Why am I charged an additional fee when creating a shipping label?

Cadas13
Visitor
1 0 0

Ok so when the customer checks out they get charged a shipping fee and then when I go to create the shipping label I get charged another fee. Why am I getting charged a fee on top of what the customer is getting charged

Reply 1 (1)

Dirk
Shopify Staff
2217 247 506

Hey, @Cadas13 

 

Great question. It's one that commonly gets brought up amongst new business owners. Luckily, there is a very simple explanation.

 

Essentially your store is set up so that the customer is charged for shipping on top of their items. You are technically profiting off the order + shipping at the time of the order. 

 

Then when you go to create a shipping label, you are responsible for shipping out your order to your customer and the shipping company charged you for that.

 

Effectively all you are doing is taking the money that you earned from the customer by charging them shipping and then paying your shipper to ship the order out for you.

 

If there is anything else I can help you with, please let me know.

Dirk | Social Care @ Shopify 
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