Shopify Shipping Zones Explained: How to Set Up Rates That Work

Understanding Shipping Zones

Shipping zones in Shopify determine who pays what for shipping. Get them right, and you'll maximize conversions while protecting margins.

How Shopify Shipping Zones Work

A shipping zone is a group of countries/regions that share the same shipping rates.

Example Zone Structure:

Zone 1: Domestic (United States)
Free shipping over $50
$5.99 flat rate under $50

Zone 2: North America (Canada, Mexico)
$14.99 flat rate
Free shipping over $100

Zone 3: International
Calculated rates (real-time carrier quotes)

Setting Up Zones in Shopify

#### Step 1: Access Shipping Settings Settings → Shipping and delivery → General shipping rates

#### Step 2: Create Your First Zone

Click "Create shipping zone"

Name it (e.g., "Continental US")

Select countries/regions

Add rates

#### Step 3: Add Rates to Zone

Rate Types:

Recommended Zone Setup for US Stores

Zone 1: Continental United States (48 states)

Rate 1: Orders $0-49.99 → $5.99 flat rate
Rate 2: Orders $50+ → FREE shipping
Optional: Express shipping → Calculated (carrier rates)

Zone 2: Alaska & Hawaii

Rate 1: Standard → $12.99 flat rate
Rate 2: Orders $100+ → FREE shipping
Note: Higher costs justify higher threshold

Zone 3: Canada

Rate 1: Standard (7-14 days) → $12.99
Rate 2: Express (3-7 days) → $24.99
Rate 3: Orders $150+ → FREE standard

Zone 4: International

Rate 1: Calculated rates (show real carrier costs)
OR
Rate 1: Flat rate → $29.99 standard
Rate 2: Flat rate → $49.99 express

Carrier Zone vs Shopify Zone

Important distinction:

Carrier Zones (USPS, UPS, FedEx):

• Based on distance from origin
• Zone 1-8 within US
• Affects your actual shipping cost

Shopify Zones:

• Groups of countries you define
• Determines what customers pay
• Your pricing strategy

Strategy: Group carrier zones into Shopify zones:

Weight-Based Shipping Setup

For stores with varied product weights:

Example Weight-Based Rates:

0-8 oz: $4.99
8 oz - 1 lb: $6.99
1-2 lb: $8.99
2-5 lb: $12.99
5-10 lb: $18.99
10+ lb: Calculated

Shopify Setup:

Create zone

Add rate → Weight-based rate

Set weight ranges and prices

Ensure product weights are accurate in Shopify

Price-Based Shipping (Free Shipping Thresholds)

The most conversion-friendly approach:

Setup:

Create zone

Add rate: Flat rate $6.99, applies to all orders

Add rate: Free shipping, minimum order $50

Advanced: Conditional Free Shipping

• $50+ → Free standard
• $75+ → Free expedited
• $100+ → Free priority

Calculated (Real-Time) Rates

Let carriers calculate exact shipping at checkout.

Pros:

• Always accurate
• No risk of undercharging

Cons:

• Can cause cart abandonment (sticker shock)
• Requires accurate product weights/dimensions

When to Use:

• Heavy/large items
• High-value items
• B2B sales
• When margins are thin

Setup:

Create zone

Add rate → Use carrier or app to calculate rates

Select carriers (USPS, UPS, FedEx)

Enable services you want to offer

Handling Special Locations

#### PO Boxes USPS delivers, UPS/FedEx don't.

Solution:

• Use USPS for PO Box addresses
• Configure in your shipping app (Atoship auto-detects)

#### APO/FPO/DPO (Military) Ships via USPS at domestic rates.

Setup:

• Include in domestic zone
• Note: Only USPS options

#### US Territories Puerto Rico, Guam, USVI, etc.

Best Practice:

• Create separate zone "US Territories"
• Slightly higher rates (shipping costs more)
• Or include with Alaska/Hawaii zone

Common Zone Setup Mistakes

❌ One zone for everywhere Problem: You'll overpay or undercharge someone.

❌ Too many zones Problem: Complicated to manage, confusing for customers.

❌ Not testing checkout Problem: Errors only discovered by customers.

❌ Forgetting remote areas Problem: Orders to Alaska cost more than expected.

Testing Your Shipping Setup

Manual Testing:

Create test orders

Use addresses from each zone

Verify rates display correctly

Check calculated rates accuracy

Tools:

• Shopify's test checkout mode
• Ask friends in different states/countries

Integrating Atoship with Shopify Zones

Atoship enhances Shopify shipping:

Live Rate Shopping: Instead of flat rates, show customers the actual cheapest option:

• "USPS Ground Advantage - $5.82 - 3-5 days"
• "UPS Ground - $7.45 - 2-4 days"

Automatic Carrier Selection: When you fulfill, Atoship picks the cheapest carrier matching your zone's promised delivery time.

Setup:

Install Atoship app

Enable carrier calculated shipping

Select carriers to show at checkout

Set minimum delivery standards

Zone Optimization Tips

Tip 1: Use data to set thresholds

Average order value: $45
Free shipping threshold: $55-65 (20-40% higher)
Expected AOV increase: 15-20%

Tip 2: Seasonal zone adjustments

• Holiday season: Lower free shipping threshold
• Post-holiday: Standard rates
• Sales events: Special shipping offers

Tip 3: Zone-specific promotions

• "Free shipping to Canada this week!"
• Creates urgency for international customers

Your Zone Setup Checklist

☐ Map out your zones (domestic, nearby, international) ☐ Set rates for each zone ☐ Configure free shipping thresholds ☐ Test checkout from each zone ☐ Set up carrier integration (Atoship) ☐ Document your shipping policy ☐ Monitor and optimize quarterly

Next Steps

Proper shipping zones are the foundation of a profitable shipping strategy. Once configured:

Connect Atoship for discounted carrier rates

Enable rate shopping to always get the best price

Track shipping costs vs revenue by zone

Optimize based on data

Start with a free Atoship account to see how much you could save on every shipment.