It's a program I guess that a company makes that you can plug into your Shopify store.

Raksha: Yes, that's right. And then as soon as you go example, you're using a heavy goods item and you don't know what shipping company to use, or you're using one shipping company and you don't know how you're going to integrate with Shopify, so it also depends on the location you are. If you're based in Australia, there's plenty of apps, which as been made into one like all the shipping companies in one app, so it kind of gives you all the ideas of how you can go and how much it’s going to be charging you for this amount of goods you're going to sell or deliver or send, with the dimensions they are in and how heavy they are.

So that's all a matter of which company you're dealing with, and then telling them this is the app you're going to use and then they are going to just use the synchronization with the API.

Matt: So in terms of the weight as you describe it. When someone orders a particular product and do you go and actually set in the back end with the product what the weight of that is, how is that sort of?

Raksha: So, when we go inside of any product in Shopify, that’s all the setup process. So when we go through the set up process right at the bottom, there is a a product weight section. So you have to understand you have to put down your product weight, if it is in kilograms or it's in grams, how much it is. So you have to put that weight down there, so when you're going to go and do the shipping set up process that weight is going to be recalculated, that's how we calculate it in the checkout process.

Matt: And the dimensions? How is that sort of cut into it, how does that work?

Raksha: Dimensions, when we go and set up a shipping process, in the shipping set up process, at the bottom there's a dimension option.

Matt: Okay

Raksha: So you have to go and write down your dimension of one part which is the biggest size.

Matt: Okay.

Raksha: So that's how it's all going to be calculated.

Matt: Just another thing around shipping now, I know that one as an example is a big furniture company that I went to a Shopify meet up recently and they talked about the fact that on some of the items that they send to remote areas, they actually make a reasonably large loss on the shipping. Now and I guess that’s also partly it's simplifies the shipping a little bit, and I have so many options because there is a little bit of work that goes into setting up.

Raksha: Oh yeah. 

Matt: All those shipping options.

Raksha: That's right.

Matt: But the way that they described it was when they actually sell to someone in a remote area and the person is happy with the product, especially in a small community, they tend to talk to other people and they actually tend to find they actually generate a lot more sales from that site, because people know they would deliver to that remote area. So I guess there’s other ways of thinking about shipping.

Raksha: That's right, yeah.

Matt: Now what about, you talked about obviously weight is one way of doing it. What's the other way, let's say if I'm just selling shirts and I don't really have to worry so much about the dimensions. What would be the normal way that people would set up their shipping for that.

Raksha: The other way of setting the shipping is by price, so if you’re selling example as you said you went to buy a shirt and you're not worrying about the weight of it, so what's going to happen is you go and buy a shirt let's say the shirt cost is $20, okay? And then you go and do a shipping set up process, in the setup process let’s say, any item above $20 is going to be $15 shipping.

Matt: Okay.

Raksha: So that's how much they are going to be charged if they are going to go through the checkout process.

Matt: Okay.

Raksha: Which is basically something which people prefer now.

Matt: Okay, in the shipping I think another important part to talk about when it comes to shipping is that you do see a very, with some stores where it's not clear what the shipping costs are, but if people get to that stage where they have added a few items and then actually go to checkout, and then the shipping gets added, they will actually abandon the cart, because they are not expecting to see that shipping. So what are your thoughts on that, I mean around sort of making it clear to people what the shipping costs are?

Raksha: I believe the best way of doing it is adding a shipping calculator in the cart page.

Matt: Okay.

Raksha: So what's going to happen is a person goes and buys items, like they go and add items in the cart and they go and click on the cart page and in the bottom there's a shipping calculator.

Matt: Okay.

Raksha: They go and choose, they put their zip code or there postal code, and then the () there and then the same time the shipping calculator is going to calculate how much you are going to be charged.

Matt: Okay.

Raksha: Yeah.

Matt: What about the idea though I guess from I was, oh that's a really good idea, but also I was thinking about on the home page if you do have any shipping offers, say free shipping over $50.

Raksha: Oh, yeah. That's another thing, because if those offers are displayed in the home page especially in the top header, because normally when you enter any website you start from the top, you don't go from the bottom. So there's something which you have to put on the top where people are attracted to. They'll say, oh! Wow! Free shipping over $100. Definitely they are going to go and buy an item.

Matt: And obviously you are hopefully encouraging people to purchase some more items to save on shipping and even though, I think it does work. I mean I've seen even, what about the idea of having free shipping, because someone might say oh! I'm going to lose money on my shipping, but that is quite a successful way of getting more sales.

Raksha: That's right, even shipping discount.

Matt: Shipping discounts, so how would that work often?

Raksha: So what's going to happen is we go and set up a discount in the back of admin saying that any person that buys any item over a hundred dollars they’ll receive free shipping discount with the code given.

Matt: Okay.

Raksha: Or sometimes what happens is you know the news that are pop up.

Matt: Yes.

Raksha: And there's information you can write and sign up for our newsletter to receive free shipping for any part of which is over a hundred dollars.

Matt: Okay.

Raksha: And then they received this discount code in their email and they use that code and they get free shipping.

Matt: Yeah, because I think everyone likes the idea of getting you know a little bit of a good deal and free shipping.

Raksha: Who doesn't like it.

Matt: That's right. What about the other thing around the shipping and taxes?

Raksha: The shipping and tax both work really together, so when we go and set up shipping, let's say for example, this international shipping and nationwide shipping.

Matt: Yeah, okay.

Raksha: So if you're based in Australia and we go and set up a shipping let's say a flat rate, express shipping and then international shipping, any international countries is $20, so when you put any country and then save it. You go down to another menu which is called tax, it automatically pulls all the countries you have added and adds the tax in there.

Matt: So is that because what you're saying is if someone and obviously it's great if you can sell overseas, it's a big market if you are selling to people all around the world, is that because if someone overseas is buying it, they dont pay any tax on the shipping, is that why you told me that, is there's no GST let's say on the shipping?

Raksha: So that's one thing which is important because when we go and click on taxes there's two options you know to always you know tick.

Matt: Yup.

Raksha: One is, is the tax including in your product price.

Matt: Yes.

Raksha: Another one is are you going to charge tax in your shipping.

Matt: Right, okay.

Raksha: So those two options you have to choose from those in order to know what's going to be the next actual shipping cost.

Matt: Okay, so you do set it up different, so if it's shipping in Australia there will be GST on the shipping because you have to charge GST. If it's an international order you don't charge a GST on the shipping, so there's no tax?

Raksha: Yes.

Matt: Okay, so that's important to have that set up correctly.

Raksha: Yes, that's right.

Matt: And is that hard to set up?

Raksha: It's just a matter of clicking buttons. 

Matt: Okay.

Raksha: That's it.

Matt: So maybe we can show people a bit about the way this is set up in this little video after this.

Raksha: Oh, yeah.

Matt: Yeah.

Raksha: Definitely.

Matt: Okay, great.

Raksha: In this video I'm going to show you how you can go and update your shipping and tax. So when you log in to admin, you have to go the settings. In the settings you'll see there is another set of menu's opening, so go and click on shipping. When we click on shipping, we'll see this is the shipping which has been set up, some of the shipping are done as default when you open up your store, so let's go and update the shipping.

So now I want to go and update the domestic shipping that is in Australia, so let's click on edit. So you can update the zone name to domestic or any name you like, you're going to also change the country to the country you want. There are two kinds of shipping that you can update, one is based on weight, another one is based on price.

So let's go and do the price based. So we can say free shipping, do orders of a hundred dollars, and then done, so if anyone is going to buy items which are $100 and above, they're going to get free shipping.

So what if you don't to want give the free shipping and you want to, if anyone buys any item which is let's say, $75 less than $25, they have to pay $15 fee for the shipping, so what you can to do is let’s say flat rate, it depends, we can name that in any way you want. You can set $0 to $75 and it's going to be $15 and done. So what's going to happen is, if anyone who is going to buy any item which is between $0 to $75 and that's the amount which is in the cart, they have to pay $15 fee for their shipping. So this is how the shipping is saved done.

So I'm now going to save, you can always remove the weight base, if you are just doing the price based. Now Let’s go to the shipping again, so can you see the rest of the world here, so you can always go and edit, so I'm going to go and edit. Rest of the world, so it's showing you 239 countries, let's say for example if you are using PayPal, PayPal doesn't allow for your countries payment, so what you have to do is simply go to click add countries and then you can choose the country you want to add, so I want to add Canada, I want to add United States, but I don't want to add Mexico, let's say I want to add UK and then I'll go down and add Croatia, I want to add Denmark, so that's how you can go and choose the countries. Okay, there's so many countries here and then you can go and click on add and then save.

So just keep an eye on the countries that I have added, this is just to show you how the tax is going to be done. Now, that's the countries and that's the amount of the shipping you're going to charge, you can always go and add the shipping as price based.

Now when we click on tax ,can you see all the countries has been added here automatically, so Australia having 10% country tax rate, Canada, Croatia and all these other countries are not having the tax, and you can always go and update their tax, example go on click on United States and then you can write down the state name, or you can choose, say for example I'm going to choose Arizona and you can write down the zip code and then add tax after that.

Thank you for watching this video. Comment if there's any questions that you have.

Thank you, bye bye.

Andrew Cox
Andrew Cox

Andrew Cox is the founder of The Hope Factory. He loves helping entrepreneurs grow their e-commerce businesses online via great design, strategic marketing and conversion optimisation. In his spare time, Andrew enjoys running (slowly) with his best friend Nelson.

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