Estimate Etsy shipping profit, packaging cost impact, and whether customer shipping charges protect your order margin. Use it to set safer shipping rates or a profitable free shipping threshold.
A positive shipping profit means the order covers delivery and packaging costs. A high shipping cost ratio signals that shipping may be weakening your product margin.
Healthy Etsy shipping usually keeps shipping cost under about 10% of order value or recovers the cost through price and shipping charges.
For an $85 order with $8 shipping, $1.50 packaging, and $10 charged to the customer, shipping profit is $0.50 and the shipping cost ratio is 9.41%.
Charge enough to cover postage, packaging, and marketplace fee impact while keeping the total order price competitive.
Free shipping works when the shipping cost is built into product pricing or limited to orders above a profitable threshold.
The cheapest carrier depends on package weight, destination, delivery speed, and tracking requirements.
Shipping fees reduce profit when the seller absorbs postage or undercharges the buyer.
Under 10% of order value is usually healthy, while higher ratios require pricing or packaging review.
| Metric | How to use it |
|---|---|
| Shipping profit | Shows whether delivery is profitable or subsidized. |
| Cost ratio | Measures shipping burden relative to order value. |
| Threshold | Helps set a safer free shipping minimum. |