A study in early 2019 by Bain & Company found that grocery delivery in the United States was set to “explode.”
If you’re looking to capitalize on this opportunity and break into the gig economy, one way you can do so is by becoming a shopper and delivering orders to people in your area.
There are many grocery store delivery services available, including popular options like Shipt and Instacart.
Today, we’re going to break down what it’s like to work for Shipt and what you can earn if you choose to work for this grocery delivery service.
By the end of this article, you should have a clear understanding of the potential Shipt shopper pay so you can determine whether this app is right for you.
Table Of Contents
Shipt Shopper Pay: How Much Can You Make?
Multiple factors go into determining your Shipt pay rate.
However, the company says that experienced shoppers make roughly $22 per hour, based on an average of 30 trips. On average, drivers earn $15-$25 per hour.
It’s easy to look at this figure and think that you’re making more than minimum wage and that this is good pay. However, when you’re a Shipt shopper, you work as an independent contractor, not an employee.
Although this provides perks like being able to set your own schedule, it can also significantly impact your rate of pay.
Related: How much do Instacart drivers make?
How Much Can I Earn Per Order?
According to Shipt, the average Shipt shopper can earn up to $14 per hour, but it depends on your determination.
The more hours you put in, the more you’ll be making in a day.
Experienced Shipt shoppers who practice good customer service and understand the system can make as much as $24 per hour, including tips.
For each completed Shipt order, Shipt shoppers earn $5 plus 7.5% of the total order cost.
Shipt shoppers earn 100% of the tips received, but the company never guarantees tips.
Shipt encourages its members to tip drivers, but it depends on the customer’s generosity.
Shipt Shopper Pay Structure
As mentioned, there are several factors that affect the Shipt shopper pay rate.
Drivers receive $5 for every trip that they complete, in addition to 7.5% of the total order cost.
So, let’s say that a customer places a $200 order. You’ll keep 7.5% of the order, or $15. Add this to the $5 base pay, and you’ll receive $20 for the order.
Drivers also get to keep 100% of the tips they receive. Unfortunately, tipping on the site can be inconsistent, as one driver revealed to Cooking Light.
The company does not explicitly spell out how much customers should tip. One Reddit thread seemed to find a 10% tip acceptable.
So, for the sake of discussion, let’s say you earn a 10% tip on your $200 order. The $20 payment from Shipt plus the $20 tip provides a net pay of $40.
Your hourly rate of pay would then depend on how quickly you were able to complete the order for the customer.
However, you’ll need to consider taxes in your net pay. Because you are an independent contractor, you have to pay self-employment taxes.
This means that you’ll pay 15.3% for Social Security and Medicare taxes, as opposed to the 7.65% that regular employees pay.
You’ll need to make estimated quarterly tax payments to the IRS and your state government to avoid penalties.
Pro Tip: Track Expenses With Freshbooks
Use Freshbooks to track your income and expenses, so that you never miss a thing
You’ll also need to consider expenses like car maintenance.
One of the requirements of being a Shipt shopper is to have a valid U.S. driver’s license, a reliable vehicle, and auto insurance.
You can deduct expenses from your gross income when filing taxes, but you’ll also need to pay for services as they come up.
For instance, imagine you pay $5 in gas for your $40 order.
Your net pay is $35, not factoring in taxes.
Having said this, the only real driving you’ll be doing is going from the grocery store to a customer’s house, and then potentially back to the grocery store to pick up an order for another customer.
You shouldn’t put nearly as much wear-and-tear on your vehicle as you would driving for Uber or Lyft.
When Do Shipt Shoppers Get Paid?
Shipt pays its shoppers every Friday of the week. A workweek is from Monday through Sunday.
Shoppers can also receive their pay instantly through Stripe Connect.
There is no specific time when the money will arrive, just that it gets processed every Friday.
How Does Shipt Pay?
When Shipt shoppers sign up to work, they have two choices: Instant Pay or Direct Deposit.
Stripe Connect allows shoppers instant pay once per day, but only if they have one successful weekly payout.
Setting up your bank account with Shipt enables you to collect your earnings every Friday after the first week of work.
Should I Pay For The Groceries?
If you end up paying for the groceries, you’re doing it wrong.
No Shipt shopper is responsible for paying for the groceries; they are only there to collect and deliver.
The customer is in charge of making the payment for the groceries on the app during checkout.
Every Shipt shopper is given a prepaid Visa card from the company after being approved for work.
Once it comes through the mail, the shopper sets up their Shipt card on the app with their account.
So whenever the shopper chooses an order, funds are added to match the number of items purchased.
Should I Pick Large or Small Orders?
Choosing the type of orders depends on the Shipt shopper’s personal preference and work style.
Some shoppers like to focus on the big orders.
They believe that maximizing Shipt orders will produce bigger payouts.
Those can take up a good portion of the day but offer good tips to the right customer.
New drivers should focus on doing a lot of smaller orders.
With multiple orders, there is a better chance of getting several tips, which will add to the overall pay.
Even small orders can lead to a high price depending on what items the customer is buying.
Can I Earn Extra?
Over the years, expert shoppers found efficient ways to maximize their earnings with Shipt.
Customer service can be rewarding in this field of work.
The Shipt app allows customers to communicate with shoppers in real-time during grocery shopping.
Customers can add additional items they might have forgotten, and shoppers can ask questions about substituting items.
Understanding the hours around your area can also increase income.
Discovering the peak hours and knowing when the busiest shopping days occur gives you an advantage over competing shoppers.
Tracking your miles is helpful for deduction when tax season rolls around.
Frequently Asked Questions
Still wondering about some of the ins and outs of Shipt shopper pay?
The answers to these frequently asked questions should help.
Do I have to pay for groceries out of pocket?
Once you’re accepted to work for Shipt, the company will provide you with a prepaid card.
When you receive and accept an order, Shipt will fund this prepaid card with the approximate amount of the order.
Typically, the company provides extra funds on the card in case of unexpected groceries.
You should never have to pay for a customer’s grocery order out of your own pocket.
How do Shipt Shoppers get paid?
Shipt pays its independent contractors via direct deposit, so you’ll need to have a bank account on file that will allow you to receive your funds.
The company sends direct deposits every Friday for the work completed the previous Monday through Sunday.
How do I apply to work for Shipt?
To work for Shipt, you’ll first need to apply online.
Then, you’ll need to complete an interview with the company and pass a background check.
If you’re approved, you’ll be invited to download the Shipt Shopper app, which will allow you to start completing orders.
See the tutorial on our page to get started.
Is Shipt available in my area?
Before you commit to being a Shipt shopper, you should make sure that there are an array of stores in your area using Shipt, thereby maximizing your earnings potential.
The Shipt home page has a section that allows you to enter your zip code to see the stores offering delivery in your area.
Start Earning With Shipt
As an independent contractor, Shipt allows you to be your own boss.
You can have a flexible schedule, working either part-time or full-time.
Overall, Shipt shopper pay is pretty good, but a good portion of the pay is dependent on tips, and you’ll need to be mindful of expenses cutting into your net earnings.
But, if Shipt exists in your area, it’s worth checking out.
Shipt could become a reliable side hustle that allows you to earn extra money.
Shipt delivers prescriptions, It just requires a brief certification course like the alcohol delivery. Prescription deliveries typically do not tip, but they are allowed.