Shipping costs

Payments + Shipping & Fulfilment

Topic summary

Issue: A Canadian merchant reports U.S. customers are charged about $7 USD (~$10 CAD) for shipping at checkout, but the lowest label the merchant can buy costs $22 CAD.

Likely causes:

  • Currency display mismatch between customer-facing USD and admin-side CAD.
  • Shopify Shipping may show discounted rates to customers versus what the merchant pays elsewhere.
  • Service-level mismatch (customer selects a slower/less trackable option while the merchant buys a faster/pricier label).

Suggested actions:

  • Verify currency settings for both storefront and admin.
  • Review Shopify Shipping options/rates and align service levels with what is purchased.
  • Get quotes directly from Canada Post/UPS/DHL, or use the Multi-Carrier Shipping Label app to display the merchant’s own carrier-account rates at checkout.

Status: No confirmed resolution; next step is for the merchant to validate settings and adjust shipping services/rates accordingly.

Summarized with AI on December 24. AI used: gpt-5.
2

hi @fourseasons_1 There are a couple of reasons why you might be seeing this discrepancy. It can be due to:

  • Display Currency: Shopify and some shipping apps (if you are using any) might be displaying the American customer’s shipping cost in USD while your shipping label purchases are reflected in CAD. Double-check the currency settings for both the customer’s view and your store admin.

  • Discounted Rates through Shopify Shipping: If you are using Shopify Shipping, the shipping rates are often negotiated discounted rates with carriers. The $7 USD your customer sees might be a discounted rate offered by Shopify that you wouldn’t get if you purchased the label directly from the carrier.

  • Shipping Service Discrepancy: The $7 USD shipping option your customer sees might be a slower or less trackable service compared to the one you typically purchase for $22 CAD.

I would recommend you:

  • Verify that the customer’s shipping cost and your label purchase cost are shown in the correct currencies.
  • Check the shipping options and rates offered by Shopify Shipping for your products and destinations. You might find a service that balances affordability for the customer and cost-effectiveness for you.
  • If Shopify Shipping rates aren’t ideal, consider getting quotes directly from carriers like Canada Post, UPS, or DHL to see if they offer better pricing for your typical shipping needs. You can also make use of the Multi-Carrier Shipping Label app to display your carrier account rates from Canada Post, UPS, DHL, FedEx, etc. directly on the checkout page.