Set up a Retail Delivery Fee for Colorado Customers on the Shop App
As of July 1, 2022, the state of Colorado is requiring a retail delivery fee on all deliveries by motor vehicle to a location in Colorado with at least one item subject to state sales or use tax.
To comply with this new regulation, you will need to have two different shipping providers: one shipping provider for all deliveries within Colorado, and another provider for the rest of the United States.
Below are the steps you will need to take:
- Navigate to the Shipping dashboard by selecting Shipping and Pickup on the left-hand sidebar of your Shop App.
- Determine which shipping provider will be used for all Colorado deliveries and set up. How to choose the right shipping provider.
- Add a handling fee to this shipping option and change the name to "Retail Delivery Fee".
- On the shipping carrier that you'd like to serve Colorado, click on Actions and select Edit from the dropdown menu.
- Customize the shipping options to target Colorado by setting up a custom shipping zone within the Shipping region settings.
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