Shipping strategy - Your thoughts wanted!

[ilkkafromdaze]

I’m curious to learn how you guys are choosing and handling shipping strategies.

- Which shipping strategy are you using? (Flat rate, free shipping thresholds, carrier-calculated rates, mixed…)
- Why did you choose that approach? (Cost savings, conversion rate, competition, customer preference?)
- Have you made any changes that improved your margins or conversion, and are you interested in trying new strategies to save on shipping?

Thank you for your time to reply! Much appreciated 🙏

[Dotsquares]

hi @ilkkafromdaze 

Thanks for reaching out shopify community. 

Generally shipping policy offers free shipping levels and carrier-calculated rates depending on the value of the order and the destination.

The Reasoning Behind Our Chosen Strategy:
Free shipping thresholds drive higher order values and improve conversion rates. Customers place more items in their order to receive free shipping.
Carrier-calculated rates help us avoid overcharge or undercharge for shipping, particularly for global orders.
This blend enables us to be competitive and balance customer satisfaction and cost saving.
Upgrades That Boosted Margins and Conversion:
A/B tested other free shipping thresholds and discovered the slight threshold increase boosted average order value while not sacrificing conversions.
Negotiated reduced shipping rates from carriers upon reaching a specific shipping quantity. Regional delivery and local pickup were introduced to reduce delivery time and expense.

[shipperhq-dave]

Hi @ilkkafromdaze - Great question. Here are my 2 cents on it.

Each shipping strategy has its place depending on your goals and business model. Here’s a quick breakdown:

• Flat Rate: Ideal for stores with uniform product sizes/weights or when you want to keep things simple and transparent for customers. Great for AOV (Average Order Value) predictability.

• Free Shipping Thresholds: Perfect for encouraging upsells. Use this when you want to drive higher cart values while still controlling margins—just ensure the threshold makes sense based on your cost to ship.

• Carrier-Calculated Rates: Best for when accuracy matters—think multi-SKU carts, varying sizes/weights, or international shipping. This keeps you from overcharging or undercharging based on real-time carrier data.

• Mixed Strategy: Often the smartest approach. Offer free shipping over a threshold, but fall back to real-time rates for larger or expedited orders. Tailor it by product, location, or shipping group to balance cost and customer experience.

Hope this was helpful.

Best,

Shlok