Shopify Setup Guide for Hawaii DIYers: Launch Your Online Store

Setting up a Shopify store in Hawaii requires ignoring the “default” advice that works for the mainland. If you follow the standard setup wizard, you will likely mishandle the General Excise Tax (GET), lose money on shipping to the East Coast, and frustrate local buyers with a site that doesn’t load on island networks. This guide walks you through the specific configuration needed to make Shopify work for the Hawaii market.

Step 1: The “General Excise Tax” (GET) Configuration

Shopify’s default tax engine is built for standard US Sales Tax (paid by the buyer). Hawaii’s GET is a tax on the business (often passed to the buyer) with rates that vary by island (e.g., 4.5% on Oahu vs. 4.0% – 4.25% on neighbor islands). You must ensure Shopify collects this correctly based on the destination of the product.

1. Go to Settings > Taxes and duties.
2. Click United States.
3. In the “Regions you’re collecting in” section, click Collect sales tax.
4. Select Hawaii and enter your GET license number (GE-XXX-XXX-XXXX-XX).
5. Critical Check: Shopify’s modern tax engine (Shopify Tax) generally automates the 4.0% vs 4.5% rate based on the customer’s zip code. However, verify this by adding a test product to your cart and entering a Honolulu zip code (e.g., 96814) vs. a Hilo zip code (e.g., 96720) to ensure the rate changes automatically.
6. Price Display: If you want to include the tax in your price (common for local plate lunch spots or farmers market vendors), go to the main Taxes and duties page and check “Include tax in prices”. Note: This will make your prices look higher to tourists, so use cautiously.

Step 2: Solving the “Zone 9” Shipping Problem

You must prevent a customer in New York from paying the same shipping rate as a customer in Kalihi. Mainland carriers classify Hawaii as “Zone 9,” meaning high costs and slow speeds. You need distinct shipping zones.

1. Go to Settings > Shipping and delivery.
2. Click Manage next to your “General shipping rates” profile.
3. Create the Local Zone:
   • Click Create shipping zone. Name it “Hawaii Local”.
   • Search for “United States” and click the arrow to expand the states list.
   • Uncheck all states except Hawaii.
   • Add rates for this zone (e.g., “Free Shipping” or “Local Flat Rate $5”).
4. Create the Mainland Zone:
   • Click Create shipping zone. Name it “Mainland US”.
   • Select “United States” again, but this time uncheck Hawaii.
   • Add distinct rates here (e.g., “USPS Flat Rate” or calculated carrier rates) that reflect the higher cost of trans-Pacific shipping.

Step 3: Enable “Local Delivery” (The Radius Feature)

For businesses like florists, bakeries, or lei makers, you can bypass shipping entirely for nearby neighbors. Shopify has a built-in feature for this that is better than using a shipping zone.

1. Go to Settings > Shipping and delivery.
2. Scroll down to the Local delivery section.
3. Select your fulfillment location (e.g., your shop or home office).
4. Check This location offers local delivery.
5. Radius vs. Zip Code:
   • Delivery Radius: Set a strict mile radius (e.g., 10 miles) from your address. This is often safer than zip codes in Hawaii, where a single zip code (like 96720 in Hilo) can cover vast, drivable distances.
   • Delivery Price: Set a price (e.g., $15) and a minimum order value (e.g., $50) to ensure the drive is worth your gas money.

Step 4: Mobile-First Optimization for Tourists

Visitors to Hawaii are your “invisible” second market. They are browsing your site on smartphones while in transit. If your site is heavy, they will bounce.

• The “Thumb Zone” Rule: Ensure your “Add to Cart” button is sticky or easily reachable with a thumb. Avoid menus that require “hovering” to see options, as this does not work on touchscreens.
• Compress Images: High-res photos of the Na Pali coast are beautiful but deadly for load speeds on spotty island 4G. Use Shopify’s free apps or external tools (like TinyPNG) to compress every image before uploading.
• Remove Pop-ups: On a mobile screen, an “Email Signup” pop-up often covers the entire page and the “Close” X is hard to hit. This frustrates tourists trying to quickly check your hours or location. disable them for mobile users if possible.

Step 5: Trust Signals (Authenticity Check)

Local residents are skeptical of dropshippers posing as local brands. Your site design must signal authenticity immediately.

• Photography: Do not use stock photos of Caribbean beaches (white sand, turquoise water). Hawaii beaches have distinct textures (lava rock, golden/dark sand). Locals spot the difference instantly.
• About Us Page: Explicitly state your location (e.g., “Made in Kaimukī,” not just “Hawaii”). Use the correct diacritical marks (ʻokina and kahakō) in your copy (e.g., Hawaiʻi, Kamaʻāina). This subtle detail proves you are truly local.