The banner says “Free shipping”. The courier invoice says ₹90. Both can be true. The customer may pay nothing for delivery while the shop pays the full bill. Trouble begins when the price of the product has no room for it.
To set ecommerce shipping costs, weigh and measure the packed parcel, check charges for the destinations you serve, and compare the cost with the money left on an order. Choose paid shipping, a flat rate or a free-shipping rule that you can explain clearly and afford to honour.
Price the parcel you send
Include the box, not just the product
A mug weighing 300 grams may travel in a much larger parcel once it is protected. Record packed weight and dimensions. Ask your courier how it calculates chargeable weight, what divisor it uses for parcel size, and when extra charges apply. Provider rules vary, so use the agreement attached to your account.
Check more than one destination
Get quotes for a nearby delivery, a major city and a farther destination you serve. Add any applicable collection fee, taxes and surcharges to the cost sheet. Keep a separate allowance for failed deliveries and returns based on your own records. A single attractive quote does not describe every order.
Shopify's shipping-strategy documentation explains the trade-offs between charging for shipping and absorbing it. The decision still depends on your products and delivery routes.
Compare the three offers a buyer can understand
| Offer | What the buyer sees | What the shop must check |
|---|---|---|
| Calculated delivery | A charge based on the order or address | Is the estimate available early enough? |
| Flat delivery fee | One stated charge within the covered area | Which orders cost more than the fee? |
| Free above a threshold | No delivery charge after a stated cart value | Does the actual basket leave enough margin? |
A threshold means the minimum order value that qualifies. State whether it is measured before or after discounts. Explain excluded destinations or bulky items beside the offer. Do not make the buyer discover the exception only after entering an address.
Work through one order before setting a threshold
Start with the money left before delivery
In this simplified example, a ₹600 order leaves ₹180 after product cost, packaging and payment fees. Tax is left out of the example; use consistent tax treatment in your own sheet. Delivery costs ₹90. Absorbing delivery leaves ₹90 before ads, returns and fixed bills.
Test the extra item as well
Suppose a buyer adds a ₹200 item that contributes ₹60 before delivery. If the parcel stays in the same shipping band, that extra ₹60 can help fund delivery. If the larger parcel costs another ₹80 to send, the added item actually leaves ₹20 less. A higher cart value is not automatically a better order.
That is why “set free shipping just above average order value” is only a starting idea. Try the real combinations people buy. Use the order-profit worksheet for the full calculation, and check the shipping strategy guide from Shopify for other models.
Tell the buyer both the cost and the timing
Separate packing time from travel time
An order may wait for dispatch before the courier starts moving it. Write both parts, with working days and cut-off times if relevant. Use an estimate you can support. A delivery date should not silently assume the product is already packed when it is still being made.
Keep the message consistent
Check the product page, cart, checkout and confirmation. They should agree on cost and timing. A helpful message template is: “Delivery to [pincode] is [charge]. We expect to dispatch by [date]. Estimated arrival: [range]. Contact [support route] if you need help.” Fill it from real order information.
Review the offer with actual invoices
For your next batch of orders, record the amount charged to the buyer and the final courier cost. Add a note for a weight dispute, failed attempt or remote-area charge. Compare the gap by product and destination, not only across the whole shop.
If one product repeatedly costs more to send, investigate its packaging or offer before changing every price. The COD returns guide covers parcels that come back without delivery. The cart audit helps you check whether buyers can understand the revised offer.
A conversation worth having
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