Shipping Cost % measures your shipping expenses as a share of net revenue, showing the fulfillment burden on your margins.
| Metric | Definition |
|---|
| Shipping Cost | Total shipping expenses from configured cost rules |
| Net Revenue | Revenue after discounts and refunds |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
Your store generated $125,000 in net revenue last month, with $6,250 in shipping costs.
| Period | Shipping Cost | Net Revenue | Shipping Cost % |
|---|
| January | $6,250 | $125,000 | 5.0% |
| February | $7,150 | $130,000 | 5.5% |
| March | $5,600 | $140,000 | 4.0% |
How It Works
Shipping Cost % divides your total shipping expenses by net revenue. Unlike Shipping %, which tracks shipping revenue collected from customers, this metric tracks your actual fulfillment cost burden. A lower percentage indicates better shipping economics or improved carrier negotiations.
When to Use
| Scenario | Action |
|---|
| Contribution margin analysis | Track CM2 impact from fulfillment costs |
| Carrier negotiation | Benchmark trends before and after rate changes |
| Free shipping strategy | Compare cost burden vs revenue impact |
| Profitability optimization | Identify when shipping costs erode margins |
| Metric | Relationship |
|---|
| Shipping Cost | Numerator — total shipping expenses |
| Shipping Cost Per Order | Per-order shipping expense |
| Net Revenue | Denominator — revenue basis |
| Shipping % | Shipping revenue as % of total (customer-facing) |
