> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Shipping Cost %: Fulfillment Shipping as Share of Revenue

> Track Shipping Cost % to measure shipping expenses as a percentage of revenue — essential for profitability analysis and optimizing fulfillment economics.

<Tip>
  Shipping Cost % measures your shipping expenses as a share of net revenue, showing the fulfillment burden on your margins.
</Tip>

## Formula

<Info>
  **Shipping Cost %** = ( [**Shipping Cost**](/reference/metrics/orders/fulfillment/shipping-cost) ÷ [**Net Revenue**](/reference/metrics/orders/revenue/net-revenue) ) × 100
</Info>

### Formula Components

| Metric                                                                   | Definition                                         |
| ------------------------------------------------------------------------ | -------------------------------------------------- |
| [**Shipping Cost**](/reference/metrics/orders/fulfillment/shipping-cost) | Total shipping expenses from configured cost rules |
| [**Net Revenue**](/reference/metrics/orders/revenue/net-revenue)         | Revenue after discounts and refunds                |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Percentage                                                           |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/sources/upstack-costs) |
| **Aggregation** | Ratio                                                                |

***

## Example

Your store generated **\$125,000** in net revenue last month, with **\$6,250** in shipping costs.

| Period   | Shipping Cost | Net Revenue | Shipping Cost % |
| -------- | ------------- | ----------- | --------------- |
| January  | \$6,250       | \$125,000   | 5.0%            |
| February | \$7,150       | \$130,000   | 5.5%            |
| March    | \$5,600       | \$140,000   | 4.0%            |

***

## How It Works

Shipping Cost % divides your total shipping expenses by net revenue. Unlike Shipping %, which tracks shipping revenue collected from customers, this metric tracks your actual fulfillment cost burden. A lower percentage indicates better shipping economics or improved carrier negotiations.

***

## When to Use

| Scenario                     | Action                                         |
| ---------------------------- | ---------------------------------------------- |
| Contribution margin analysis | Track CM2 impact from fulfillment costs        |
| Carrier negotiation          | Benchmark trends before and after rate changes |
| Free shipping strategy       | Compare cost burden vs revenue impact          |
| Profitability optimization   | Identify when shipping costs erode margins     |

***

## Related Metrics

| Metric                                                                                   | Relationship                                     |
| ---------------------------------------------------------------------------------------- | ------------------------------------------------ |
| [Shipping Cost](/reference/metrics/orders/fulfillment/shipping-cost)                     | Numerator — total shipping expenses              |
| [Shipping Cost Per Order](/reference/metrics/orders/fulfillment/shipping-cost-per-order) | Per-order shipping expense                       |
| [Net Revenue](/reference/metrics/orders/revenue/net-revenue)                             | Denominator — revenue basis                      |
| [Shipping %](/reference/metrics/orders/adjustments/shipping-percent)                     | Shipping revenue as % of total (customer-facing) |

[See all Fulfillment metrics →](/reference/metrics/orders/fulfillment)