Small business

Choosing a shipping setup for a new online store

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Before negotiating rates, decide how you charge for shipping. That single decision drives carrier choice, packaging and margin.

New stores usually pick a carrier first and a shipping policy second. Reversing that order produces better economics, because the policy determines which carrier behaviour you actually need.

Pick a charging model first

  • Live rates at checkout: accurate, transparent, and it exposes surcharges to the customer at the worst moment.
  • Flat rate: simple and predictable, but you lose on distant zones and win on nearby ones — only viable if your parcels are consistent.
  • Free over a threshold: strong conversion tool, provided the threshold genuinely covers the average shipping cost.
  • Built into the price: clean, but uncompetitive on price comparison for local customers.

Then design around it

  1. Standardise on a few box sizes that match your real products, and check them against dimensional weight.
  2. Choose two carriers: one for small light parcels, one for heavy or bulky ones.
  3. Validate addresses at checkout to avoid correction fees.
  4. Write a returns policy that states who pays for the return leg before your first return happens.
  5. Track cost per shipment monthly and revisit the setup when the mix changes.

Do not promise delivery dates you cannot control. Promise dispatch times, which you can.

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