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E-commerce

Setting Up Shipping Rates That Don't Lose You Money

Published on Jan 07, 2026 Updated on Jul 31, 2026 2 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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