How to use this calculator
Enter order value, carrier plus packaging cost, customer shipping charge, and monthly orders. The calculator estimates net shipping cost per order, shipping ratio, and monthly impact.
#1060 · E-commerce Tool
WooCommerce Shipping Calculator
Estimate WooCommerce shipping profitability by comparing carrier cost, packaging, customer shipping charge, and monthly order volume. Use it to set free shipping thresholds without eroding margin.
Calculator
E-commerce inputs$
$
$
orders
Ad space
What the result means
Shipping is healthy when the cost absorbed by the store is small relative to order value. High shipping subsidies can quietly erase profit.
Net Shipping Cost = Carrier Cost + Packaging - Customer Charge. Shipping Ratio = Net Shipping Cost / Order Value × 100.
A shipping ratio below 8% is strong, 8% to 15% is average, and above 15% needs action.
Example calculation
If order value is $80, carrier plus packaging cost is $11, customer pays $5, and monthly orders are 300, the store absorbs $6 per order or $1,800 per month.
Tips for better results
- Set free shipping thresholds above profitable AOV levels.
- Reduce dimensional weight with better packaging.
- Compare carrier rates at different order volumes.
FAQ
How do I calculate WooCommerce shipping cost per order?
Add carrier cost and packaging cost, then subtract what the customer pays for shipping. The remainder is the store shipping subsidy.
What should my WooCommerce free shipping threshold be?
Set the threshold high enough that the increased order value covers the shipping subsidy and protects profit margin.
Why is free shipping hurting my WooCommerce profit?
Free shipping hurts profit when order value is too low, package cost is high, or the shipping subsidy exceeds the extra margin gained.
How can I reduce WooCommerce shipping costs?
Use smaller packaging, compare carriers, negotiate rates, increase order value, and set location-based shipping rules.
What is a good shipping cost percentage for ecommerce?
Many stores try to keep absorbed shipping cost below 8% to 10% of order value, depending on product margin and category.
Related calculators
Shipping decision table
| Metric | Use |
|---|---|
| Net Shipping Cost | Amount the store absorbs per order. |
| Shipping Ratio | Shipping subsidy as a share of order value. |
| Monthly Impact | Total shipping burden at current order volume. |
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