A carrier rate is only part of delivering an order. Packaging, handling and sometimes surcharges or remedial work cost money too. Calculate your own costs by order type first. Then decide what customers pay and test whether both small and large orders remain sustainable.
Map your parcels
Measure weight and dimensions after packing. Check destination, volumetric weight, collection or delivery options, insured value and contractual surcharges. Do not assume every light item fits letterbox delivery or every international parcel costs more; compare the actual services and contracts.
The customer charge is a choice
You can use a flat charge, free-shipping threshold or calculated rate, potentially by destination or product group. This determines who funds which portion. “Free shipping” does not remove costs; product contribution or other revenue must cover them.
Flat charge
Before choosing one flat customer charge, create three test baskets: one light item, several items together and an order requiring two parcels. Calculate carriage, packaging and handling for each. Test an unusual postcode too. Record your subsidy and where customers see any different charge before ordering.
Free above a threshold
Set the threshold using contribution, not average basket value alone. Additional items can add weight, packaging and return risk. Test combinations that reach the threshold and their contribution. Higher order value does not automatically mean higher profit.
Calculated carriage charge
A current carrier rate can help with varied sizes and destinations when your integration supports it. It does not automatically cover packaging, labour, incorrect dimensions, adjustments or returns. Compare customer receipts with your complete costs; you can still subsidise the order.
A transparent example
Fictional assumptions excluding VAT: €5 carriage, €1 packaging, €2 handling labour and €0.50 risk provision total €8.50. A €4.95 customer charge leaves €3.55 to fund elsewhere; free delivery leaves €8.50. This is neither a carrier tariff nor a full profit calculation. Product purchasing, processing, marketing, fixed costs and tax remain separate.
Test price presentation
Including delivery in product prices can behave differently for one or several products per order. Higher item prices can affect choice and may increase contribution or reduce demand. Do not claim unchanged margin or highest conversion without your own order mix and measurements.
Put it into practice
For a small set of shipments, keep the order number, customer charge, label cost and any later surcharge. Reconcile the list to the carrier invoice. Investigate differences caused by dimensions, weight or postcode before raising every rate. Update checkout and public shipping information together whenever charges change.
Frequently asked questions
Does a live rate cover everything? No. Must shipping be free? No; assess your offer and customer expectations. How do you test a threshold? Compare completed orders, basket value and contribution after delivery and return costs across comparable groups or periods, rather than conversion alone.
Start with your parcel mix
Take representative orders and calculate actual costs and customer contributions. Choose one test hypothesis and monitor complaints and returns too. Read the full costing guide and the returns guide for the related processes.
Sources and checks
Primary sources checked on 26 October 2026: ACM: mandatory sales information · ACM ConsuWijzer: withdrawal rights
