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Combined shipping in Commerce

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How does Commerce handle situations where a client purchases say 10 items of the same product at once? I see that I can add the dimensions and weight PER item and Commerce will calculate shipping via EasyPost based on this but it will estimate the same amount of shipping for 1 item vs an order of say 10 items. This obviously would be wrong.

Is there a setting for this? I checked but nothing really stood out. If combined shipping is not allowed, this would be a deal breaker for me. =(

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