Setting Up International Shipping Rates That Make Sense

International shipping can be a real headache. Every week, I hear from merchants who are either losing international sales because their rates are too high or losing money because they set rates too low. Neither scenario is great. Let’s talk about how we can fix that.

Different Countries, Different Expectations

One thing I’ve learned? People in different parts of the world have totally different shipping expectations:

• U.S. shoppers want faster shipping (thanks, Amazon). They’ll often pay more for 2-3 day delivery if you can offer it.
• Canadian shoppers are okay with slightly longer delivery times, but they want clear tracking and transparency around customs fees.
• UK shoppers are used to free or low-cost shipping, so if you can’t offer free, at least show them exactly what they’ll pay.
• Australian shoppers really care about delivery speed and tracking. Providing multiple shipping speeds and realistic ETAs can help keep them happy.

Is International Shipping Right for You?

Before you jump in, check whether it makes sense to ship your products globally. If your margins are already tight, you might lose money on every international sale. On the other hand, if your products are lightweight or have high margins, you might have plenty of room to explore.

Tip: Look at your average order value and the shipping costs to each target region. If you’re bleeding profits with every international order, consider bundling items or adjusting your strategy so shipping costs don’t eat into your margins.

How Better Shipping Can Help

I built Better Shipping to handle these scenarios. You can create specific rates for different products, variants, and even postal codes. This means you can customize your international shipping rules down to specific locations or product groups.

Setting Up Product Groups

If you sell lightweight items (like t-shirts) and heavier items (like hoodies), you don’t want to lump them into one big, expensive rate. That scares off the t-shirt-only crowd. Instead, create separate international rates:

• T-Shirts: $12 for the first item, $4 for each extra.
• Hoodies: $20 for the first item, $8 for each extra.

This keeps the costs fair and helps avoid abandoned carts from folks who just wanted a single t-shirt.

Bundling Products

Another tactic I see a lot: create bundles designed specifically for international customers. For example, a “3-pack” of t-shirts that fits in one envelope. The per-item shipping cost drops, and your customers feel like they’re getting a better deal. Everyone wins.

Tailor Your Shipping by Region

If you notice a lot of orders from a specific area (say, major Canadian cities), offer a slightly cheaper rate just for those postal codes. For rural or remote locations, you can charge more to cover higher carrier fees. Better Shipping’s zip/postal code restrictions let you fine-tune this without forcing a one-size-fits-all approach.

Use Thresholds to Encourage Bigger Carts

Shipping thresholds can also be a game-changer. If you notice international customers tend to spend around $50 per order, you could offer a small shipping discount at $100 and maybe free shipping at $150 or $200. That nudge often motivates people to add one or two extra items so they qualify for cheaper (or free) shipping.

Packaging Tips: Big Savings, Fewer Surprises

Small tweaks in packaging can lead to big savings, especially with international carriers that use dimensional weight. If your package is large but lightweight, you might get charged more based on its volume. Do a quick audit of your box sizes and see if you can shave off an inch or two—that might drop you into a cheaper rate tier. Even swapping to padded envelopes for certain products can reduce costs and keep your margins healthy.

Potential Advanced Setup: Multiple Origins or Locations

If your store uses multiple origins (or multiple Shopify locations), you might see separate shipping rate requests for each location. That can lead to unexpected doubled rates at checkout. Better Shipping typically recommends using a single location setup for simplicity, but if you truly need a multi-location strategy, make sure to test thoroughly. You can reach out to our support or check our help docs for tips on advanced setups.

Quick "Pro Tips" Checklist

• Review margin vs. shipping: Make sure your profit margin isn’t wiped out by international shipping fees.
• Use shipping thresholds: Discount or free shipping at certain order values to encourage bigger carts.
• Optimize packaging: Cutting an inch off your box can sometimes drop you into a cheaper carrier tier.
• Clarify duties/taxes: Tell customers upfront about potential import fees or VAT to avoid unpleasant surprises.
• Test your setup: Place test orders with different combinations to catch hidden fees before your customers do.

Test Before Launching

It sounds obvious, but you’d be surprised how many times I’ve seen merchants overlook it. Put items in your cart—lots of combinations—and see how your shipping rates add up. Nothing stings more than finding out (too late) you’re losing money on shipping because your setup wasn’t dialed in.

Ready to Make It Happen?

If you’re looking to simplify your international shipping setup, try Better Shipping. You can start off in test mode so only you see the rates, and once everything looks good, roll it out to the public. If you run into questions, reach out here—we’ve helped hundreds of merchants get their global shipping on track.

More Resources

• How to Set Up Tiered Shipping
• Using Local Delivery to Beat Big Retailers
• How to Calculate Free Shipping Threshold

Remember, international shipping doesn’t have to drain your profits. With the right setup—and a little testing—you can make it a valuable part of your overall strategy.