There are 3 ways Shopify calculates the shipping rate during checkout. You can manually enter rates based on price and weight, or have your shipping carrier calculate it dynamically for you.
To set up shipping rates, go to the PREFERENCES tab > Shipping.
There are a few different shipping rate strategies you can use. Click here to find out which one will works best for your store.
1. Price based rates
For price based, Shopify calculates the total cost of the order and based that amount, it applies a shipping rate according to rules you have set.
For example you can set that any order from $50 to $99 should be charged $18 for shipping.

Price based rates is the quickest to setup as you don't need to enter the weight of each item. However, it can be the less accurate method so be careful when you set your rules.
2. Weight based rates
Weight based rates work the same way as price-based rates except it's calculated base on the total weight of the order.
For example, any order that weighs between 2.0lbs and 3.0lbs should be charged an additional $10 for shipping.

For the weight based rates, you will need to make sure that every product has a weight associated to it.
To do this, edit each Product Variant on your product page (at the bottom under "Inventory").

3. Carrier calculated shipping rates
Let UPS, USPS and FedEx calculate the exact shipping costs in real time for you and your customers. It's the most accurate method and will allow you to minimize your shipping charges without affecting your margins.
Now when customers go to the checkout your carrier will calculate instantly the shipping costs.

Carrier Shipping is available for those on a Business plan and up. If you need to upgrade your account, click here to find how.

The setup steps for each carrier varies from one to another. Look at the specific instructions for your preferred carrier: UPS, USPS and FedEx.
Offering Ground, Priority, Over-night shipping
You can offer multiple shipping options to your customers; for example, ground, priority, over-night.
Create the same shipping rates and clearly title each shipping rate.

At checkout, Shopify will present all valid shipping options available to that customer and allow him to pick . The default option will be the most inexpensive one.

Related Article: Can I prevent or edit shipping to certain provinces or states?
Related Article: Can I add a shipping calculator before customers check out?
