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Setting Up Shipping Rates That Don't Lose You Money

Published on Jan 07, 2026 Updated on Sep 14, 2026 117 views

Shipping is one of the easiest places for an online store to quietly lose money if rates aren't set carefully.

Flat Rate vs Real-Time Carrier Rates

Flat rates are simple for customers but risk undercharging on heavy or distant orders; real-time carrier rates are more accurate but can feel unpredictable to shoppers at checkout.

Factor in Packaging, Not Just Postage

Box, padding, and handling time all cost money — a shipping price that only covers postage quietly loses margin on every order.

Consider Free Shipping Thresholds

Offering free shipping above a minimum order value often increases average order size enough to offset the shipping cost itself.

Further Reading


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