Shipping Cost measures the total shipping expenses incurred to fulfill orders, based on your configured shipping cost rules.
Shipping Cost = SUM ( Shipping Cost per Order )
| Metric | Definition |
|---|
| Shipping Cost per Order | Individual shipping fees applied per order from your cost configuration |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Sum |
Example
Your store fulfilled 2,847 orders in February with total shipping expenses of $14,235, averaging $5.00 per order shipped.
| Month | Orders | Shipping Cost | Per Order |
|---|
| February | 2,847 | $14,235 | $5.00 |
| March | 3,120 | $15,288 | $4.90 |
How It Works
Shipping Cost aggregates the shipping expenses from your cost configuration. These costs are applied to each order based on rules you define — flat rate, weight-based, zone-based, or carrier-calculated. The metric is deducted from revenue when calculating contribution margin.
When to Use
| Scenario | Action |
|---|
| Contribution margin analysis | Deduct from CM1 to calculate CM2 |
| Carrier negotiation | Track trends to justify volume discounts |
| Free shipping threshold | Compare shipping cost vs revenue lift from higher AOV |
| Regional profitability | Segment by shipping zone to identify cost outliers |
| Metric | Relationship |
|---|
| Shipping Cost Per Order | Average shipping expense per order |
| Shipping Cost % | Shipping as percentage of net revenue |
| Total Fulfillment Cost | Combined shipping, handling, and fulfillment |
