Anyone can set up an eCommerce store with Shopify since it was made to be simple to do so. Its popularity as the most used eCommerce platform, with more than 800,000 shops and counting, may be due to this. Although Shopify Shipping makes selling simple, this is simply one aspect of online shopping.
A crucial aspect of your business is the fulfilment of online orders. No matter how big or small your Shopify business is, here are three ways to make shipping easier. There are three choices for shipping and order fulfilment on Shopify Shipping.
Order fulfilment choices are many for every eCommerce business. For Shopify, there are three main shipping options: do it yourself, use the Shopify Fulfillment Network, or go with a fulfilment facility. You don’t have to handle everything on your own if you keep your order processing in-house; Shopify Shipping can help.
Here, you’ll find the information you need to weigh your options and choose the best shipping strategy for Shopify. Also keep in mind that as your business develops, what works for your Shopify store may change.
1. Shopify Shipping
Shopify Shipping is instantly accessible through your Shopify store. With assured eCommerce shipping prices at checkout, you may ship through DHL, USPS, or UPS inside the United States.
You can view all of your shipping details in your Shopify store dashboard thanks to Shopify Shipping. You can print shipping labels directly from the interface, and Shopify also lets you monitor your goods.
Shopify Shipping’s benefits and drawbacks
When thinking about your shipping options, it might help to make a list of pros and cons. Here are a few things to think about while using Shopify Shipping.
- Ecommerce shipping is made simple by Shopify Shipping.
- You get access to shipping discounts that you wouldn’t otherwise have.
- Shopify charges you only one monthly fee that includes everything, even shipping.
- Setting your shipping costs at checkout is simple.
- Set a free shipping minimum order quantity using Shopify Shipping.
- FedEx is not a shipping service offered by Shopify.
- It’s far too simple to include a component of human error.
- For instance, while printing the order label, you might select the incorrect package type.
- Alternately, a shipping label with the erroneous shipping service level might be printed.
- Only businesses with internal fulfilment are eligible to use Shopify Shipping.
If you hire someone else to handle order fulfillment, you’ll need to find other ways to save money on shipping.
Rates for Shopify shipping
Shopify Shipping is compatible with Shopify Basic, Shopify, and Shopify Advanced. You receive cheap shipping at all tiers, but the amount you save on shipping may vary depending on the kind of Shopify site you have. Shopify claims to save up to 88 percent off retail shipping costs. To determine your charges, use the Shopify shipping calculator.
Who ought to make use of Shopify Shipping?
Small online retailers should consider Shopify Shipping. Shopify Shipping can assist you in competing on shipping costs, whether you are opening your first store or doing online retail as a side business. But Shopify suggests that you upgrade to the Shopify Fulfillment Network if you ship more than five items every day.
2. Shopify Fulfillment Network
A third-party fulfilment option for Shopify retailers is the Shopify Fulfillment Network. Shopify receives your items for storage, pick-and-pack assistance, and shipping. You will pay fulfilment and warehousing expenses just as with other 3PLs.
Your fulfilment services are connected with your Shopify store, unlike other 3PLs. The Shopify Fulfillment Network currently only ships orders to addresses in the United States. This fulfilment service is available to Shopify businesses that ship between three and 200 orders per day and have fewer than 200 SKUs.
The fulfilment of perishable goods or controlled commodities cannot be handled by Shopify’s warehouses.
Amazon FBA vs. Shopify Fulfillment Network
The Shopify Fulfillment Network offers advantages and disadvantages when compared to Amazon FBA. The good news for Amazon is that it has far broader fulfilment operations and has warehouses all around the United States. Amazon runs its own facilities, while Shopify works with other logistics companies to do its fulfillment.
Additionally, Amazon has years of fulfilment experience perfecting its fulfilment processes, whereas Shopify is a relative newcomer. Orders placed on your Shopify store can be sent through FBA, but Shopify does not support multi-channel fulfilment. When it comes to branding, Shopify has the advantage.
Shopify will send orders in your packaging and even add package inserts for you, but all Fulfillment by Amazon products are sent in boxes with the Amazon logo. Shopify, unlike Amazon, doesn’t have its own product line, won’t copy your goods, and won’t sell your information to unaffiliated third parties.
Even though Shopify doesn’t have Amazon’s warehouse infrastructure yet, it does own 6 River Systems, which makes some of the most advanced robotics and artificial intelligence (AI) for warehouse operations.
The Shopify Fulfillment Network’s benefits and drawbacks
Along with the comparisons to Amazon, here are some more things to think about when choosing the Shopify Fulfillment Network.
- Integration with your Shopify stores is simple.
- The extras that are included in your orders are under your discretion, right down to fulfilment (a big difference from FBA).
- The shipping notice emails are sent from your business when Shopify Fulfillment sends out an order on your behalf.
- Shopify has carefully chosen its fulfilment partners and will keep an eye on how they work to save you time.
- The ideal warehousing sites for your items are suggested to you.
- You may only use Shopify’s fulfilment services to send orders that were placed in your Shopify store.
- Only American and Canadian businesses are permitted to use the Shopify Fulfillment Network.
- Shopify will keep your items in warehouses managed by various third-party logistics partners, so your fulfilment may vary.
- Shopify is in charge of your fulfilment processes, not you.
The Costs of Shopify’s Fulfillment Network
Although the Shopify Fulfillment Network is not the most affordable fulfilment option, the convenience may outweigh the cost. A pick-and-pack fee is added to the cost of storage for each purchase. Additionally, specific project fees will be charged to you for services like receiving goods, kitting, and returns. Penalties that Shopify charges for things like delivering inbound inventory erroneously are also included in the special project costs.
For whom is the Shopify Fulfillment Network appropriate?
The Shopify Fulfillment Network might be an excellent option if you are a committed Shopify merchant and don’t want the headache of handling your own fulfilment or locating and maintaining a 3PL yourself. But if you’re an omnichannel retailer or think you might outgrow Shopify in the future, it might be better to connect with a third-party logistics provider.
3. Third-party Shopify shipping
Managing Shopify shipping from third parties is simple. The Shopify dashboard has 3PL fulfilment management tools. Additionally, as Shopify is the most widely used eCommerce platform, practically any third-party logistics provider will have a ready-made Shopify interface.
When you work with a fulfilment provider, you are in charge of every part of your online store. You choose the best product fulfilment business for your needs and work with that company for a long time. As your business grows and changes, you can choose to keep working with the same logistics provider.
It is expensive to move fulfilment warehouses. You are responsible for the cost of shipping your goods to the new warehouse until the new warehouse completes your onboarding procedure. Making the proper 3PL selection now is an excellent investment in the future of your eCommerce business. Advantages and disadvantages of Shopify’s third-party shipping Not every Shopify seller should choose to work with a 3PL. Some of the things to include in your pro and con columns are listed below.
- Your fulfilment operations are entirely in your hands.
- No order minimums or maximums are required by a 3PL.
- You can have as many SKUs as you want in the warehouse of your choice, or there may be more limits.
- A wide variety of goods, including perishable or restricted goods, can be shipped.
- When shipping your purchases, Shopify will make use of your custom-branded packaging and inserts.
- Many 3PLs give their customers shipping discounts.
- There will be more shipping options available to you, including FedEx.
- Instead of keeping separate stock for your Shopify site, your 3PL can fulfil all of your orders from every sales channel with a single set of inventory.
- You are responsible for managing your fulfilment (with help from your 3PL).
- You have to search for the ideal 3PL provider for your business.
- You cannot run all of your Shopify activities from within Shopify, thus you must integrate a third-party dashboard (however, there are apps to help you do this).
- Shopify shipping fees are 3PL.
The price of Shopify shipping may vary depending on the fulfilment location you choose. You may anticipate paying for storage and pick-and-pack services, as well as extra for specialised services like kitting. Consider the overall fulfilment value when calculating the cost of logistics rather than just the bottom line. Consider the savings you’ll get by using expert fulfilment services.
For whom should Shopify employ third-party shipping?
Any Shopify vendor that intends to grow should think about third-party fulfilment. The best fulfilment warehouse for omnichannel e-commerce enterprises is one that can handle orders from several platforms. Work with a 3PL if you’re prepared for professional fulfilment. Regardless of the size of your business, you may locate a fulfilment centre that works well for you.