Shopify Offset App Review: Automate Carbon Neutral Shipping

Sustainability is becoming a primary concern for e-commerce consumers. Today, I am reviewing an app called Offset, built directly by Shopify. This tool allows store owners to neutralize their shipping carbon footprint automatically.

I have been using this app for about a year on my live store. In this review, I will cover the features, costs, backend interface, and implementation suggestions to help you decide if this is the right move for your brand.

Features and Costs

Essentially, the Offset app calculates the estimated CO2 emissions for every order your store ships. It does this by analyzing two main data points:

1. The weight of the order.
2. The distance the order travels.

Based on these factors, the app applies a formula to determine the emissions and calculates a cost to offset them. This amount is automatically deducted from your Shopify payout monthly (or per your billing cycle).

The Cost Breakdown

The pricing for this service is extremely reasonable:

• Rate: Approximately $5.40 per metric ton of estimated CO2 emissions.
• Per Order Estimate: Shopify estimates the cost ranges from $0.0075 to $0.15 per order.

To give you a real-world example, I run a coffee company where the average order weighs between 3 and 5 pounds. My average cost to offset shipping is only about half a cent ($0.005) per order. While this will vary if you are shipping heavy items like pianos or weights, for most standard e-commerce goods, the cost is negligible.

The Business Case for Sustainability

Why should you absorb this cost? According to Shopify’s Future of Commerce Trend Report (2022), focusing on sustainability is no longer just a moral choice—it is a business strategy.

• 44% of global customers choose to buy from brands with a clear commitment to sustainability.
• 23% of Shopify brands are currently taking steps to offset emissions.

Depending on your customer base, implementing a sustainability initiative like this can be a significant competitive advantage and a way to build brand loyalty.

Exploring the Backend Dashboard

Once installed, the Offset dashboard provides a clear overview of your environmental impact. It tracks orders similar to my live store (3–5 lbs shipments) and visualizes the data effectively.

Key Metrics Provided:

• Total Emissions Offset: The aggregate weight of CO2 neutralized.
• Average Cost Per Order: Helps you track profitability impact.
• Distance Traveled: Total mileage of your shipments.

Important Note on Shop Pay

A distinct advantage of the Shopify ecosystem is the integration with Shop Pay (Shopify’s proprietary payment processor). If a customer uses Shop Pay to check out, Shopify covers the cost of those emissions. You only pay to offset orders processed through other payment methods, effectively reducing your overhead.

Your Impact

The dashboard also includes an "Impact" section. This gamifies the data by showing you the estimated area of rainforest you have protected. Shopify partners with organizations like Pachama to fund verified projects. For example, my contributions are currently funding a rainforest conservation project in Colombia, outside of Cali.

Implementation Suggestions & Critique

While the backend functionality is excellent, there is one area where the app falls short: Customer Communication.

Currently, the app lacks a native widget or badge to display at checkout. As a verified Shopify app, it would be incredibly powerful to have a badge at the checkout stage stating:

"This store offsets all shipping costs, verified by Shopify."

From a conversion rate optimization (CRO) standpoint, this is a missed opportunity. When customers see shipping costs, reminding them that the shipping is carbon-neutral helps justify the purchase and aligns with their values, potentially reducing cart abandonment.

My Recommendation: If you use this app, you must manually market it. Add a banner to your homepage or a note in your product descriptions to ensure your customers know you are investing in sustainability.

Final Verdict

Overall, I highly recommend the Offset app for Shopify merchants. It is a true "set it and forget it" solution. It provides precise calculations and handles the donations automatically without requiring manual data entry.

While I wish they offered better frontend widgets to display "social proof" at checkout, the low cost and ease of use make it a no-brainer for brands looking to modernize their e-commerce experience.