Formula
Profit is the difference. Margin divides that difference by the amount charged:
Shipping profit = charged to the buyer − paid to the carrier
The product's profit is not included.
Assumptions
- Both amounts are for the same shipment.
- The amount charged is greater than zero.
Worked example
Charging $12.00 and paying $7.50 leaves a shipping profit of $4.50.
Input definitions
- Charged to the buyer
- Shipping collected on the order.
- Paid to the carrier
- What the label actually cost. Zero is allowed.
Limitations
This is a planning estimate, not payroll, tax, shipping, or marketplace advice. The currency control changes the symbol only.
Questions
Is this the product margin?
No. It is only the shipping line. Product profit stays on the profit and marketplace profit pages.
What if the carrier costs more?
The result is a shipping loss.