SHOPIFY · AUSTRALIA POST · AUSTRALIA
Understand the profit behind every shipment
Calculate Shopify shipping margins using postage, packaging and handling costs. Learn how to review Australia Post rates, markups and free shipping.
What is shipping profitability?
Shipping profitability is the difference between the shipping revenue you collect and the costs of fulfilling the delivery. Start with postage, packaging and handling. Then include any other delivery costs relevant to your business. Shipping margin is only one part of overall order profitability.
Calculate your shipping contribution
Shipping contribution = shipping charged to the customer − postage − packaging − handling − other delivery costs. Use a consistent tax basis for all amounts. For example, on the same tax basis, $12 collected less $9 postage, $1 packaging and $1.50 handling leaves $0.50 before any other costs. These are illustrative amounts, not Australia Post prices.
Why an Australia Post quote is only the starting point
A carrier quote estimates postage for the parcel and destination you supply. Your final carrier charge can differ. Incorrect weights, dimensions or packaging assumptions can also change the result. Compare sample quotes with actual postage charges before relying on a pricing rule.
Choose a markup with your costs in mind
A percentage markup and a fixed-dollar markup behave differently as postage changes. Test light and heavy orders, single and multiple items, and local and distant postcodes. Minimum prices can help cover a base cost; maximum prices can mean you absorb part of the shipping cost.
Can you afford free shipping?
Free shipping means the store funds delivery. Compare the product contribution from an order with its fulfilment costs before choosing a threshold. Test typical baskets and lower-margin products rather than assuming a larger order always covers postage. This is a planning exercise, not a claim that the app calculates a free-shipping threshold.
Turn the review into checkout rules
Shipping Calculator lets you preview Australia Post rates and configure shipping markups and service pricing for Shopify. Use those previews to test your assumptions, then reconcile real shipping costs separately. The app does not guarantee profit or automatically reconcile carrier invoices.