how does shopify calculate shipping

hey guys welcome back to my youtube,channel so today we are going to talk,about the different shipping options on,shopify and kind of like what they mean,so this will help you decide which one,will work best for your,small business your shopify account,because when i did that video recently,on how to set up shopify,shipping and all that stuff i got,questions about like what,they specifically mean so if you need a,little bit more help,it's okay i'm gonna get into it today,now i will be giving you some tips,on some things i think you should try to,implement first and kind of,how you should work around that um i,will be sharing that with you guys so i,will be helping you out giving you some,tips,there are different types of shipping,methods so there is you can either set,up free shipping,now free shipping is pretty obvious it,just means that your customer doesn't,pay for shipping,and usually to compensate free shipping,your items are priced a little bit,higher,or you buy such in bulk that your items,are so,cheap because you're paying so much less,you can raise your price to a regular,amount and you're gonna make a big,profit so,shipping isn't really an issue now this,next one is kind of i think where people,get a little bit more confused,so shopify offers a calculated shipping,rate,now what that means is shopify will,automatically take into consideration,the weight of your item so,you're going to need to put that in the,weight of your box,or your shipping items that you use,they're going to calculate that,when you want to ship it by who you're,going to ship it to,that whole thing they are automatically,going to calculate it and give your,customer,a rate to show them how much they need,to pay,so this is actually really common like,for example if you shop on my store i do,have calculated shipping,and it's going to vary i also here you,can also offer a variety of shipping,options,so like for me i have usps like regular,shipping,a ups option because some people don't,want to use usps right now,here you can also offer like priority,mail next day,this is if people want to pay your,customers want to pay for that option,it's available to them so this is,probably a really common one and it's a,great tool that shopify offers,i really really like it so i wanted to,talk about,some of the shipping rates,here when you do um calculated shipping,just because i got some questions about,that so,autumn there's a ship there's a handling,fee so i don't know if you guys have,ever tried to order from online and,they're like,there's a shipping and handling fee but,there's free shipping,so really what a handling fee is is if,you would like to charge your customers,for like packaging your items,um i will say it's just a nice little,tip,i kind of always add a handling fee now,whether you want that to be a percentage,you want that to be a dollar amount for,me and my small business,this is also a little cushion to make,sure i'm getting money,for shipping because sometimes i'm going,to say the shipping,calculated shipping is not 100 right and,let's see after i add in all of the,items and then i'm like,okay i need to pay a little bit out of,pocket for this,that handling fee always kind of gets me,just to make sure that i'm covered,for shipping so i hope that that makes,sense to you always with shipping you,can,kind of see where your customers feel,comfortable paying,i also would recommend checking out,other small businesses and see how their,shipping is set up,just to kind of get a feel i know people,tend to,be okay with paying more for a small,business but you definitely don't want,your prices to be so high that they just,run away and they don't want to pay at,all because of the shipping so that's,kind of why where if you would like to,do free shipping and your prices are a,little bit higher,people think well i'm willing to pay,this because i'm going to get free,shipping so,it's kind of like you need to see what,works best for your customers,now one thing that i really really like,when it comes to setting up your own,shipping rates,this is where you can do like spend over,50 get free shipping,um or let's say you are gonna do free,shipping if you buy,a pound of product that's something that,you can,customize there under your own shipping,rates which is really cool,you could do based on item weight or,based on price,so like for me on my shop if you spend,more than 40,you get free shipping so the reason why,this is helpful and you might think well,you know what,i don't want to give them free shipping,because that's,like less money for me but the thing is,you have to think about when people,are buying more product than they not,they normally wouldn't be,it's going to kind of cover that,shipping so let's say i checked out and,my,shipping was like i have to spend 10,more dollars and i'm sure you guys have,done this before when you're on a site,and they're like you're only 10 more,i ten more dollars away from free,shipping you're kind of thinking you,know what,yeah i'm gonna get that free shipping,i'll just spend 10 more dollars,when you normally wouldn't have spent,that,much anyways so what this does is it,increases your,overall cart value which is really good,because it just means that you're making,more money so sometimes that option can,be really cool really helpful,um i personally i will look at your cart,average and then see like how much,people are just paying normally for your,products,and then try to maybe go up ten dollars,more or five dollars more and see how,that goes for your shop now let's say,nobody gets up to,the amount then it might not be worth it,at all for you to do,a free shipping promo like that so some,tips that i have for you when starting,out so i'm going to be honest,international shipping can be very,complicated it can be kind of hard to,figure out,i'm going to be honest i don't even have,it 100 figured out now because sometimes,i have,items that i've set up for calculated,shipping and then for some reason when,it gets to customs i have to end up,paying more or something like that so,it's not something that i'm 100,confident in right now,i am offering a flat rate shipping fee,for my international customers,and i'm going to be honest i only maybe,have had like 10 international sales,so it's not something where my customers,aren't really international most of my,customers are here in the united states,which leads me to my next tip i highly,recommend if you're just starting out,just go in the united states,it's a lot easier and it's a lot less of,a hassle to try to figure out how to do,international shipping,another huge thing i see a lot of small,businesses not doing and it's,a safety thing i think it's something,that you need to be doing,is using a po box or a suite or,a unit number something other than your,home address,for your return shipping address you do,not want to give random people,your address it's just not safe and it's,not a good idea,so for me personally i use a p.o box you,can even just rent the smallest size po,box at your postal service,because most likely you're not going to,get anything in there you just want to,make sure,that you have a place of like residence,for your business,so in case like someone's pissed off,with your product or something and they,want to come pull up you're safe,okay it's just it's just safety things,anyways like let's say one day your,business blows up or something and,you've been giving all these people your,home address like,that's not a good idea don't do that,that's gonna be like,it's safety it's safety sometimes when,you guys send me free promo and i see,your home address i'm like oh don't do,that don't do that that's so bad don't,do that protect yourselves you guys be,safe out there okay,so yeah you need to figure out what,works best for,your audience the weight of your,products the price of your products,how much do you spend on your inventory,is it worth to upset to up the price to,compensate for shipping should you,charge free shipping it's going to be,completely up to you as you guys can see,there's so many,options for me and my business i will,tell you i actually switched back and,forth right now i'm offering a five,dollar flat rate shipping promo,so that's what i'm doing right now but,it definitely changes and i like to keep,track and keep,record of what seems to be working best,for my small business and my items and,the prices,that work best for me i really,appreciate when you guys leave me,comments and ask me questions here,because then it helps me,create more videos for you see what you,guys need help with what i can help you,with,um let me know if you guys would like to,see anything else and anything else i,can help you with,good luck on your small business i'm so,excited for 2021 y'all we are about to,blow up,we're about to get this money we are,gonna our businesses are going to blow,up in 2021,are you ready make sure you guys follow,me on instagram if you aren't already,because i'm dropping small business tips,over there as well as here so make sure,you are subscribed and i will catch you,in the next video,you

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