Express shipping cost as a share of revenue, one of the largest hidden drags on ecommerce margin.
The shipping ratio is the share of total revenue that total shipping cost represents, expressed as a percentage. The same figure is also shown per 1,000 and as a "one in every N" odds statement, which is easier to reason about when the rate is very small. Absolute counts hide scale — a rate normalises the number so you can compare periods, channels or cohorts of different sizes, where lower is better.
Shipping Cost Percentage
Shipping Cost as Share of Revenue = Total shipping cost ÷ Total revenue × 100
Shipping Cost as Share of Revenue = Total shipping cost ÷ Total revenue × 100 The shipping ratio is the share of total revenue that total shipping cost represents, expressed as a percentage. The same figure is also shown per 1,000 and as a "one in every N" odds statement, which is easier to reason about when the rate is very small.
Absolute counts hide scale — a rate normalises the number so you can compare periods, channels or cohorts of different sizes, where lower is better.
This calculator takes 2 inputs: Total shipping cost, Total revenue. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.