My locations settings are making me uncertain about checkout and fulfilling orders. I haven't launched yet. I deactivated my home address as the default location, and added one of the distributors (Chinabrands) as the default shipping from location. I'm doing free shipping, with the price of shipping included in all product prices so it's easier. Does this mean that an order at checkout is going to appear that it's shipping from Chinabrands even when it's a product that isn't? I had a free shipping option under shipping rates, but had an error once when testing a fake order. I'll try it again, but I think I need to deactivate or delete all the shipping from locations to get this set correctly.
Jason here from Shopify Support. Nice to hear from you again!
Since you're doing the dropshipping business model, your default address is your home/business address, not the distributor's. Once you've done switching the address back, clear all your shipping zones and follow the steps below to create your free shipping strategy.
A side note on the Locations setting, you don't need to set up multiple locations at Locations section in Settings. This is just a reference for what your Locations section should look like.
After the zone is created, do a test order again. On the checkout point on the shipping options page, there will be only one selection for your customers: Free shipping. Let me know how it goes!
Sounds good. Just remember that in the final settings, you only have one location (your home/business address) and one zone that contains all the countries you're planning to ship to with only one free shipping rate set at the price based rates. Then you're good to go. If you're still seeing error messages after that, feel free to reach back out. I'd love to take a closer look for you.
I changed back to my home address in Locations. Shipping is set to Unites States (all selected). Since I'm primarily dropshipping from China, or overseas, do I need to include tax with all shipping, or charge tax on shipping rates? I'm including the cost of shipping in every product. How do I know which states charge tax on shipping?
Awesome! Just want to double check, did the shipping testing go well without a glitch?
Great question about the tax settings. Since you've entered your home/business address as the default address, that's where the tax calculation will be based on. Since you're offering free shipping for your products, you don't need to charge tax on the shipping rates (there won't be any shipping rates). The typical setting is like the following:
As you probably know, in the US, each state collects the taxes a little differently. Here's a general guide on how the taxes are collected in each state. Inside the guide, follow the set up of automatic tax rate section to set up your taxes for the store. If you have more questions on taxes, I recommend you consult with your local accountants/tax experts. They will be more equipped to answer your business taxation questions.
All the best,