How to Enable Carrier Calculated Shipping on Shopify: A Comprehensive Guide for Merchants

Table of Contents

1. Introduction
2. What is Carrier Calculated Shipping (CCS)?
3. The Benefits of Using Carrier Calculated Shipping
4. Pre-requisites for Enabling Carrier Calculated Shipping
5. Steps to Enable Carrier Calculated Shipping
6. Connecting Carrier Accounts to Shopify
7. Integrating with Third-Party Shipping Apps
8. Marking Up or Discounting Calculated Shipping Rates
9. Conclusion

Introduction

Did you know that 87% of consumers will abandon their cart if shipping costs are too high or unclear? In an era where e-commerce is booming, optimizing shipping options can significantly influence customer satisfaction and retention. For Shopify merchants, this translates into not only creating a seamless shopping experience but also ensuring that shipping rates are accurate and reflective of the real costs involved. This is where carrier-calculated shipping (CCS) comes into play.

As we focus on how to enable carrier calculated shipping on Shopify, we’ll explore its importance in today’s competitive online marketplace, particularly for those selling digital products, online courses, or any merchandise requiring complex shipping calculations. Our objective in this blog post is to outline the steps necessary to activate this feature, discuss its benefits, and elevate your Shopify store's operational efficiency.

At Tevello, we understand the challenges that merchants face when navigating multiple platforms for different facets of their business. That’s why our all-in-one solution integrates course management, community building, and digital product sales directly within the Shopify ecosystem. By the end of this post, you’ll have a clear understanding of carrier-calculated shipping, and how adopting it can fuel your revenue growth and streamline your operations.

Are you ready to transform your shipping strategy? Let’s dive in!

What is Carrier Calculated Shipping (CCS)?

Carrier Calculated Shipping refers to a feature that allows merchants to display real-time shipping rates at checkout, calculated by third-party shipping carriers. When a customer places an order, the CCS feature calculates the exact shipping charges based on various factors, such as:

• Package dimensions
• Shipping destination
• Service level (e.g., overnight, standard)

This ensures that the customer pays the actual shipping costs, reducing the risk of surprises during the checkout process. Implementing CCS not only enhances transparency but also helps you maintain competitiveness in pricing.

It’s essential to note that CCS rates are available only on specific Shopify subscription plans. Merchants on the Basic plan will have to upgrade to at least the Shopify plan or pay a monthly fee to utilize this feature. At Tevello, we believe that empowering merchants to find solutions that streamline their processes is vital for sustainable growth.

The Benefits of Using Carrier Calculated Shipping

1. Accurate Shipping Costs

One of the most significant advantages of utilizing CCS is the accuracy of shipping cost estimation. Instead of relying on flat rates or estimations, customers receive precise shipping costs right during the checkout process. This accuracy helps:

• Build trust with customers
• Reduce abandoned carts due to unexpected shipping fees
• Ensure you cover your shipping costs at a minimum

2. Improved Customer Experience

When customers know that shipping rates are calculated in real-time, it minimizes confusion and enhances their overall shopping experience. We know that a positive shopping experience leads to repeat purchases, nurturing customer loyalty over time.

3. Enhanced Competitive Edge

In today’s e-commerce landscape, offering competitive shipping rates and options can make or break a sale. By providing customers with accurate, real-time shipping costs, you are equipped to stay competitive in the market. This competitive edge often translates to higher conversion rates.

4. Flexibility in Pricing Strategies

With CCS, merchants have the ability to adjust shipping rates—whether to mark them up or discount them based on their pricing strategies—allowing for greater flexibility in operations. For example, if shipping becomes too expensive, a merchant can opt to discount the shipping rate to attract customers.

5. Easy Integration with Shipping Carriers

Shopify supports integration with numerous shipping carriers, including UPS, FedEx, DHL, and more, allowing for seamless connectivity. This flexibility enables you to select the most beneficial shipping providers based on your business needs.

Pre-requisites for Enabling Carrier Calculated Shipping

Before diving into the steps for enabling CCS in your Shopify store, it’s essential to ensure you meet the necessary requirements:

1. Shopify Plan: Ensure your Shopify plan supports carrier-calculated shipping. CCS is included in:
   • Shopify Advanced
   • Shopify Plus Alternatively, you can add it as an add-on for the Shopify plan if you opt for annual billing.
2. Establish Shipping Profiles: Set up your shipping profiles and zones according to your business needs. Different products might require different shipping zones based on weight and destination.
3. Weights of Products: Before calculating shipping costs, you must ensure that all products have accurate shipping weights, as they directly affect shipping calculations.
4. Connect to a Shipping Carrier Account: If you wish to use your own carrier accounts for CCS, you must integrate them with your Shopify store. This opens up additional options for real-time shipping rates.

Steps to Enable Carrier Calculated Shipping

Now that you understand the benefits and prerequisites, let’s go through the detailed steps for enabling carrier calculated shipping in your Shopify store.

Step 1: Check Your Shopify Plan

First, you need to establish whether your Shopify plan qualifies for CCS. If you’re on the Basic plan, you will need to upgrade to at least the Shopify plan or pay an a-la-carte fee. Check your plan details from the Shopify dashboard. If you’re ready to move forward, consider exploring our simple, flat-rate pricing model at Tevello to maximize your business potential!

Step 2: Access Shipping Settings

1. Log into your Shopify admin panel.
2. Navigate to Settings and click on Shipping and delivery.

Step 3: Manage Shipping Profiles

Once in the shipping settings:

1. Find the shipping profile you wish to edit or create a new one.
2. Click Manage rates next to the relevant profile.

Step 4: Add Carrier-Calculated Rates

1. Under the appropriate shipping zone, select Add rate.
2. Choose Use carrier or app to calculate rates.
3. Select the shipping service (e.g., UPS, FedEx) from the dropdown menu. Ensure you’ve previously connected your carrier accounts (covered in later steps).

Step 5: Select Shipping Methods

In the Services section, choose the methods offered by the selected carrier that you want to provide at checkout. This can include express, standard, or overnight shipping options.

Step 6: Optional Handling Fees

If necessary, add any handling fee in the Handling fee section. This fee can be a percentage or a flat dollar amount added to the calculated rate.

Step 7: Complete Configuration

Click Done and then Save to finalize your setup.

You’re now equipped to display accurate shipping rates to your customers during checkout!

Connecting Carrier Accounts to Shopify

To utilize carrier-calculated shipping effectively, you need to connect your shipper accounts. Here’s how to do it:

Step 1: Go to Carrier Accounts

Navigate back to Settings > Shipping and delivery and scroll down to Carrier accounts.

Step 2: Connect Your Carrier Account

1. Click on Add carrier account and select the appropriate carrier (e.g., UPS, FedEx, Canada Post).
2. Enter the required account credentials. Be sure to double-check these details for accuracy.
3. Confirm connection and allow Shopify to access the carrier’s services.

Step 3: Verify the Connection

Once the account is connected, run a quick check to ensure that Shopify is able to pull rates from the designated carrier correctly.

At this point, if you have not done so already, ensure that all your products have accurate weights assigned to them—this crucial step is essential for calculating shipping costs accurately.

Integrating with Third-Party Shipping Apps

If you desire more functionality or wish to connect with multiple shipping carriers, you might consider using third-party shipping applications available in the Shopify App Store. Here’s how to set them up with carrier calculated shipping:

Step 1: Install the App

1. Go to the Shopify App Store.
2. Search for reputable shipping apps such as:
   • FedEx Ship, Rate & Track app
   • Multi-Carrier Shipping Label app
   • Australia Post app
3. Click on the app and follow the installation prompts.

Step 2: Enable the App

After installation:

1. Navigate to the app settings.
2. Follow the prompts to enable it for your store.

Step 3: Configure Carrier Services

In the app settings, enable the desired carrier services that correspond with your needs. Ensure that they are configured to display rates at checkout.

Step 4: Test Your Setup

Today’s customers expect transparency—run through several transactions to verify that accurate rates display based on product dimensions, weights, and shipping zones.

Marking Up or Discounting Calculated Shipping Rates

With carrier-calculated shipping, you can exercise some control over the displayed rates. Here’s how to adjust the rates based on your business strategy:

Step 1: Edit Shipping Rates

1. Navigate back to Settings > Shipping and delivery in your Shopify admin.
2. Select the shipping profile you wish to adjust.

Step 2: Choose the Rate to Edit

Next to the calculated rate you want to adjust, click the ... button and select Edit rate.

Step 3: Set Rate Adjustments

In the Handling fee section, you can set up an additional flat fee or discount it, achieving a new calculated rate for your shipping charges. Additional manipulations can be configured as percentages based on your pricing strategy.

Step 4: Finalize Changes

Click Done and Save your changes. It’s recommended to regularly review and adjust these rates according to shipping costs in real-time.

Conclusion

Embracing carrier calculated shipping can significantly bolster your Shopify store’s efficiency and enhance customer satisfaction. By ensuring accurate rates and empowering your customers with choices, you create a more engaging shopping experience that not only encourages checkouts but boosts your overall brand image.

At Tevello, we are dedicated to empowering Shopify merchants like you to unlock new revenue streams through a complete suite of tools for online courses and community building. Our mission is to eliminate the complexities of managing multiple platforms, allowing you to focus on what truly matters: growing your business.

To unlock the full potential of your Shopify store, we invite you to start your 14-day free trial of Tevello today.

FAQ

1. What Shopify plans support carrier calculated shipping?
Carrier calculated shipping is available on Shopify Advanced, Shopify Plus, and can be added to the Shopify plan either as a part of annual billing or as an add-on for a monthly fee.

2. How do I connect my carrier account to Shopify?
Log into your Shopify admin, navigate to Settings > Shipping and delivery > Carrier accounts, and follow the prompts to link your shipping carrier account.

3. What are the benefits of using carrier-calculated shipping?
The primary benefits include accurate shipping costs, improved customer experience, enhanced competitive edge, flexibility in pricing strategies, and easy integration with various shipping carriers.

4. Can I use third-party shipping apps with carrier calculated shipping?
Yes, you can integrate third-party shipping apps such as FedEx Ship, Rate & Track or Multi-Carrier Shipping Label to utilize their services for carrier calculated shipping.

5. How do I adjust calculated shipping rates in Shopify?
Go to Settings > Shipping and delivery, select the shipping profile you wish to edit, click on the rate you want to change, and adjust fees as necessary.

For more detailed insights on how to maximize your Shopify operations, be sure to explore our powerful, all-in-one feature set for course creation, communities, and digital products.

We hope this guide has empowered you to take the next steps in enabling carrier calculated shipping for your Shopify store. Start implementing these strategies today to enhance your customer experience and grow your business!