Shopify Calculated Shipping Rate Estimator
Determine exactly what your customers should pay at checkout based on carrier rates and your custom markups.
Customer Shipping Charge:
$0.00
How Shopify Calculated Shipping Works
Carrier-calculated shipping (CCS) is a feature in Shopify that automatically fetches real-time shipping rates from carriers like UPS, FedEx, USPS, and DHL Express during the checkout process. This ensures that the customer is charged exactly what it costs to ship the item, preventing losses on shipping margins or overcharging customers.
Key Factors Influencing Your Rates
- Dimensional Weight: Carriers often charge based on the box size rather than just the weight. If your item is light but bulky, the shipping rate may be higher than expected.
- Shipping Zones: Rates vary significantly depending on the distance between your fulfillment origin and the customer's shipping address.
- Handling Fees: Many Shopify merchants add a small flat fee or percentage markup to cover the cost of packaging materials and labor.
Example Calculation
If your Carrier Base Rate for a 2lb package is $12.00, and you have set a $2.00 handling fee plus a 10% markup to account for price fluctuations:
- Base Rate: $12.00
- 10% Markup: $1.20
- Handling Fee: $2.00
- Total Rate to Customer: $15.20
Setting Up Free Shipping Thresholds
A common strategy to increase Average Order Value (AOV) is offering free shipping over a certain amount (e.g., Free Shipping on orders over $75). This calculator allows you to input your threshold to see when the rate would drop to zero for the customer, helping you plan your profitability accordingly.