Shipping costs represent the cost you pay to deliver orders to customers. Adding shipping costs enables accurate gross profit and contribution margin calculations.
How Shipping Costs Work
Shipping costs can be entered as:
- Flat rate per order: Same cost for every order
- Percentage of shipping revenue: e.g., 80% of what customer paid
- Per-order values: Custom cost per order via upload
Where Shipping Costs Appear
| Module | Usage |
|---|
| Executive Summary | Gross profit calculation |
| Orders Deep Dive | Order-level profitability |
| LTV & Retention | Profit-adjusted LTV metrics |
Setting Up Shipping Costs
Access Configuration Sheet
Open your Configuration Sheet from SourceMedium settings
Navigate to Shipping tab
Find the shipping costs section
Enter your method
Choose flat rate, percentage, or upload order-level costs
Common Approaches
| Approach | Best For | Example |
|---|
| Flat rate | Simple, consistent shipping | $5.00 per order |
| Percentage | Variable shipping costs | 75% of shipping charged |
| Per-order upload | Complex/negotiated rates | CSV with order-specific costs |
If you use multiple carriers with different rates, consider using the average cost across all orders. You can refine later with per-order data.
