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Shipping and Taxes in WooCommerce

Once your WooCommerce store is ready to take orders, you’ll need to decide how products reach your customers — and how taxes are calculated. Shipping and taxes might seem boring, but they’re essential for a smooth buying experience.

Carol Jabbour avatar
Written by Carol Jabbour
Updated over 2 weeks ago

1. Shipping Zones and Rates

WooCommerce gives you full control over where and how you ship your products.
Each shipping zone represents a geographic area (like a country, region, or city). Inside each zone, you can assign shipping methods and rates.

Example:

  • Zone 1: Egypt – Flat Rate 50 EGP

  • Zone 2: Europe – Flat Rate €20

  • Zone 3: Rest of World – Free Shipping over $100

How to set it up:

  1. Go to WooCommerce → Settings → Shipping → Shipping Zones

  2. Click Add shipping zone

  3. Add your Zone Name, select Regions, and then click Add shipping method

  4. Choose between Flat rate, Free shipping, or Local pickup

Tip: You can use plugins like Table Rate Shipping to set more complex conditions — for example, charging based on weight, product category, or order total.


2. Free Shipping vs Flat Rate

Choosing between these two options depends on your pricing strategy.

Free Shipping

Customers love it — and it often boosts conversion rates.
You can:

  • Offer it on all orders

  • Offer it for orders above a certain amount (e.g., “Free shipping on orders over $75”)

  • Restrict it to certain zones

Setup:
In WooCommerce → Settings → Shipping → Shipping Zones, add Free shipping and choose a requirement (like a coupon or minimum order amount).

Flat Rate Shipping

You define a fixed cost per order or per item — simple and predictable.
You can even use shortcodes inside the cost field for more flexibility:

  • 10 → charges $10 flat per order

  • [qty] * 5 → charges $5 per item in the cart

Strategy tip: Combine both! Offer flat rate for small orders and free shipping for larger ones.


3. Local Pickup

If you have a physical store or local customers, Local Pickup lets them collect their orders directly.

Setup steps:

  1. Add a Local Pickup method to your shipping zone.

  2. Optionally, add a small handling fee or mark it free.

  3. Customize your pickup instructions under WooCommerce → Settings → Shipping → Local Pickup (e.g., pickup hours, address).

This method is perfect for small local businesses or restaurants offering “click and collect.”


4. Taxes

We touched on tax basics in the first WooCommerce article, but now let’s configure them properly.

Enable Taxes

Go to WooCommerce → Settings → General, and make sure Enable taxes is checked.
Once active, a new Tax tab appears in your WooCommerce settings.

Tax Classes

WooCommerce supports multiple tax classes, like:

  • Standard Rate (default)

  • Reduced Rate

  • Zero Rate

You can even create custom ones (e.g., “Luxury Items”) and assign them to specific products.

Configuring Tax Rates

Under WooCommerce → Settings → Tax, click Standard rates to add new rows:

  • Country Code (e.g., US)

  • State Code

  • Rate % (e.g., 10)

  • Tax Name (e.g., Sales Tax)

  • Priority (if multiple rates apply)

You can upload large rate tables via CSV if you sell internationally.

Display Settings

WooCommerce lets you control how taxes appear:

  • Prices entered with or without tax

  • Displayed including or excluding tax on the shop and cart

  • Show line-item taxes or totals only

Pro Tip: If you’re in the EU, consider using a plugin like EU VAT Assistant for automated VAT calculations based on the customer’s location.


5. Practical Scenarios

  • Local business: Flat rate for your city, Local Pickup for nearby customers, and simple 14% VAT.

  • International store: Multiple zones (EU, US, Rest of World), free shipping above $100, and region-specific tax tables.


Conclusion

Shipping and taxes may not be the most exciting parts of running an online store, but they’re crucial for customer trust and legal compliance.
With WooCommerce’s flexible setup — plus the right combination of free shipping, flat rates, and clear tax rules — you’ll create a shopping experience that’s fair, fast, and frustration-free.

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