Compare shipping revenue collected against the carrier cost actually incurred.
Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup. Margin is what funds every fixed cost in a delivery business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
Shipping Profit
Margin % = (Shipping revenue charged to customers − Carrier and packaging cost) ÷ Shipping revenue charged to customers × 100
Margin % = (Shipping revenue charged to customers − Carrier and packaging cost) ÷ Shipping revenue charged to customers × 100 Margin divides profit by revenue; markup divides the same profit by cost. They are routinely confused, so both are shown — a 50% margin is a 100% markup.
Margin is what funds every fixed cost in a delivery business, and mispricing by a few points is the difference between scaling profitably and scaling losses.
This calculator takes 2 inputs: Shipping revenue charged to customers, Carrier and packaging cost. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.