Shipping Margin Calculator
Calculate true profitability including shipping costs and packaging expenses for e-commerce businesses
Order Details
Enter your product pricing and shipping information
Profitability Analysis
Net Profit per Order
$0.00
0.0% net margin
Gross Profit
$0.00
0.0%
Shipping Profit/Loss
$0.00
Cost Breakdown
Product Cost$50.00
Shipping Cost$8.00
Packaging Cost$2.00
Total Costs$0.00
Your net margin is below 20%. Consider increasing prices or reducing shipping costs.
Understanding Shipping Margins
Gross Margin: Product selling price minus product cost, divided by selling price. Doesn't include shipping.
Net Margin: Total revenue (including shipping fees) minus all costs, divided by total revenue. The true profitability metric.
Shipping Profit/Loss: The difference between what you charge customers for shipping and your actual shipping + packaging costs.
E-commerce Profitability Tips
•Target 30-40% net margins for sustainable e-commerce
•Factor in packaging costs - boxes, tape, labels add up
•Negotiate bulk shipping rates with carriers to reduce costs
•Consider free shipping thresholds to increase average order value
•Test different shipping fee structures to maximize conversion and profit