E-commerce
E-commerce margin: include shipping, fees, and returns in the plan
By You Me and Money · November 1, 2026 · Original practical guide
Begin with one order
Write down the selling price and every cost caused by a sale. Include product cost, packaging, delivery paid by you, transaction charges, and customer acquisition where relevant. Use the amount you actually expect to receive after discounts. Keep tax and import questions separate and confirm the applicable treatment with qualified sources.
Use an illustrative calculation
At a price of 40, suppose the product costs 12, delivery costs 6, packaging costs 1, and payment-related fees total 2. The contribution is 19 before advertising, returns, fixed costs, taxes, and your time. That is not net profit. If acquiring the order costs another 10, the remaining contribution becomes 9 under these assumptions.
Model returns as a scenario
Returned products can create additional delivery, handling, and lost-product costs. Rather than assuming no returns, compare a few rates and costs that fit your actual situation. Avoid counting recovered inventory twice. Track what really happens after launch and replace guesses with observations. A small initial sample will not establish a reliable long-term return rate.
Check supplier terms before committing
Confirm shipping regions, lead times, minimum orders, defects, stock changes, and the written returns process. A supplier directory can help you search, but it cannot guarantee that a particular product will meet your needs. Use our supplier checklist and compare delivered cost rather than selecting a supplier solely by unit price.