Online Store Profit and Shipping Calculator

Free delivery gets people to buy more when done right. When poorly executed, it eats profits. How can you ensure free delivery builds your profits more than charging for delivery?

The most popular method by big retailers is free shipping for a minimum order value (MOV). Offer free shipping above an order total.Shopify Conversion Rate Optimization

Before you use the tool, read the pricing section of my book quoted to know if a MOV can work for your store.

The tool calculates the profit of your online store based on revenue, margin, and shipping charges. Use it to calculate how your delivery charges affect profit. Sometimes free shipping is not always the best option because you need increased order volume and average order value to cover the cost absorption.

Play around with the “average shipping cost to customer”, “total orders”, and “average order value” within reason. If you decrease the shipping cost to customer, assume a slight increase in total orders. Copy-and-paste the values in a document then repeat with different values to get a feel for your ideal shipping cost strategy.

Enter Your Online Store Information

Total orders (?What is the total orders? The number of orders received over the time period analyzed.):

Average order value (?What is the average order value? The average revenue per customer order.):

Average profit margin (?What is the average profit margin? A percentage value that is the average profit made per product sold. For example: 30%. Do not include the percentage sign.):

Average shipping cost to customer (?What is the average shipping cost to customer? The average amount a customer pays for delivery per order.):

Average shipping cost to store (?What is the average shipping cost to store? The average amount the store pays to have a customer’s order delivered.):

Calculate