I have a question regarding this and hopefully it makes sense. I wanted to make sure that I was using the shipping correctly so I did a test run as a customer and made a purchase.
The "Customers" shipping costs at check out were $43.45
Then Shopify sent $41.89 (from what the customer had paid)
Then Shopify Charged the cost of the label as $57.53
Why are all of these numbers different? Shouldn't the charge to the customer and the amount shopify charges me be the same ? I don't understand the difference to what was charged the customer.. I understand I may have only gotten 41.89 out of the 43.45 due to taxes/fees but why am I being charged $57.53 (especially considering supposedly shopify offers discount rates for printing thru them ? Canada post directly would have only cost around $42.00 which is near the $43.45.. but again... no discount and I was charged an extra $14 on top of that? )
Thanks for clarification.. Need help figuring this out so i'm not eating shipping costs.
Ok to answer your query, it is important to know that shipping rate calculation varies when you use :
- only weight
- weight and dimensions
In your case, the initial rates were calculated based on weight and hence shown at checkout. Once the order came to you, after that if you remember, you had provided dimensions and weight of the package. with these details, a set of new calculations triggered and hence there was a change in the shipping rates.
If you are looking at getting uniform shipping rates based on packages at both checkout as well as fulfilment, then you can opt for the Multi Carrier Shipping label app. With this app, rates at both checkout as well as during fulfilment will be the same.
Hey @PKandil ,
The reason you are facing this discrepancy is because Shopify only offers one box size to be sent off to carriers, but shipping carriers charge based on the more expensive of either the dimensional weight or the weight of the item. Many merchants aren't aware of this since Shopify gives you the option to input multiple box sizes, though this is for fulfillment (when you actually ship the parcel), not customer-facing calculation (at checkout when you charge the customer).
In your case, I imagine that the box size you fulfilled with (the box you actually sent the parcel in) was larger than your default box size in Shopify. This would explain why when you actually shipped the order the cost was $15.64 more than what you charged the customer.
Since shipping is a reality in your store and it's silly to charge incorrectly when your differences are this drastic, I encourage you to try Intuitive Shipping and our proprietary SmartBoxing algorithm. With this feature, you can assign dimensions for all of your product sizes, the box sizes you fulfill in, and then at checkout the algorithm will calculate the appropriate size, weight, and number of boxes required for an order. In most cases, this means that your customers are charged exactly what you are charged, though since you use Shopify to fulfill, the cost charged to your customer will be slightly higher (this works in your favour). Unfortunately, Shopify doesn't give apps access to their discounted rates, though you are able to take advantage of them when you go to fulfill. We do have some merchants add in a % discount to match them - it's totally up to the merchant!
If you would like to learn more, I encourage you to book a demo and one of our team will be happy to give you some more information. We're free to install and also offer a 14-day live trial, so you can always go straight to trying us out!