Shipping % measures shipping revenue as a share of total revenue, helping you understand how free shipping promotions affect your margins.
Shipping % = Shipping Revenue ÷ Total Revenue × 100
| Metric | Definition |
|---|
| Shipping Revenue | Total shipping fees collected from customers |
| Total Revenue | Total revenue from all orders including shipping and taxes |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify |
| Aggregation | Ratio |
Example
Your store generated $125,000 in total revenue last month, with $8,750 coming from shipping fees.
| Period | Shipping Revenue | Total Revenue | Shipping % |
|---|
| January | $8,750 | $125,000 | 7.0% |
| February | $6,200 | $130,000 | 4.8% |
| March | $4,500 | $140,000 | 3.2% |
How It Works
Shipping % divides your shipping revenue by total revenue and multiplies by 100. A declining shipping percentage often indicates increased use of free shipping promotions or higher average order values that qualify for free shipping thresholds.
When to Use
| Scenario | Action |
|---|
| Launching free shipping promotions | Track how promotions reduce shipping % and impact margins |
| Analyzing margin trends | Compare shipping % across periods to understand profitability shifts |
| Setting shipping thresholds | Evaluate if free shipping thresholds affect customer behavior |
| Comparing customer segments | Check if new vs. returning customers have different shipping patterns |
| Metric | Relationship |
|---|
| Shipping Revenue | Numerator — total shipping fees collected |
| Shipping Per Order | Average shipping per transaction |
| Discount % | Similar percentage metric for discounts |
| Tax % | Similar percentage metric for taxes |
