International5 min readSeptember 1, 2025

How to Price International Shipping for Your Online Store

International shipping pricing affects conversion and margin. Here is how to get it right.

Three international shipping pricing models are common: free shipping (built into product price), flat rate by region, and real-time carrier rates. Each has different impacts on conversion and margin.

Free international shipping increases conversion but requires building shipping cost into product pricing. This works well for high-margin products but destroys economics on low-margin items where shipping is a significant percentage of product cost.

Flat rate by region is predictable for customers and manageable for sellers. Set the flat rate slightly above your average actual shipping cost so high-volume or distant shipments do not consistently run at a loss.

Real-time carrier rates show the customer exactly what shipping costs and collect it precisely. This is the most accurate model but has the lowest conversion of the three — shipping cost shock at checkout is a major cart abandonment trigger.

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