Master UK Shopify Shipping with Postcode-Based Rates

Is Your Shopify Store Bleeding Money on UK Shipping?

Shopify store owners lose money on UK shipping because they can’t correctly set up their delivery zones. You’re not alone. As of March 2025, the Shopify platform still hasn’t addressed one of the most glaring holes in its UK setup: delivery to non-mainland UK addresses.

I’ve watched many Shopify store owners unknowingly eat into their profits using inaccurate, flat-rate shipping, especially to non-mainland UK destinations. Most of them ignore the problem because it seems too complicated to fix. This is one of many issues I cover in my comprehensive guide to pay monthly websites.

There is a solution. Postcode-based shipping rates unlock accurate pricing, protect your bottom line, and keep your customers happy.

I’m talking about postcode-based shipping rates: the key to mastering UK Shopify deliveries.

In this post, I’ll show you how to navigate the complexities of UK shipping and I’ll walk you through setting up postcode-based rates so you’re charging the right amount every time.

The Hidden Costs of Ignoring Postcode Shipping

Using the flat-rate or standard UK shipping models is a hidden trap for some Shopify stores. While it seems simple on the surface, it completely fails to account for the significant cost differences in shipping to various regions.

The Postcode Puzzle: Why It’s More Complicated Than You Think

Postcode-based shipping rates allow you to exert granular control over your pricing, charging different rates based on specific UK postcodes or postcode areas. But here’s where it gets tricky, and I mean genuinely tricky.

Take Aberdeen postcodes (AB), for example. Some AB postcodes are considered mainland UK, while others fall within the Scottish Highlands and incur higher delivery charges. Shopify’s native settings can’t differentiate between these - it lumps them all together. I’ve seen this catch out even experienced store owners.

To make matters worse, different carriers use different rules. Parcelforce charges a minimum of £7.75 for delivery to the AB31 postcode and DPD charges £15.65. Other factors, such as remote islands, oversized items, and carrier-specific surcharges, further complicate the picture.

I’ve seen incorrectly set up shipping rates lead to either overcharging customers (which damages trust) or losing money (which damages you).

Why Carrier-Calculated Shipping Isn’t Always the Answer

You might be thinking, “Why not just use carrier-calculated shipping?” I hear this a lot. Carrier-calculated shipping (CCS) can provide more accurate rates based on weight, dimensions, and destination. However, third-party CCS isn’t available on the Basic Shopify or Shopify Starter plans.

Why not?

Because Shopify incurs additional costs to integrate and maintain connections with third-party carriers. These features are reserved for higher-tier plans. If you’re comparing platforms, my pay monthly website guide covers platform alternatives in detail.

This means you may still have inaccurate pricing for the Highlands, Islands, and Northern Ireland. I tell my clients that postcode-based shipping is often necessary even if they have carrier-calculated rates.

The other drawback I see with carrier-calculated rates is that you need to weigh and size each product, which can be genuinely problematic if you have hundreds of products or more. My project management guide shows how I systematically handle large product catalogues.

Setting Up Postcode-Based Shipping: My Step-by-Step Guide

Ready to take the plunge? Here’s my simplified overview of how I set up postcode-based shipping using a Shopify app:

Choosing the Right App

I recommend UK users choose Parcelify because of its range of configuration options and ease of use. I’ve tried several alternatives and I keep coming back to this one.

Install the App

I install the app from the Shopify App Store. This part is straightforward.

Import Your Postcode Data

I contact the delivery company for an up-to-date spreadsheet of their shipping zones. This is a step that a lot of people skip, and I find it makes all the difference.

Configure Your Rules

I set up rules to define which postcodes belong to which shipping zones and I assign appropriate rates to each one.

Test, Test, Test

I thoroughly test the shipping rates with various postcodes to ensure accuracy. I test mainland, I test Highlands, I test Northern Ireland. I don’t go live until I’m confident every zone is right.

Setting Up UK Shipping Zones

Most people struggle with this part, so I’ll show you exactly how I set up shipping zones for maximum flexibility.

To make it simple, I’ve provided a Google sheet to work from: UK Shipping Zones Template.

You can make a copy and save it to your Google Drive to edit.

Zone One: England and Wales

This zone has all the mainland UK postcodes, excluding the Scottish Mainland. In Parcelify, I use the “starts with” area postcode to define the UK mainland. Here is the comma-separated list:

AL, B, BA, BB, BD, BH, BL, BN, BR, BS, CA, CB, CF, CH, CM, CO, CR, CT, CV, CW, DA, DD, DE, DG, DH, DL, DN, DT, DY, E, EH, EN, EX, FY, G, GL, GU, HA, HD, HG, HP, HR, HU, HX, IG, IP, KT, KY, L, LA, LD, LE, LL, LN, LS, LU, M, ME, MK, ML, N, NE, NG, NN, NP, NR, NW, OL, OX, PE, PL, PO, PR, RG, RH, RM, S, SA, SE, SG, SK, SL, SM, SN, SO, SP, SR, SS, ST, SW, SY, TA, TD, TF, TN, TQ, TR, TS, TW, UB, W, WA, WC, WD, WF, WN, WR, WS, WV, YO

Zone Two: Scottish Highlands and Islands

AB31, AB33, AB34, AB35, AB36, AB37, AB38, AB45, AB52, AB53, AB54, AB55, AB56, FK17, FK18, FK19, FK20, FK21, HS1, HS2, HS3, HS4, HS5, HS6, HS7, HS8, HS9, IV1, IV2, IV3, IV10, IV11, IV12, IV13, IV14, IV15, IV16, IV17, IV18, IV19, IV20, IV21, IV22, IV23, IV24, IV25, IV26, IV27, IV28, IV30, IV31, IV32, IV36, IV40, IV41, IV42, IV43, IV44, IV45, IV46, IV47, IV48, IV49, IV51, IV52, IV53, IV54, IV55, IV56, IV99, KA27, KA28, KW1, KW2, KW3, KW5, KW6, KW7, KW8, KW9, KW10, KW11, KW12, KW13, KW14, KW15, KW16, KW17, PA20, PA21, PA22, PA23, PA24, PA25, PA26, PA27, PA28, PA29, PA30, PA31, PA32, PA33, PA34, PA35, PA36, PA37, PA38, PA41, PA42, PA43, PA44, PA45, PA46, PA47, PA48, PA49, PA60, PA61, PA62, PA63, PA64, PA65, PA66, PA67, PA68, PA69, PA70, PA71, PA72, PA73, PA74, PA75, PA76, PA77, PA78, PA80, PH17, PH18, PH19, PH20, PH21, PH22, PH23, PH24, PH25, PH26, PH30, PH31, PH32, PH33, PH34, PH35, PH36, PH37, PH38, PH39, PH40, PH41, PH42, PH43, PH44, PH49, PH50, ZE1, ZE2, ZE3

Zone Three: Northern Ireland, Isle of Man, Scilly Isles

BT1, BT2, BT3, BT4, BT5, BT6, BT7, BT8, BT9, BT10, BT11, BT12, BT13, BT14, BT15, BT16, BT17, BT18, BT19, BT20, BT21, BT22, BT23, BT24, BT25, BT26, BT27, BT28, BT29, BT30, BT31, BT32, BT33, BT34, BT35, BT36, BT37, BT38, BT39, BT40, BT41, BT42, BT43, BT44, BT45, BT46, BT47, BT48, BT49, BT51, BT52, BT53, BT54, BT55, BT56, BT57, BT58, BT60, BT61, BT62, BT63, BT64, BT65, BT66, BT67, BT68, BT69, BT70, BT71, BT74, BT75, BT76, BT77, BT78, BT79, BT80, BT81, BT82, BT92, BT93, BT94, IM1, IM2, IM3, IM4, IM5, IM6, IM7, IM8, IM9, IM99, TR21, TR22, TR23, TR24, TR25

Zone Four: Scottish Mainland

So that I don’t overcharge people living on the Scottish Mainland, I add an extra zone to cover them:

AB31, AB33, AB34, AB35, AB36, AB37, AB38, AB45, AB52, AB53, AB54, AB55, AB56, FK17, FK18, FK19, FK20, FK21, HS1, HS2, HS3, HS4, HS5, HS6, HS7, HS8, HS9, IV1, IV2, IV3, IV10, IV11, IV12, IV13, IV14, IV15, IV16, IV17, IV18, IV19, IV20, IV21, IV22, IV23, IV24, IV25, IV26, IV27, IV28, IV30, IV31, IV32, IV36, IV40, IV41, IV42, IV43, IV44, IV45, IV46, IV47, IV48, IV49, IV51, IV52, IV53, IV54, IV55, IV56, IV99, KA27, KA28, KW1, KW2, KW3, KW5, KW6, KW7, KW8, KW9, KW10, KW11, KW12, KW13, KW14, KW15, KW16, KW17, PA20, PA21, PA22, PA23, PA24, PA25, PA26, PA27, PA28, PA29, PA30, PA31, PA32, PA33, PA34, PA35, PA36, PA37, PA38, PA41, PA42, PA43, PA44, PA45, PA46, PA47, PA48, PA49, PA60, PA61, PA62, PA63, PA64, PA65, PA66, PA67, PA68, PA69, PA70, PA71, PA72, PA73, PA74, PA75, PA76, PA77, PA78, PA80, PH17, PH18, PH19, PH20, PH21, PH22, PH23, PH24, PH25, PH26, PH30, PH31, PH32, PH33, PH34, PH35, PH36, PH37, PH38, PH39, PH40, PH41, PH42, PH43, PH44, PH49, PH50, ZE1, ZE2, ZE3

Best Practices (and Common Pitfalls)

To get the most out of postcode-based shipping, I keep these best practices in mind:

I organise my postcodes logically: I structure postcode zones by region and carrier cost to avoid overlapping zones and conflicts. Getting this right at the start saves me hours of debugging later.

I set accurate rates: I research carrier costs for different postcodes, and I account for packaging materials and handling fees. I don’t guess - I get the actual numbers from the carriers.

I deal with exceptions head-on: I handle very remote areas or oversized items that require special shipping with custom rules. Every edge case I don’t handle is a potential loss.

Or Let Me Handle It

Setting up postcode shipping can be time-consuming and complex. I’ve done it enough times now that I can get it right first time, and I can save you the headaches of figuring it out yourself.

Troubleshooting (and When to Call for Help)

Even with the best setup, I sometimes encounter issues. Here are the common problems I see:

• Incorrect postcode entry by customers
• Unexpected shipping costs appearing at checkout
• App conflicts or errors that aren’t immediately obvious

I can often troubleshoot these issues myself, but there comes a time when seeking expert help is the best option. If you’re spending hours fixing problems instead of running your business, that’s the time to call. This is especially important if you’re migrating from EKM to Shopify and you need to get shipping right from day one.

Mastering postcode-based shipping can seem daunting, but I promise the rewards are worth the effort. By setting it up correctly, you’ll protect your profits and you’ll provide a better experience for your customers. My multi-channel selling guide shows how accurate shipping enables expansion to new sales channels.

Get professional Shopify shipping setup assistance if you need help setting up postcode shipping. I also cover this as part of my Shopify website design service.

Resources

Shopify Apps and Tools

Parcelify (Shopify App): Parcelify

Advanced Shipping Rules: Advanced Shipping Rules - A good alternative if Parcelify doesn’t fit all needs.

Shopify’s Shipping Zones Documentation: Shopify Shipping Zone Documentation

Shopify App Store - Shipping Category: Shopify Orders and Delivery Apps

UK Shipping and Postcode Information

Royal Mail’s Website: Royal Mail

Parcelforce Website: Parcelforce

DPD Website: DPD

UK Postcode Finder: Postcode Finder

Guides and Articles

Shopify’s UK Shipping Guide: Everything you need to know about UK Shopify shipping