Shipping and Return Labels

Set Up Shippo for Return Shipping Labels

Updated Oct 16, 2026

This article shows you how to enable Shippo so it appears as an option when generating return shipping labels, store your Shippo API key securely, and optionally default those labels to scan-based billing. Use it when you want to generate return labels through Shippo for USPS, FedEx, and UPS.

How it works

When Shippo is turned on, it appears as a provider in your Return Shipping Label options. The integration has three linked settings, and they must be enabled in order: the Shippo toggle unlocks the API key field and the scan-based label option, both of which stay disabled until Shippo is active.

The scan-based option controls whether return labels for USPS, FedEx, and UPS default to scan-based billing, meaning you are only charged when the label is actually scanned. You can override this per-return if needed.

Set it up

  1. Go to Integrations > Shipping > Shippo Integration.
  2. Turn on Show Shippo in my Return Shipping Label options. This is off by default. Once active, the API key field and the scan-based option become editable.
  3. In the Shippo API Key field, paste the API key from your Shippo account. The value is encrypted when you save your settings.
  4. (Optional) Turn on Default to scan-based return labels for USPS, FedEx, and UPS (charge only when scanned). This is off by default. When enabled, new return labels default to scan-based billing, which you can still override on an individual return.
  5. Save your settings.

Updating an existing API key

If a Shippo API key is already saved, the field displays masked dots rather than the raw value. To change it, clear the field completely and enter the new key, then save.

Troubleshooting

  • The API key field or scan-based option is greyed out: These fields only become editable once Show Shippo in my Return Shipping Label options is turned on. Enable the Shippo toggle first, then set the key and the scan-based option.
  • Shippo isn't appearing in your Return Shipping Label options: Confirm the Shippo toggle is on and your settings were saved. The toggle defaults to off, so it must be explicitly enabled.
  • Your updated key isn't taking effect: Because an existing key shows as masked dots, you must clear the field entirely before entering the new key and saving.

Plan requirements

The Shippo integration, the API key field, and the scan-based default option each require at least the Standard plan.

Related articles