How to Set Up Magento Shipping Cost for Flat Rate, Table Rate, and More

Unexpected shipping charges are one of the reasons customers may abandon their carts. And if your Magento store doesn’t have clear shipping costs to display, it can confuse buyers. This is why it is important to have a clear shipping cost for your Magento store.

By default, there are four configurable Magento shipping cost methods you can set. The simplest option is a flat rate, and the most custom option is table rates.

In this article, we explain how to configure shipping costs and which option is best for your store’s needs. Let’s get started!

What Are Shipping Costs in Magento 2?

In Magento 2, shipping cost is the total fee your customer pays for delivering the order. It can be:

• A fixed amount (for example, $5 per order).
• A dynamic amount based on weight, destination, price, or quantity.
• A combination of the above, plus handling fees or discounts.

Magento 2 doesn’t ship orders natively. It provides rules, methods, and integrations to define how shipping prices are calculated. You can also present different methods (Flat Rate, Free Shipping, Table Rate, carriers, etc.). Lastly, you can control which methods appear to which customers and when.

What are the Default Shipping Methods in Magento?

Magento gives you a few built-in shipping methods that cover most common needs. The default methods are flexible enough to handle simple eCommerce shipping setups and can also be customized. We will explain each one in detail here.

Free Shipping

Free Shipping lets you offer zero-cost shipping under certain conditions. It is a go-to option if you want to attract more buyers and reduce cart abandonment.

In Magento, you can enable this and set conditions. You can present it only when an order reaches a certain threshold. It is a smart way to reward larger purchases without requiring additional tools. You will also find it easy to turn on and customize from your dashboard.

Common use cases:

• Free shipping above a minimum order value (e.g., orders over $100).
• Free shipping for specific countries or regions (e.g., across the USA).
• Free shipping during promotions or campaigns (e.g., Black Friday sales).

Free shipping helps increase average order value. You can, for example, set:

Free shipping for orders over $75 in the US.

While still charging shipping for lower order values or other countries.

Note: In Magento 2, Free Shipping is handled as a separate method with its own conditions, not just a coupon.

Flat Rate Shipping

Flat Rate Shipping charges the same base fee regardless of order value or destination. You choose to apply it per item. It is simple for both you and your customers.

Basically, you charge a fixed amount per order or item, regardless of size, weight, or any parameter. This is helpful when your shipping costs are consistent. It also makes checkout easy, which customers always appreciate.

You can configure it in two basic ways:

• Per Order: One fixed cost per order (e.g., $5 shipping for any order).
• Per Item: A fixed cost for each item (e.g., $2 per item, so 3 items = $6 shipping).

Flat Rate is best when:

• Your shipping cost averages out over time.
• You want a simple, transparent fee at checkout.
• You do not need complex destination or weight-based rules.

It is especially useful for small catalogs, standardized packaging, or when your carrier pricing is fixed.

Table Rate Shipping

Table Rate Shipping is a custom-built-in method in Magento 2. Instead of one fixed price, you define a table of rules based on:

• Destination (country, region/state, ZIP/postcode).
• Order weight.
• Order price and subtotal value.
• Number of items (quantity).
• Any other external parameter.

Magento then reads your CSV file and applies the rule to each order.

This is best for:

• Different shipping costs for different regions.
• Weight‑based or price‑based shipping.
• Minimum charges, maximum charges, and tiered pricing.

If you ship to multiple countries, have different carrier zones, or want advanced control, table rates are the default.

In-Store Delivery (Pickup)

In‑Store Delivery or the Pickup option is basically when customers place an online order and collect it from a physical location.

If you have a physical location, in-store pickup is a helpful option. Here, shipping costs are saved, and there is no accountability for delivery. You can even set which stores present a pickup option and when it is available.

Best for:

• You operate physical stores or warehouses.
• You want to offer Click & Collect or Store Pickup.
• You want to avoid shipping costs for local customers.

You can define multiple locations and show them as pickup options at checkout. For many businesses, this is the cheapest and fastest shipping method for local buyers.

So, Which Shipping Method Should You Use?

Free shipping works for promotions, flat rates keep it all simple, and table rates handle complex pricing. And if you sell locally, in-store pickup cuts costs.

If you want to select and set up the best shipping method for your Magento eCommerce store, consult with our Magento development company.

How to Enable Free Shipping in Magento?

If you want to increase your sales, free shipping works like magic. We have used it in our projects and saw order values jump by 30%. Here is a simple way to set it up in Magento. And it takes about 3 minutes to follow these steps.

Step 1: Log in to your Magento admin and go to Stores > Settings > Configuration.

Step 2: Click on Sales > Delivery Methods in the left sidebar.

Step 3: Expand the Free Shipping section.

Step 4: Set Enabled to Yes to activate the free shipping option.

Step 5: Enter the Title and Method Name. These will appear during checkout.

Step 6: Set the Minimum Order Amount to determine when free shipping applies.

Step 7: Choose whether to include Tax in that amount by setting this to Yes or No.

Step 8: Add a custom Displayed Error Message if free shipping is not available.

Step 9: Under Ship to Applicable Countries, select All Allowed or choose Specific Countries.

Step 10: Set Show Method if Not Applicable to Yes or No, based on your preference.

Step 11: Add a Sort Order number to control where this method appears during checkout.

Step 12: Click Save Config to apply your changes.

This is how simple it is. Free shipping is the easiest way to get customers to buy more. Just remember to check your profit margins first and your sales strategy.

How to Configure Magento Shipping Cost for Flat Rate Method?

Flat-rate shipping is best when you want simple, fixed shipping fees. No complicated calculations, just one direct shipping rate that customers can see. Here is how you can set it up in Magento.

Step 1: Log in to your Magento admin panel.

Step 2: Go to Stores > Settings > Configuration.

Step 3: In the left menu, click on Sales > Delivery Methods.

Step 4: Find the Flat Rate section and expand it.

Step 5: Set Enabled to Yes to turn on flat rate shipping.

Step 6: Enter a Title, which shoppers will see at checkout (e.g., Standard Shipping).

Step 7: Fill in the Method Name, which appears next to the rate (e.g., Shipping Fee or Flat Rate).

Step 8: Choose the type of flat rate:

• Per Order (one price for the full cart).
• Per Item (price multiplied by quantity).

Step 9: Set the shipping price you want to charge.

Step 10: Decide how you want to calculate handling fees. Choose Fixed or Percent.

Step 11: Enter the actual Handling Fee value based on your choice above.

Step 12: Choose whether to apply the method to All Allowed Countries or just Specific Countries.

Step 13: Set the Sort Order (optional), then click Save Config.

Flat rate shipping keeps pricing simple for you and your customers. Test it with a dummy order to make sure it works before going live. If you need greater customization with Magento shipping costs, use table rates. We will see how to configure that in the next section.

How to Set Up Table Rate Shipping Cost in Magento?

Table rate shipping is a smart option when you need custom shipping costs. Here is how to set it up properly.

Step 1: Log in to your Magento admin and go to Stores > Settings > Configuration.

Step 2: Click Sales > Delivery Methods from the left-hand menu.

Step 3: Expand the Table Rates section and set Enabled to Yes.

Step 4: Enter a Title for your shipping method (e.g., Courier Fees).

Step 5: Add a Method Name that will appear next to the shipping cost in the cart.

Step 6: Choose a Condition for shipping rate calculation:

• Weight vs. Destination
• Price vs. Destination
• Number of Items vs. Destination

Step 7: Set Include Virtual Products in Price Calculation to Yes (recommended).

Step 8: Choose how to calculate the handling fee. Either as a fixed amount or a percent.

Step 9: Enter the Handling Fee value depending on your choice above.

Step 10: If needed, write a custom error message or leave the default.

Step 11: Under Ship to Applicable Countries, select either All Allowed or Specific Countries.

Step 12: Set Show Method if Not Applicable to No to hide it when it doesn’t apply.

Step 13: Set the Sort Order to control its position during checkout, then click Save Config.

Step 14: Now, switch the Store View to a specific website and click Export CSV to download a sample file.

Step 15: Edit the CSV file using Excel or Google Sheets, set your custom rates, and then re-upload it under the Table Rates section using the Choose File button. Click Save Config again.

Table rates take a bit more setup than flat shipping, but they are worth it.

You will charge fair rates that actually cover your costs. After setting up, test with different addresses and order values to guarantee it works correctly.

Steps to Set Up In-Store Delivery in Magento

In-store delivery (or pickup) is a handy option if you have physical stores where customers can collect their orders. Magento makes it simple to enable this feature, but you will need a pickup location first. Here is how I set it up in my Magento store.

Step 1: Log in to your Magento admin panel.

Step 2: Navigate to Stores > Settings > Configuration.

Step 3: Go to Sales > Delivery Methods in the sidebar menu.

Step 4: Expand the In-Store Delivery section.

Step 5: Set Enabled to Yes to activate in-store pickup.

Step 6: Enter a Method Name that will appear in the shopping cart (e.g., Store Pickup).

Step 7: Fill in the Title that customers will see at checkout.

Step 8: Set the Price for pickup service, or leave it at 0.00 if it is free.

Step 9: Enter the Search Radius in kilometers. This controls how far Magento searches for pickup locations.

Step 10: Add a custom Displayed Error Message or keep the default.

Step 11: Click Save Config to finish.

With that, you have the setup for in-store delivery in Magento. It is a great way to offer convenience and cut delivery costs for your customers. Just make sure your pickup points are configured, and you are ready to go!

And if you want more ways to ensure the best convenience and cost efficiency for your customers, hire Magento developers with us.

How to Configure Shipping Carriers in Magento 2?

In addition to built‑in methods, Magento 2 can integrate directly with major carriers.

Commonly used carriers:

DHL Shipping Carrier

DHL is popular for international shipping. With DHL integration, Magento can:

• Calculate live shipping rates using the DHL APIs.
• Offer different DHL services (Express, Economy, etc.).
• Generate labels and tracking numbers (depending on integration/module).

Use DHL when:

• You ship globally.
• You need reliable international delivery with tracking.
• You want real‑time carrier pricing instead of fixed rules.

UPS Shipping Carrier

UPS is widely used in North America and beyond. UPS integration can:

• Provide real‑time UPS shipping rates at checkout.
• Support multiple UPS services (Ground, 2nd Day Air, Next Day, etc.).
• Give tracking and label support via API.

Good fit if:

• You rely on UPS as your primary carrier.
• You want rates that exactly match your UPS contract or public rates.

USPS Shipping Carrier

USPS is suitable for lightweight domestic shipments within the US. USPS integration lets Magento:

• Get real‑time USPS rates for services like First‑Class, Priority Mail, etc.
• Show multiple USPS options at checkout (customer chooses).

Best for:

• US‑based merchants.
• Smaller, lighter parcels where USPS is less costly.

FedEx Shipping Carrier

FedEx is a strong option for both domestic and international shipments. FedEx integration usually supports:

• Live rate calculation.
• Multiple FedEx services (Ground, Express, International Priority, etc.).
• Labels and tracking.

FedEx is suitable when:

• Speed and reliability are key.
• You need a strong international shipping partner.

In many cases, merchants combine carrier rates with real‑time pricing and table rates, or use a flat rate for promotions or simplified shipping.

Common Magento 2 Shipping Cost Issues & Troubleshooting

When setting up Magento shipping costs, many store owners run into the same problems:

1. Wrong or missing product weights: Carrier and table‑rate calculations rely on accurate weights; zero or unrealistic numbers break cost accuracy.
2. Overusing a single method: Relying only on a flat rate, even when your catalog is very diverse, can undercharge or overcharge many orders.
3. No separate logic for international orders: Using domestic rules for international shipping often leads to losses or uncompetitive pricing.
4. Cluttered checkout with too many options: Ten different methods confuse customers. Keep a small, clear set of options.
5. Ignoring handling fees: Not accounting for packing, insurance, or extra carrier charges reduces your margins.
6. Forgetting to test in Sandbox mode: Especially with carriers, going live without testing leads to customer issues and inaccurate shipping rates.

Avoiding these mistakes will make your setup more stable and profitable.

Ending Notes on The Magento Shipping Cost Analysis

Managing shipping rates is simple when you know your options. Once you understand how to set up shipping costs for each method, you can match it with your business and customer needs.

• Use Flat Rate if: You want to keep it simple by applying the same fee to every order.
• Use Table Rate if: You need custom pricing based on destination, weight, or order value.
• Use In-Store Delivery if: You have physical locations and want to offer local pickup as a convenient option.

Choose what fits best, test your setup, and you will be able to offer a transparent checkout experience every time. If you want help to set up your Magento eStore the right way, connect with us today!

Let’s Summarize

Managing shipping rates is simple when you know your options. Once you understand how to set up shipping costs for each method, you can match it with your business and customer needs.

• Use Flat Rate if: You want to keep it simple by keeping the same fee for every order.
• Use Table Rate if: You need flexible pricing based on destination, weight, or order value.
• Use In-Store Delivery if: You have physical locations and want to offer local pickup as a convenient option.

Choose what fits best, test your setup, and you’ll be able to offer a transparent checkout experience every time. If you want help to set up your Magento eStore the right way, connect with us today!

FAQs on Magento Shipping Cost