> ## Documentation Index
> Fetch the complete documentation index at: https://support.smartshipping.app/llms.txt
> Use this file to discover all available pages before exploring further.

# Luxury Percentage-Based Shipping

> Percentage-based rates for high-value luxury items

# Luxury Percentage-Based Shipping

## 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.

## Smart Shipping Solution

### 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)

### 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

### 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!