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Luxury Percentage-Based Shipping

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The Challenge

Meet Emma’s Luxury Jewelry Store - She sells high-end jewelry with orders ranging from $500 to $50,000:
  • Domestic (US): 2% of order value for insured shipping (minimum $15, maximum $200)
  • International: 4% of order value for insured shipping (minimum $50, maximum $500)
  • Local pickup: Free in NYC area
Emma needs shipping costs that scale with the value of expensive items while keeping reasonable limits.

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Smart Shipping Solution

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Step 1: Create Zones

Zone 1: New York Local
  • Country: United States
  • Create region: “NYC Area”
  • Postal codes: 100*, 101*, 102* (Manhattan area codes)
Zone 2: United States
  • Country: United States (excluding NYC region)
Zone 3: International
  • Type: “Rest of World” (all other countries)

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Step 2: Set Up Percentage-Based Rates

NYC Local (Free Pickup):
  1. Create Rate → “Local Pickup - NYC”
  2. Rate type: Flat Rate
  3. Price: $0.00
  4. Select region: “NYC Area”
United States Rates:
  1. Create Rate → “Domestic Insured Shipping”
  2. Rate type: Percentage of Order
  3. Percentage: 2%
  4. Minimum rate: $15.00
  5. Maximum rate: $200.00
International Rates:
  1. Create Rate → “International Insured Shipping”
  2. Rate type: Percentage of Order
  3. Percentage: 4%
  4. Minimum rate: $50.00
  5. Maximum rate: $500.00

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Real Examples

$800 Necklace Order:
  • NYC customer: $0 (free pickup)
  • US customer: $16 (2% of $800 = $16)
  • International: $32 (4% of $800 = $32)
$5,000 Ring Order:
  • NYC customer: $0 (free pickup)
  • US customer: $100 (2% of $5,000 = $100)
  • International: $200 (4% of $5,000 = $200)
$15,000 Luxury Set:
  • NYC customer: $0 (free pickup)
  • US customer: $200 (2% would be $300, but capped at max $200)
  • International: $500 (4% would be $600, but capped at max $500)
$200 Small Item:
  • NYC customer: $0 (free pickup)
  • US customer: $15 (2% would be $4, but minimum is $15)
  • International: $50 (4% would be $8, but minimum is $50)
Result: Emma’s shipping costs automatically scale with order value while maintaining reasonable minimums and maximums. High-value orders get proportional insurance costs, while small orders aren’t penalized with tiny shipping fees!