Shipping products costs money – decide how you want to split these costs with your customers and suppliers.

As a Storefront, you must come to an agreement about how you want to handle shipping for your Supplier’s products. Canal allows you to customize your shipping agreement depending on what you want to charge your customer and what you want to pay your Supplier. Once you propose these terms, the Supplier will decide whether to accept the proposal with these shipping terms or suggest alternate terms.

Canal tip: Remember that Shopify shipping profiles combine! If products from different shipping profiles are added to a cart, the shipping costs are added together at checkout.

Read on for examples on each of these shipping terms you can propose.

  1. Supplier’s Dynamic Rate

  2. Flat Rate

  3. Flat + Dynamic Rate

  4. Free Shipping

Supplier’s Dynamic Rate

The Supplier’s dynamic rate option allows you to charge your customer the exact same shipping that the Supplier (in this case, “Claire’s Coffee”) offers on their site. You then pay the Supplier that same amount, passing the money you collected from your customers through to the Supplier to cover their shipping charges.

Canal tip: Canal recommends using this option because it is economical for both you and the Supplier.

For example, let’s say a Supplier has a shipping policy of $5 for orders below $50, and free shipping for orders above $50. You are selling two of the Supplier’s products – a $10 product and a $60 product.

  • If your customer checks out with just the $10 product, they will be charged $5 for shipping, which will be added to their cart shipping total.

  • If your customer checks out with the $10 and $60 product, they will be charged $0 for shipping, because the $70 total is over the Supplier’s $50 free shipping threshold.

Note: Supplier’s dynamic rate is available for customers using Shopify Plus or higher. If you are using Shopify Basic, you’ll need to upgrade your account to include carrier shipping or switch to Shopify Yearly Billing to gain access. Once you upgrade or switch, please contact us to get access.

Flat Rate

You can also set flat rates for what you want to charge your customer and pay your supplier.

If you want your customer to pay shipping costs that are then passed on to the Supplier, you should select the same amount on both sides.

Canal tip: This is also economical for both you and the supplier!

You’ll also want to use Custom Flat Rate for both options if you agree to a certain shipping contribution with the supplier.

For example, you may want to offer free shipping to your customers, but have agreed to contribute $2 per order toward the Supplier’s shipping costs. To do so, you’d select the following.

Flat + Dynamic Rate

If you want to charge your customer a custom flat rate (for example, $5.99 per order) and pay the Supplier the dynamic rate they offer on their site, you would select custom flat rate for the customer in the left column and the Supplier’s dynamic rate for the Supplier in the right column.

You may want to use this option to maintain a certain customer experience on your site, but you still agree to pay the Supplier based on the rates they maintain on their site.

Canal tip: Keep in mind that this type of agreement may affect your profit margin.

Note: The inverse of this (Dynamic + Flat rate) is not possible. You cannot select charging the customer the Supplier’s dynamic rate and paying the Supplier a custom flat rate. To charge customers a dynamic rate you must also pay suppliers the dynamic rate.

Free Shipping

If you want to offer free shipping to your customer and not pay the Supplier for shipping, you would select custom flat rate on both sides and enter $0 as the amount.

Up next:

What are Canal’s shipping options?

How do proposals work for Storefronts?

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