Managing shipping expenses is a crucial part of running a successful e-commerce business. From carrier rates to hidden surcharges, understanding how much Shippo costs and what the platform’s fees entail can help you make smarter shipping decisions. This guide breaks down Shippo pricing, including plans, additional fees, and tips to optimize your Shippo shipping costs—empowering you to ship smarter and save more.
Table of Contents
- Introduction: Navigating Your E-commerce Shipping Expenses
- Why Is Shippo So Affordable? Understanding Its Competitive Rates
- Shippo Subscription Plans: Which One Fits Your Business?
- Additional Costs & Fees to Consider
- Billing & Refunds: How Shippo Handles Payments
- Tips to Reduce Your Shipping Costs with Shippo
- Final Thoughts: Making Shipping Cost-Effective for Your Business
- FAQs About Shippo Costs
Introduction: Navigating Your E-commerce Shipping Expenses
Running an online store means constantly balancing customer satisfaction with shipping costs. With numerous carriers, rates, and fees, it’s easy to feel overwhelmed. Knowing how much Shippo costs and understanding its fee structure lets you control your expenses, whether you’re just starting out or scaling up. This guide provides clarity on Shippo pricing, including plans, surcharges, and strategies to keep your Shippo shipping costs manageable.
Why Is Shippo So Affordable? Understanding Its Competitive Rates
Shippo’s mission is to democratize shipping by giving small and medium-sized businesses access to rates usually reserved for large retailers. The platform acts as a shipping API, connecting users to over 40 carriers worldwide and negotiating Shippo discounts on their behalf.
This collective shipping power allows Shippo to offer some of the lowest shipping rates in the industry. For example, many users report savings of up to 90% compared to retail carrier prices. How is this possible? By consolidating the shipping volume of hundreds of thousands of merchants, Shippo secures favorable Shippo rates—and passes those savings directly to its users. That’s why Shippo is so cheap compared to other shipping solutions.
Shippo Subscription Plans: Which One Fits Your Business?
Shippo offers flexible plans designed to accommodate all business sizes, from startups to high-volume enterprises. Here’s a breakdown of what you can expect:
Is Shippo Free? The Starter Plan Explained
Many ask, “Does Shippo cost money?” The answer is: not necessarily, especially with the Starter Plan. This plan is free to get started and is perfect for small businesses or those with limited shipping volumes—up to 30 labels per month.
Key features include:
- No monthly fee
- Unlimited e-commerce integrations
- Import orders via CSV
- Create return labels
- Shipment tracking
- Address validation (U.S. addresses free, international addresses at $0.09 each)
- Access to Shippo discounted rates with USPS, UPS, FedEx, DHL, and others
- No per-label creation fee when using Shippo’s carrier accounts
This plan is an excellent way to explore how much Shippo costs at a basic level without committing financially.
Scaling Up: The Pro Plan and Monthly Costs
As your business grows, the “how much does Shippo cost” question becomes more relevant. The Pro Plan introduces a monthly subscription fee, which varies based on your estimated shipping volume:
- For 31-200 labels/month: around $19/month
- For 201-500 labels/month: approximately $29/month
- Higher tiers are available for larger volumes
What’s included?
- Connect all your carrier accounts for direct rate comparison
- Custom branding on tracking pages and emails
- Phone and priority email support from shipping experts
- Up to 10,000 labels/month
- Priority support
- Lower address validation fees ($0.08 per international address)
The Pro Plan is suitable for growing businesses that need more advanced features and better Shippo rates through direct carrier integrations.
Enterprise Needs: The Premier Plan
For large-scale operations, the Premier Plan offers enterprise-grade solutions. Pricing is customized through direct contact with Shippo’s sales team, but it includes:
- Unlimited labels
- Support for 15+ users
- Advanced analytics and reporting
- Dedicated account management
- Lower international address validation fees ($0.06 per address)
- Guaranteed 99.9% uptime
This plan is designed for high-volume shippers who require robust support and customization.
Additional Costs & Fees to Consider
While subscription plans cover many features, other Shippo costs can impact your overall shipping budget.
Shipping Label Postage and Rate Options
The core expense is the postage for each label. Rates vary depending on:
- Carrier (USPS, UPS, FedEx, DHL)
- Service level (economy, express, international)
- Package weight and dimensions
Special pricing options, like Shippo cubic pricing, can help optimize costs for small, heavy packages. Connecting your own carrier accounts allows you to compare your negotiated rates with Shippo rates to find the best deal.
Carrier Surcharges and Hidden Fees
Carriers often add surcharges, which include:
- Fuel surcharges: fluctuate based on fuel prices
- Residential delivery fees: waived if using Shippo’s UPS/FedEx accounts
- Peak season surcharges: during busy shipping periods
- Dimensional weight adjustments: if package size exceeds standard limits
To avoid unexpected charges, meticulously measure your packages and understand carrier-specific surcharges.
Optional Services: Insurance & Signature Confirmations
Adding optional services can increase Shippo costs, but they offer vital protection:
- Shipping insurance: through XCover, typically 1.25-1.50% of the insured value
- Signature confirmation: $3.50–$9.65 depending on service level, providing proof of delivery
Evaluate whether these extras are necessary based on your shipment value and risk profile.
Billing & Refunds: How Shippo Handles Payments
How much does Shippo cost per month? It depends on your plan and shipping volume. For newer accounts (post-November 2022), charges are billed immediately after label purchase. For older accounts, billing occurs weekly once you exceed $100 or after seven days.
Payment methods: Credit/debit cards and ACH transfers (U.S. only). Pre-paid or gift cards are not accepted.
Refunds: You can request refunds within 90 days of purchase for unused labels. Refunds are credited to your account and typically appear within 14 business days.
Tips to Reduce Your Shipping Costs with Shippo
- Compare rates: Always review Shippo rates versus your negotiated carrier rates.
- Accurate measurements: Measure packages carefully; rounding up slightly prevents costly adjustments.
- Leverage cubic pricing: For small, dense packages, this can lead to significant savings.
- Use automation: Automate label creation, rate selection, and rules to avoid manual errors.
- Monitor surcharges: Be aware of surcharges and choose carriers or services with fewer fees.
-
Use Promo Codes: Shippo’s platform includes a field in the billing section to enter promotional codes. It’s a good practice to check for available discounts that could apply to your account.
Final Thoughts: Making Shipping Cost-Effective for Your Business
Understanding Shippo pricing helps turn shipping from a cost center into a strategic advantage. Whether you’re on the free Starter Plan or a custom Enterprise package, leveraging Shippo discounts and optimizing shipping costs through accurate data and automation can lead to substantial savings. With its competitive Shippo rates and flexible plans, the platform is well-suited to support your business’s growth while keeping costs transparent and manageable.
FAQs About Shippo Costs
Is there a free way to use Shippo?
Yes. The Starter Plan is free and allows shipping up to 30 labels per month with no monthly fee. Additional charges may apply if you connect your own carrier accounts.
How does Shippo keep its rates so low?
By aggregating shipping volume from hundreds of thousands of merchants, Shippo negotiates Shippo discounts with carriers, enabling it to pass savings onto users.
What are the main costs beyond the subscription?
Postage costs vary based on carrier and service. Optional services like insurance and signature confirmation add to Shippo fees but provide valuable protection. Surcharges like fuel and residential delivery fees may also increase costs.
Does Shippo have a monthly fee?
It depends. The Pro plan charges a monthly subscription, but the Starter plan does not. Enterprise plans are customized.
Can I get discounts or promo codes?
Shippo’s billing settings include a field where you can enter promotional codes for potential discounts on subscriptions or labels. This feature allows you to apply any available codes directly to your account.
How are refunds handled?
Refunds for unused labels can be requested within 90 days. Once approved, credits appear within 14 business days.
