Shipping Profit Calculator
See whether the shipping amount charged to a customer covers carrier, packaging and percentage-fee costs, and estimate the effect on total order profit.
Shipping profit example
Example: $50 item, $8 shipping charged, $6 carrier cost, $1 packaging, 15% marketplace fee, 2.9% payment fee, $0.30 fixed fee, $20 product cost and $3 advertising/other variable cost.
Total percentage fees = $10.38
Total fees including fixed fee = $10.68
Estimated full-order profit is $17.32. Shipping recovery after carrier, packaging and shipping-related percentage fees is about -$0.43.
Why sellers can lose money on shipping
A shipping charge that matches the carrier invoice may still be too low if packaging, handling and percentage marketplace or payment fees apply to the shipping amount. Free shipping can also reduce margin unless the product price is high enough to absorb fulfillment costs.
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