Prices are set per zone and per method, so this comes after the zones rather than before.
The four rules
Free — Buyers pay no shipping. It is a price rule, not a gift: the cost still exists and it comes out of what you charged for the item.
Flat — Charge per order, a set amount. The simplest, and right when your parcels are similar.
By weight — slabs, with + Add weight slab, and then Charge per extra 500 g above the last one. Right for anything where weight varies: books, records, coins, lots.
By price — Charge by order value, with + Add price band and Charge above the last band. Right when delivery cost tracks value rather than weight.
Free above a threshold
Any rule can carry Free shipping above an amount, which a buyer sees as Free shipping on orders of {amount} or more. Cost it before you set it — it works beautifully for light items and badly for heavy ones. Delivering books is the clearest example of the second.
Weight slabs go upwards
The editor refuses slabs that go backwards — Slab weights should go up in order. — which catches the commonest mistake in this screen.
Check what a buyer is actually charged
Set the rule, then look at a real item going to a real PIN code. The number you see is the number they see.
And weigh the packed parcel, not the item. An underquoted delivery comes off your own balance rather than the buyer's. How delivery is charged.
Questions people ask
Which rule should I start with?
Flat if your parcels are similar, By weight if they are not.
Can different items use different rules?
Yes — each listing picks a delivery option, and options carry their own rates.
Does combining wins change the price?
Several wins in one show ship together by default, and you set what each later win adds.