Shipping & Fulfillment Calculator

Find out the real margin after logistics costs. Shipping, packaging, and returns can fundamentally change profitability.

Price for the customer

Cost of goods

Average per order

Box, tape, labor, etc.

What % of orders are returned

Return shipping + labor

Results

Real Margin after Logistics
---
---
COGS: ---
Shipping: ---
Fulfillment: ---
Returns (expected): ---

How we calculate it

Base Margin = Sale Price - COGS
Logistics = Shipping + Fulfillment
Expected Returns = Return Rate × Return Cost
Real Margin = Sale Price - COGS - Logistics - Returns
Margin % = (Real Margin / Sale Price) × 100

Example

Price $65, COGS $35, shipping $5, packaging $3, returns 5% at $7:
Logistics = 5 + 3 = $8
Exp. Returns = 0.05 × 7 = $0.35
Real Margin = 65 - 35 - 8 - 0.35 = $21.65
Margin % = 21.65 / 65 × 100 = 33.3%

Why is it important?

Logistics costs are often underestimated. With a gross margin of 40%, shipping + fulfillment can take 15-20% of profit, so the real margin drops to 20-25%.

Tips

  • Minimum cart value: free shipping above a certain threshold reduces shipping/order
  • Optimize packaging: lighter + smaller = cheaper
  • Reduce returns: quality photos, size charts, clear descriptions

Frequently Asked Questions (FAQ)

What if I offer Free Shipping?

In that case, you pay the entire shipping cost. It is a "marketing cost" that reduces your margin. Enter the shipping costs into the calculator, but leave the shipping price for the customer (if there was one) aside, or consider the revenue from shipping to be 0.

What is included in "Fulfillment"?

Everything that happens in the warehouse from receiving the order to loading it into the courier's car. This includes: box price, tape, filler material, label/invoice printing, and mainly human time (warehouse worker's wage calculated per minute).

What is the average Return Rate?

It strongly depends on the segment. Fashion (clothing) commonly has 20-40% returns (due to sizes). Electronics around 5-10%. Cosmetics and food very low (under 3%). Returns are a "profit killer" because you pay shipping both ways and often cannot sell the goods as new anymore.

Why it matters

Free shipping is a powerful marketing tool, but a silent margin killer. You must know, to the exact cent, how much it costs you to send one package (including box, tape, warehouse worker's labor, and handling returns).

Ignoring these "hidden" costs leads to situations where an e-shop generates huge turnover, but at the end of the month, the account is empty. This calculator reveals the truth about your logistics efficiency.

Related Calculators

Discount / Margin

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COS Calculator

If logistics eats 10% of your margin, you must have stricter COS goals.

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Marketing Budget

How much is left for marketing after paying for goods and logistics?

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