Why are my Shopify shipping charges not matching up?

[Lespa]

I moved my website to Shopify almost a year ago after over 20 years on other platforms. I use Shopify Shipping and only have Canada Post as an option. I have it set up to add $1.50 to every shipment to cover packaging costs. In the past (on other platforms) I have always made money on the shipping by doing this, and it has paid for my packaging. However, Shopify charges me more each week than I collect...so, I'm not only not making the packaging cost, I'm loosing money. It took me a few months to realize this, but finally I started creating my own spread sheets each week when I got the Shopify bill. Has anyone else found this problem? As a one person business I can't afford to loose money and spending the time each week to create the spread sheet could be better spent if Shopify would create this report themselves. One that clearly indicated the exchange rate difference between what is stated at the time of the order and what is on my weekly bill.

[PluginHive]

Hi,

Just to simplify the concept, shipping rates are calculated based on a variety of factors and not just the weight. The following factors are responsible for calculation of shipping rates at checkout : 
Shipper address, Destination address, Weight of shipment, Dimensions of the shipment, etc.

May I know what products you sell? Does it vary so much in dimensions? Using the weight and dimensions, a carrier calculates the volumetric weight and then calculates the rates for it. So, in order for a solution to correctly calculate the volumetric weight, it should accept dimensions. 

[Lespa]

Hi HariKrishna
I’ve been shipping from a website for over 20 years, so I do understand how the shipping calculations work. I’ve only been on the Shopify platform since last June – prior to that I never had an issue.
The problem is that I am charged more by Shopify than I collect from the Customer – which should not be possible. I have it set up so that an extra $1.50 is added to every orders shipping fee, so that my packaging costs are covered…but I don’t get that $1.50/pkg. I pay Shopify more than I collect – if I ship 200 pkgs in a month I should be getting 200x1.5 =$300 more than what I owe Shopify – but Shopify takes the whole amount and more (due to the exchange rate issue).
I want to know why I don’t get that $1.50/pkg The packaging costs have been coming out of my profits instead of being covered by the surcharge added to the shipping…which is going to Shopify. Perhaps you can look to see if I have set something up incorrectly.

[Lespa]

I understand all of that. I've had an on-line business for over 20 years. I've only ever had this issue on the Shopify platform. I have always made money on shipping and with Shopify I loose money with almost every shipment...some I make as much at 80cents.

When I go to print the shipping label - Shopify states what the value of the label is in Canadian $'s and it usually matches the amount the Customer has paid less the $1.50 (or sometimes less even more than that if I use a smaller box). So, that is good. It also usually states the amount I will be charged in US$. If I calculate the exchange rate used at this time - it's usually about 1.26. 

When I get my Bill for Shipping I create a spread sheet starting with downloading the shipping bill into excel. This gives me the Order numbers and Shipping in US $. I then use the PayPal notice and have to calculate the exchange rate (easy enough - but odd since the PayPal Invoice started out in Canadian and gets converted to US - why not leave it in Canadian...yes, I know, Shopify deals only in US $). PayPal uses a very different exchange rate - about 1.3 real world exchange rates don't fluctuate this dramatically in just a few days - but they do from institution to institution. Which could be the problem.

Bottom line - if I charge my customers $1.50 on every sale -why do I not get that $1.50 when it appears that I will at the moment I purchase the label. There is a problem with how this is managed on Shopify, since I have never had this issue in 20 years prior to using Shopify. AND - in the back end of Shopify where I added the $1.50 it should say "You may not get this money - don't count on it." The wording currently indicates that the amount I enter is for packaging and handling.

[PluginHive]

Hi @Lespa,

Thanks for clarifying the scenario. I think it will be better to contact Shopify support via chat to get an accurate solution for this issue. I'm not fully sure why there is such an issue when, ideally there should not be a problem.  

[Lespa]

I have tried contacting them. I was told I was not the only one who had brought this to their attention, but they could not advise me.