Popular ways to charge shipping



As previous mentioned, shipping costs are an important factor in any consumer’s purchase decision making process. Therefore, you should think carefully about how, and how much, to charge for shipping. Here a few things to consider when setting up your Shipping Matrix:

  • Free Shipping
  • Free over "X" Amount
  • Cubic/Weight Based
  • Flat Rate Shipping
  • Per Item Shipping

Free Shipping

Add the cost of shipping into your selling price - this is becoming a popular option, embraced by some of Australia’s largest online retailers. Consumers love free shipping.

Free Over "X" Amount

Charge a flat rate or tiered price for shipping up to a certain order value after which shipping is free. This method can increase average order value and drive up sales.

Cubic/Weight Based

Shipping costs are calculated on the cubic or weight of the order and the destination post code. The larger the order, the more expensive the shipping will be using this method.

This is typically how freight carriers charge for shipping and is therefore the most accurate way for you to charge for shipping. There is less risk involved in this method.

Flat Rate Shipping

Charge a flat rate based on the order value.

Per Item Shipping

Charge a different flat rate per product. This allows you to set different rates for different items.


  • Last Modified: 18/11/2016