# Choose a shipping strategy that fits your business

Your shipping strategy plays a key role in conversion, average order value, and profit margins. Below are the two main shipping approaches on Palmstreet, how they work, and when each makes sense for your business.

## Flat Rate Shipping

Flat rate shipping charges a fixed fee at checkout—typically a base fee for the first item plus an add-on fee for additional items (e.g., $10 + $2).

#### Why use flat rate shipping

* Shows clear, predictable costs before checkout
* Reduces checkout friction and abandoned carts
* Simple to set up and manage
* Works well when your items have similar weights and sizes

#### Things to keep in mind

* Shipping costs can change and may require periodic updates
* You're responsible for estimating costs accurately
* Incorrect estimates can impact margins or lead to overcharging
* Buyers in distant states pay the same as buyers nearby

#### When to choose flat rate

Best for sellers who:

* Ship items with predictable weights and sizes
* Want simplicity over precision
* Serve buyers across many states without extreme distance variation

<div><figure><img src="/files/GAlpzr4mvfM0xWKEjzbI" alt=""><figcaption></figcaption></figure> <figure><img src="/files/0GIYCzrMSnqWNDSgLVs3" alt=""><figcaption></figcaption></figure></div>

<figure><img src="/files/77LJBrBQEQsljU7x9Gdd" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/XvN6S5ESdRAbVYXFeQjD" alt=""><figcaption></figcaption></figure>

## Calculated by Buyer's Location

This method sets shipping fees based on the buyer's state or region. You define zones (e.g., your state, West Coast, Midwest, East Coast) and assign different rates to each.

#### Why use calculated shipping

* Closer buyers pay less, which can improve local conversion
* More accurately reflects actual shipping costs by distance
* Helps avoid overcharging nearby customers

#### Things to keep in mind

* More complex to set up and explain to buyers
* Requires you to research and set zone-specific rates
* Buyers won't see final shipping cost until they enter their address
* Most sellers still choose flat rate for simplicity

#### When to choose calculated shipping

Best for sellers who:

* Ship heavy or bulky items where distance significantly affects cost
* Have a strong local or regional buyer base
* Want to offer competitive rates to nearby customers

<figure><img src="/files/VVaEWTmw8aMqGyrNPv5s" alt=""><figcaption></figcaption></figure>

## Key Recommendations

#### Enable combined shipping

Buyers pay the base shipping fee once per group of unshipped orders, plus only the add-on fee for additional items. This reduces buyer costs and refund requests.

**Strongly recommended to keep enabled.**

<figure><img src="/files/aB0b7LGmnAfcbaow9HPJ" alt="" width="375"><figcaption></figcaption></figure>

#### Follow category benchmarks

The table below shows average shipping fees charged by sellers in each category on Palmstreet (based on Q4 2025 data). These benchmarks reflect what top-performing sellers charge and are intentionally buyer-friendly to improve conversion.

| Category           | Avg Base Fee | Avg Add-On Fee |
| ------------------ | ------------ | -------------- |
| COIN               | $5           | $1             |
| SPORTS MEMORABILIA | $5           | $1             |
| TRADING CARD       | $5           | $1             |
| JEWELRY            | $6           | $1             |
| COSPLAYER          | $7           | $2             |
| BEAUTY             | $7           | $1             |
| COLLECTIBLE TOY    | $7           | $2             |
| ACCESSORIES        | $7           | $2             |
| FASHION            | $8           | $1             |
| DISNEY LOUNGEFLY   | $8           | $2             |
| CRYSTALS           | $8           | $1             |
| CLOTHES            | $8           | $1             |
| BAG                | $8           | $2             |
| ANIME              | $10          | $2             |
| POTTERY            | $10          | $2             |
| VINTAGE DECOR      | $10          | $2             |
| RARE PLANTS        | $12          | $2             |
| INVERTEBRATE       | $30          | $1             |
| AQUATIC            | $35          | $2             |
| REPTILE            | $45          | $2             |
| SNAKE              | $50          | $2             |

#### Use custom shipping for special items

Set custom rates per listing for heavy, fragile, or oversized items to better cover actual shipping costs.

<figure><img src="/files/45Crb7npbrtIfGfc0uk2" alt="" width="375"><figcaption></figcaption></figure>

## Next Steps

**Choose your approach:**

* Most sellers (80%+) use **flat rate** for simplicity
* Use **calculated by location** if distance-based pricing matters to your business model

**Set up your policy:**

1. Go to Seller Hub → Settings → Shipping
2. Enable Combined Shipping
3. Set your base fee and add-on fee based on category benchmarks above
4. Test with a few orders and adjust if needed

**Learn more:**

[How to set up dynamic shipping fee](/seller/palmstreet-shipping-guide/getting-ready-to-ship/how-to-set-up-dynamic-shipping-fee.md)\
[How to enable combined shipping fees](/seller/palmstreet-shipping-guide/getting-ready-to-ship/how-to-enable-combined-shipping-fees.md)


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