Shipping Cost per Order Calculation

Shipping cost is more than the carrier label. Sellers should include packaging materials, handling time, insurance, delivery confirmation, replacement allowance, and any free-shipping subsidy.

For cross-border sellers, currency and remote-area fees can also change the real cost.

Shipping cost per order = postage + packaging + handling + insurance + expected loss allowance - shipping charged to customer.

If the result is positive, that amount must be covered by product margin. If the result is negative, shipping charged may be contributing to margin.

Track shipping cost by package profile. Light, fragile, heavy, and international orders should not share one generic shipping assumption.

Update prices when carrier rates change. Shipping inflation quietly destroys margin.