We have our UPS account hooked up to our Shopify store. We realized that the rate customers were paying for was way more expensive than our UPS Account rate when they were purchasing one item. We were scared this was driving customers away, so we looked into the issue. We toggled on the "negotiated rate" under the UPS shipping settings and the shipping rate was then closer to our account rate, so we thought we had figured out the problem.
However, we then realized an even larger problem. For each order placed with more than one item, the customer was paying way less than we were for shipping. (This goes for either the normal UPS Shopify account rate or with the negotiated UPS rate turned on.) Each product we sell comes in a large box that is heavier, so each time a customer buys more than 1 item, the order is then multiple boxes. Shopify and UPS charges for the total weight of products, but we pay for the weight of mutiple boxes on our UPS account when shipping. We've been losing money and need to have our rates fixed quickly!
I found a forum about this exact issue, but it was never resolved and then closed. Could someone please help?
Justin here from the Shopify Support Team :)
I have heard of Boxify as a solution to your problem with the multiple boxes and being over-charged when your order encoutner this: https://apps.shopify.com/boxify. I have reccomended it to a few Merchants and it worked for their needs. They do have a free trial as well :)
Look into adjusting your Carrier Caluclated Shipping rates, by either adding a dollar amount or percentage to the calculated rate. This Doc will walk you through it:
Hopefully this helps out & you can always let us know if you have any questions !
Justin | Shopify Support Guru
Shopify calculates shipping cost based on the total weight of the order. This is because majority of store owners are happy with shipping purely based on weight. However, for yours and similar other scenarios, it is a genuine problem of inaccurate shipping calculation because of inaccurate packaging. You can try the Multi carrier shipping label app which allows you to pack items based on the following options :
- weight limit : You can set a limit beyond which a new box will be selected for rate calculation.
- count of items : You can provide the count of items such that beyond the count, a new box will be selected.
Using the above should provide you accurate shipping costs.