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. More information can be found here.
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.