See how shipping costs affect your profit and margin
Currency
Revenue
€
€
Actual Costs
€
€
%
€
€
Tax / VAT Settings
%
Shipping is one of the biggest hidden profit killers in ecommerce. Free shipping offers, undercharging, and fluctuating carrier rates can turn a profitable product into a loss with no obvious warning. The Shipping Impact…
Shipping is one of the biggest hidden profit killers in ecommerce. Free shipping offers, undercharging, and fluctuating carrier rates can turn a profitable product into a loss with no obvious warning. The Shipping Impact calculator shows exactly how much each order's shipping costs you in real margin terms.
1
Offering free shipping typically increases conversion rates but transfers the entire shipping cost directly to your margin.
2
If you charge $4.99 shipping but your carrier charges $6.50, you're absorbing $1.51 per order — invisible unless you track it.
3
For high-volume sellers, even a $0.50 shipping shortfall per order adds up to thousands in lost profit annually.
Frequently asked questions
It depends on your margin. Free shipping increases conversions but the cost comes directly from your profit. Use the Shipping Impact calculator to see whether your current margin can absorb free shipping or whether you need to adjust your pricing.
Enter your selling price, product cost, actual carrier shipping cost, and the shipping amount you charge the customer. ProfitGenie will show you your shipping recovery rate and the net impact on your profit margin.
Payment fees are calculated on the total order value including shipping, and VAT may apply to the shipping charge. This means the cost of shipping has a compounding effect that is easy to underestimate.
Ideally, charge enough to cover your actual carrier cost. If your margin supports it, offering flat-rate or free shipping on orders above a threshold can improve average order value while protecting profit on smaller orders.
