How to use this calculator
Enter per-shipment shipping cost, packaging cost, number of subscribers, and shipping fee charged.
- Use monthly shipment volume.
- Include packaging material cost.
- Compare net shipping cost with subscription margin.
Measure the real shipping burden in a subscription business. Include shipment cost, packaging, subscribers, and shipping fee to see whether fulfillment is profitable.
Enter per-shipment shipping cost, packaging cost, number of subscribers, and shipping fee charged.
The result shows whether your shipping fee covers fulfillment cost or whether your business is subsidizing shipping.
Free or underpriced shipping can increase conversion but may quietly reduce contribution margin.
If shipping costs $8, packaging costs $2, 500 subscribers receive shipments, and each pays $5 shipping, net shipping cost is $2,500.
Shipping should fit within your contribution margin after product, packaging, and fulfillment costs.
Free shipping can improve conversion, but it should be built into the subscription price or minimum order value.
Multiply per-shipment shipping and packaging costs by subscriber count, then subtract shipping fees collected.
Many businesses try to keep shipping and fulfillment costs within a controlled share of revenue, often below the gross margin cushion.
Optimize packaging, negotiate carrier rates, batch shipments, reduce zones, and increase the minimum subscription price.
| Module | Details |
|---|---|
| Main Result | Net shipping cost or surplus |
| Cost Ratio | Shipping cost per subscriber |
| Health Score | Fee recovery and cost burden |
| Recommendation | Fulfillment optimization guidance |