Squarespace Ecommerce: Shipping, Taxes & Inventory

Learning Objectives

• Set up and manage different shipping methods on Squarespace
• Configure tax rules for various regions and product types
• Manage inventory effectively and maintain accurate stock levels
• Understand the key settings that keep your store running smoothly

Introduction

Running an ecommerce store means getting three things right: shipping, taxes, and inventory. Get these wrong and you'll have frustrated customers, compliance issues, and stock problems that can sink your business.

This chapter walks you through setting up each component properly on Squarespace. We'll focus on practical steps that work for beginners, starting with the basics and building up to more advanced configurations.

Lessons

Setting Up Shipping Methods

Your shipping setup determines how much customers pay and how quickly they get their orders. Start simple and add complexity as you grow.

Step 1: Access your shipping settings

• Log into your Squarespace account
• Go to Commerce > Shipping
• You'll see options for different shipping methods

Step 2: Choose your shipping method

• Flat rate: Same price for all orders (easiest to start with)
• Weight-based: Price varies by total weight
• Carrier-calculated: Real-time rates from shipping companies

Step 3: Set up shipping zones

• Create zones for different regions (UK, Europe, Rest of World)
• Set different rates for each zone
• Consider offering free shipping above a certain order value

Step 4: Test your settings

• Place a test order to see how shipping appears at checkout
• Check that rates display correctly for different destinations

This is the bit most people miss: always test your shipping setup before going live. What looks right in the admin panel might confuse customers at checkout.

Configuring Tax Settings

Tax compliance isn't optional. Set this up correctly from the start to avoid problems later.

Step 1: Navigate to tax settings

• Go to Commerce > Taxes
• You'll see options for different regions and tax types

Step 2: Set up your tax regions

• Add the countries or states where you need to collect tax
• Enter the correct tax rates for each region
• For UK businesses, this includes VAT at 20% for most products

Step 3: Configure product-specific taxes

• Some products have different tax rates (books, children's clothing)
• Set up tax categories if you sell products with varying rates
• Digital products may have different rules than physical goods

Step 4: Enable automatic tax calculation

• Turn on location-based tax calculation
• This applies the correct rate based on customer address
• Always double-check the rates match current regulations

Here's the quick version: if you're unsure about tax rates, consult an accountant. Getting this wrong can be expensive.

Managing Inventory Effectively

Good inventory management prevents overselling and keeps customers happy. It also helps you plan purchases and cash flow.

Step 1: Set up inventory tracking

• Go to Commerce > Inventory
• Enable inventory tracking for products you want to monitor
• Enter current stock levels for each product

Step 2: Configure low stock alerts

• Set minimum stock levels that trigger alerts
• Choose how you want to receive notifications (email works well)
• Set different thresholds for different products

Step 3: Use bulk editing tools

• Update multiple products at once using CSV uploads
• This saves time when you receive new stock
• Keep a backup of your inventory data

Step 4: Set up inventory policies

• Decide what happens when items go out of stock
• Hide products, show "out of stock", or allow backorders
• Consider how long restocking typically takes

Roll your sleeves up and check your inventory weekly. Monthly reviews work for slow-moving products, but popular items need more attention.

Practice

Set up a test product in your store and configure all three elements:

1. Create a simple product with basic details
2. Set up flat rate shipping for your main markets
3. Configure tax settings for your location
4. Add inventory tracking with a low stock alert
5. Place a test order to see how everything works together

This exercise helps you understand how customers experience your store and spot any issues before they become problems.

FAQs

Can I offer free shipping on orders over a certain amount?
Yes, set up a shipping rule that applies free shipping when the order total exceeds your threshold. Many stores use £50 or £100 as their free shipping minimum.

How do I handle returns and exchanges for inventory?
When processing returns, manually update inventory levels to reflect returned items. Squarespace doesn't automatically adjust inventory for returns.

What happens if I oversell a product?
You'll need to contact affected customers and either refund them or offer a delivery date for when stock arrives. Prevention is better than cure here.

Can I set different tax rates for different product categories?
Yes, create tax categories in your settings and assign products to the appropriate category. This is useful for businesses selling both standard and reduced-rate items.

How do I handle shipping to multiple addresses in one order?
Squarespace treats each shipping address as a separate order. Customers need to place separate orders for different delivery addresses.

Jargon Buster

Flat rate shipping: Fixed shipping cost regardless of order size or weight

Tax exempt: Customers or transactions not subject to tax due to specific exemptions

Inventory alerts: Notifications sent when product stock reaches a predetermined low level

Shipping zones: Geographic areas with specific shipping rates and delivery options

Backorders: Orders for products currently out of stock but expected to arrive soon

SKU: Stock Keeping Unit – unique identifier for each product variant

Wrap-up

You now have the foundation for managing shipping, taxes, and inventory on Squarespace. These aren't set-and-forget systems – they need regular attention as your business grows.

Start with simple setups and add complexity gradually. Monitor your settings regularly and adjust them based on customer feedback and business needs. Most importantly, test everything before customers see it.

Next, you'll learn about payment processing and checkout optimisation to complete your ecommerce setup.

Join Pixelhaze Academy for more detailed tutorials and ongoing support as you build your Squarespace store.