I don't understand shipping at all. Please help.

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New Member
1 0 0

Hi, I have been researching shipping for a few days and everytime I think I understand the whole whole process a new piece of information confuses me all over again. For some reason this is difficult for me to understand so I have a few questions.

When do I pay the shipping price and how? When the customer pays the shipping it's just paid to me then I handle the shipping costs, correct? Im going to have 30-100 items to ship and I'm planning on using canada post or chit chats to come pick them up for me. All of my items are going to pre ordered. At what pointdo I pay shipping. Oh and I don't have a credit card. I have PayPal and a debit card, what are my options? I just don't really understand the process of payments and how to pay I guess. I find that very confusing even though it's probably so simple.

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Shopify Staff
Shopify Staff
576 20 186

Hey Haik,

Aria here, one of the Social Care Gurus at Shopify. :

When your customer places an order on your store, they will pay the cost of the product + tax (if applicable) + shipping costs. All of that will be paid out to you, minus the credit card charges (if you are using Shopify Payments). You will then have the option to purchase a shipping label in the fulfilment section of the order. We don't use Chit Chats but you can purchase Canada Post shipping labels at a discounted rate. In that case, we will invoice you for your shipping costs and they will be billed to the card you use to pay your Shopify invoice. This guide explains more about buying and printing shipping labels. 

You do have the option to purchase labels outside of Shopify but it may end up costing more. In this case, you would simply mark the order as fulfilled. 

Officially, we can only accept credit cards as payment for your invoice. You may find you can get a Visa or Mastercard debit card to work but we can't guarantee that is going to work. Some merchants have found their debit card works initially but later stops working as they are not intended for recurring charges. 

I hope this helps you out. I do understand, there is a lot to take in when you are building a store for the first time. 

Aria
Social Care Guru
Shopify

Aria | Social Care @ Shopify
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Tourist
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Any chance it would be possible for Shopify to retain shipping costs and have those funds used towards shipping labels?

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Shopify Staff
Shopify Staff
576 20 186

Hi Lori,

Aria again. :)

Currently, it's not possible for Shopify to retain your shipping costs to apply towards shipping. I believe it's unlikely this will ever happen for two reasons:

  1. There can be a discrepancy between the amount of shipping your customer pays and the amount you pay to actually ship the product. The amount should be close to the same but may not be identical.
  2. This function would be payment gateway dependent. Shopify Payments is a popular payment gateway but some merchants are unable to use it either because it's not yet available in their country or because they are selling products which can't be sold on Shopify Payments. When your customer pays for their product + tax (if applicable) + shipping, 100% of those funds go to your chosen payment gateway. The gateway retains the credit card fees and pays out the rest to you. 

When running a business it is normal to have operating costs. The best thing you can do is develop a bookkeeping system. Costs can include the following: 

  • Your monthly fee to Shopify
  • App fees (optional)
  • Product,
  • Advertising 
  • Shipping. 

I hope this makes sense. :)

Aria
Social Care Guru
Shopify

Aria | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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Tourist
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Hi Aria, thank you for your reply.

Obviously operating costs are part of running an online shop.  We just have an issue when shipping as we get to our daily threshold before we have shipped all orders. It would be nice to have an amount held back from Shopify Payments (for merchants that would like this) and applied to our account similar to how funds from a voided shipping label are held there. Likely there would still be an amount owing that Shopify would bill for, but it would create a shipping threshold for each store that is more in line with the amount of funds needed to ship all orders.

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Shopify Staff
Shopify Staff
576 20 186

Hey Lori,

I sent you an email regarding this. Please check your email account for the email address you use to log in to your Shopify store. If you reply to it, I will be able to send a feature request to our developers for you. It won't be a fast solution but it could be helpful to let them know the difficulty this is causing you.

I will look out for the response. :)

Aria
Social Care Guru
Shopify

Aria | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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Tourist
8 0 1

Thank you Aria! I will definitely reply to your email. 

 

Lori

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Shopify Partner
153 0 9

Hi,

Michael at fulfillrite here. (First of all, I know this is off-topic, but Aria, you did an awesome job walking through the answer to Lori's questions. Amazing customer service!)

I would just chime in with another approach completely: Lori, you might consider using a fulfillment center like Fulfillrite for your shipping. What you do is ship your products every few months to the fulfillment center, and as soon as a Shopify order comes in, the fulfillment center takes care of all the shipping, costs, etc. We here are extrememly transparent about our pricing, and I know that's important to you, so make sure that whichever fulfillment center you chose, you understand the costs up-front. We also accept PayPal as payment, which might make it easier for you. Besides for the other advantages of outsourcing your shipping, there might very well be significant cost savings using a US fulfillment center if you are shipping your orders in the US. Also, the bookkeeping is much more simplified as you just have one payment monthly to the fulfillment center which includes packaging, shipping costs, etc.

I hope this is helpful, and best of luck with your sales!

Michael from Fulfillrite

e-commerce order fulfillment made fast. simple. easy. www.fulfillrite.com
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New Member
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Hi Haik,

I understand your pain..when I first started with my online store, there were so many different shipping options..it was driving me crazy!

Since then, I've been doing all of my shipping with Chit Chats. Their international shipping is a lifesaver! Most of my items are under 1lb, so I'm able to use their USPS First-Class service which saves me around $10-11 per package in shipping compared to Canada Post. Not to mention, this also includes 2-4 day delivery + tracking..Chit Chats is a no-brainer!

They also recently integrated with Shopify and you can connect your Shopify store directly to Chit Chats which will allow you to print postage directly on their site.

Hope this helps! Good luck with your store!

- David

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Aria explained the process of shipping perfectly. As soon as the order is placed, the charges are paid by the customer which includes shipping and this money comes back to you via Shopify. A solution that can with hold that money and charge for shipping labels with it is a terrific idea. However, I am not sure this will be implemented any time soon. As the process is simpler the current way. There can be another way of looking at this. Suppose you are want a little more transparency. In that case you can use the Multi Carrier Shipping label app to generate shipping labels for your Shopify store and this app can provide you a weekly or a monthly report on shipping charges incurred. This way you will be able to match and verify the charges once a month with those from your Paypal account(this is used to generate labels from your carrier account). 

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