Easy & Accurate UK Shopify Shipping: Master Postcode Rates & Avoid Problems

Is Your Shopify Store Bleeding Money on UK Shipping Rates?

Are you losing money on UK Shopify shipping because you've been unable to correctly set up your delivery zones? You're not alone! As of March 2025, the Shopify platform still has not addressed one of the most glaring holes in its UK set-up—delivery to non-Mainland UK addresses.

Many Shopify store owners unknowingly eat into their profits using inaccurate, flat-rate shipping, especially to non-mainland UK destinations. Most ignore the problem because it seems too complicated to fix.

But what if I told you there was a solution that could unlock accurate pricing, protect your bottom line, and keep your customers happy?

Introducing 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 set up postcode-based rates to ensure 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 fails to account for the significant cost differences in shipping to various regions.

Specifically, the Scottish Highlands, Islands, and Northern Ireland often incur significantly higher shipping costs due to their remote locations and the surcharges imposed by carriers.

Let's give you an example: you're selling a handcrafted item for £50, and you offer a flat-rate shipping fee of £5 across the UK.

A customer in mainland England pays £55 in total. Great! But when a customer in the Scottish Highlands orders the same item, and the carrier charges you £15 for delivery, you've just lost £10 on that sale! These costs add up quickly, and if you ship many products to these regions, you'll lose money on every sale!

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.

Take Aberdeen postcodes (AB), for example. Some AB postcodes are considered mainland UK, while others fall within the Scottish Highlands, incurring higher delivery charges. Shopify's native settings can't differentiate between these, lumping them all together.

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

Incorrectly setting up your shipping rates can lead to either overcharging customers (bad for customer relations) or losing money (bad for you!).

Why Carrier-Calculated Shipping Isn't Always the Answer (Especially on Basic Plans)

You might be thinking, "Why not just use carrier-calculated shipping?" 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.

But even with higher-tier plans, CCS may not fully solve the postcode issue.

Carrier-calculated rates are often based on weight and dimensions, not specific postcode zones within the UK, which means you may still have inaccurate pricing for the Highlands, Islands, and Northern Ireland.

Therefore, postcode-based shipping is often necessary, even if you have carrier-calculated rates!

The other drawback of carrier-calculated rates is that you need to weigh and size each product, which can be problematic if you have hundreds or more products.

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

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

Choosing the Right App: UK users should choose Parcelify because of its range of configuration options and ease of use.
Install the App: Install the app from the Shopify App Store.
Import Your Postcode Data: Contact your delivery company for an up-to-date spreadsheet of their shipping zones.
Configure Your Rules: Set up rules to define which postcodes belong to which shipping zones and assign appropriate rates.
Test, Test, Test!: Thoroughly test your shipping rates with various postcodes to ensure accuracy.

Setting Up UK Shipping Zones

Most people struggle with this, so I'll show you how to set up your shipping zones for maximum flexibility.

To make it simple, I've provided a Google sheet to work from: https://docs.google.com/spreadsheets/d/19et7sN4x6v5is_Ye8k_Ulidmwd2PaBMBrnVrnnakgWo/edit?usp=sharing.

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, you can use the start 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 & 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 4 Scottish Mainland

So that we don't overcharge those people living on the Scottish Mainland, here is an extra zone to cover them:

Best Practices (and Common Pitfalls)

To maximise the effectiveness of postcode-based shipping, keep these best practices in mind:

Organise Your Postcodes: Structure your postcode zones logically (e.g., by region, carrier cost) to avoid overlapping zones and conflicts.
Set Accurate Rates: Research carrier costs for different postcodes, accounting for packaging materials and handling fees.
Deal with Exceptions: Handle very remote areas or oversized items that require special shipping with custom rules.
The Importance of Testing: Thoroughly test shipping rates with various postcodes to ensure accuracy.
Or Let an Expert Handle It! Setting up postcode shipping can be time-consuming and complex.

Troubleshooting (and When to Call for Help)

Even with the best setup, you may encounter issues. Here are some common problems:

Incorrect postcode entry by customers.
Unexpected shipping costs at checkout.
App conflicts or errors.

While you can often troubleshoot these issues yourself, there comes a time when seeking expert assistance is the best option. If you're feeling overwhelmed or spending hours fixing problems, call for help.

Mastering postcode-based shipping can seem daunting, but the rewards are worth the effort. By setting it up correctly, you'll protect your profits and provide a better experience for your customers.

Contact Me if you need help setting up postcode shipping.

Resources

Shopify Apps & 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