Shipping zones allow you to discount shipping to local customers, and add a surcharge to customers who are located farther away.
If you choose to use the Shipping Zones feature, the shipping price will be computed by adding or subtracting the percentages specified in the % fields.
The "average" shipping price (entered as Base and Incremental shipping) will be applied to orders shipped 1500 miles. Shipping for orders to closer or further than that distance will be discounted or surcharged according to the percentages entered.
We suggest a 50% local discount, a 50% distance surcharge, and a 100% surcharge for Hawaii and Alaska. These percentages can be adjusted on the Settings page, if you so choose.