Shipping Markup Calculator
What to charge for shipping, and whether it covers cost.
Recovered above cost
$0.40
5.3% markup on true cost
Recovering full cost including packaging and labour is reasonable. Charging materially above it is a price rise that buyers compare closely.
How the Shipping Markup Calculator works
Charging shipping at cost sounds fair and usually loses money, because the cost people compare against is postage alone. Charging well above it irritates buyers and, on some marketplaces, breaches policy. The defensible figure is the one that covers postage, packaging and the minutes spent.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
Should I make a profit on shipping?
Covering full cost — postage, packaging and labour — is not profit, it is recovery, and it is entirely reasonable. Charging materially above that is a price increase, and buyers compare shipping charges more closely than item prices.
What do buyers consider excessive?
Shipping that is large relative to the item price is the usual trigger. A £9 shipping charge on a £12 item reads as a trick even when the postage genuinely costs that, which is often an argument for building it into the price instead.
Do marketplaces restrict shipping charges?
Several do, because inflated shipping was historically used to reduce commission. Policies range from caps to outright commission on shipping. Check the platform before relying on shipping as a margin source.
Is free shipping better than charging accurately?
Usually for conversion, provided the cost is built into the price and the average order value supports it. The break-even calculator shows the order value at which it stops costing you.