I'm trying to set up shipping for my store. Some products are made in my studio and can be shipped nationwide in US or hand delivered only in my local city. Other products are dropshipped from various dropship companies and can only be shipped. How do I set up so that if someone is located in my city but orders product that can only be shipped from dropshipper does not see local delivery rate? Or if someone located in another city but orders product that I make will only see shipped rates? Thank you.
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I'm happy to help you get your shipping settings just right. It sounds like your biggest concern is making sure that customers only see the option to select shipping (without the choice of delivery) if they (1) order dropshipped products, or (2) live outside your city. If so, this is definitely achievable, and may already be the expected behaviour of your shipping settings.
(1) When your customer orders a dropshipped product...
(2) When your customer lives outside your city...
If you're curious, we have more details available here on the customer checkout experience, including the requirements any cart will need to meet in order to be eligible for delivery.
I also recommend playing around with your own checkout to observe how your delivery options change depending on the products you choose and/or the shipping address you enter. For example:
From this we can see how different factors impact your customer's delivery options. It's worth keeping in mind that currently it's not possible to combine delivery methods within one order - that is to say, your customer will not be able to have some items shipped and others delivered (at least as far as your checkout and admin are concerned).
I hope I've managed to clarify some of your concerns here - that said, take the time to experiment with your checkout and please don't hesitate to let me know what questions come up for you along the way!
In addition to the great answer by June, you can also use this app: https://apps.shopify.com/shipping-by-map for the local delivery option.
You set a special shipping profile for the items that you dropship (so that orders with these products don't see the local pickup option), and then in the default profile you activate the app option so that customers inside the area you set will see the local pickup option.
Hope this helps,