Calculate shipping and fulfillment cost for a physical product using product price, actual weight, dimensional weight, carrier rate, packaging, insurance, and fuel surcharge.
Shipping cost percentage shows how much selling price is consumed by fulfillment. Dimensional weight can make light but bulky packages expensive.
Small parcels often target 5–10% shipping cost, standard e-commerce 8–15%, and heavy or bulky products 15–25%.
A 3 lb item in a 12 × 8 × 6 inch box has dimensional weight of 4.1 lb. At $2.20 per lb plus fees, shipping is about $12.30.
Calculate billable weight from actual and dimensional weight, multiply by carrier rate, then add packaging, insurance, and surcharges.
Dimensional weight prices a package based on volume, so large lightweight boxes can cost more than their actual weight suggests.
The cheapest carrier depends on weight, zone, dimensions, delivery speed, and negotiated discounts.
Use smaller packaging, redesign product packing, compare carriers, split inventory by region, and review dimensional weight.
Shipping can be included in price when customers value free shipping, but the product margin must still absorb the cost.
| Metric | Meaning |
|---|---|
| Health Score | 0–100 score based on margin, cost pressure, risk, or efficiency. |
| Status | Excellent, Good, Average, or Needs Improvement. |
| Recommendation | Automatic next-step guidance based on the result. |
| Benchmark | Industry-style range for practical comparison. |