Help getting around USPS automatic insurance

Shopify Partner
1 0 0

Hi, we're trying to switch from shippo to shopify for labels so we can use shopify flow to help streamline our workflow (shippo doesn't allow users to sort orders by tags). Anyway, we use usps for all our shipments, and both label services appear to have the exact same prices for first-class labels.

The thing is, for priority labels, shopify is up to 50% more expensive than shippo. This appears to be because shopify automatically adds $100 in insurance to all priority shipments while shippo does not. Regardless, we can't stay profitable with that kind of increase.

So, has anyone dealt with this issue before, is the insurance really the cause, and is there a way to get around it?


Shopify Partner
553 1 21

A good way to get around this problem is to use a solution that makes insurance optional and also provides cheaper rates. The former is freely available among many solutions, the latter is almost impossible as Shippo and Shopify are the two cheapest options. However, if you start using your own account and ship some volume for a couple of months. Then there may be a chance to get better discounted rates from them. If you do get a chance to ship using own account and want insurance as optional, you can try the Multi Carrier Shipping label app for this purpose.

Product Owner @ PluginHive
Shipping Automation | FedEx shipping | Multi-carrier shipping | Shipment Tracking | Australia Post shipping