Courier cost calculator
The cheapest courier is not always the one that earns you the most. Compare three couriers by cost per delivered order and profit per shipment, with returns included.
Example numbers. Replace them with yours.
- Most profit per shipment
- Courier C
- Cheapest per shipment
- Courier B
- Monthly gap, best vs cheapest
- USD 4,210
- Courier A: cost per delivered order
- USD 11.58
- Courier A: profit per shipment
- USD 19.02
- Courier B: cost per delivered order
- USD 11.63
- Courier B: profit per shipment
- USD 16.88
- Courier C: cost per delivered order
- USD 10.96
- Courier C: profit per shipment
- USD 21.09
What it calculates
A courier's price per shipment is only part of its cost. Every parcel it fails to deliver comes back with a return fee and no sale. A courier with a lower fee and a lower delivery rate can leave you with less money than a dearer one that delivers more. This calculator ranks couriers by profit per shipment and shows the cheapest one for comparison.
How to read the result
If the best and the cheapest courier differ, the monthly gap is what choosing by price costs you. Delivery rates differ by city and product. Compare couriers on the same routes and the same period.
Learn the metric:RTO (return to origin)COD reconciliation
The formula
Cost per shipment = Fee + (1 − delivery rate) × return fee Cost per delivered order = Cost per shipment ÷ delivery rate Profit per shipment = Delivery rate × (order value − COGS) − cost per shipment Monthly gap = (Best − cheapest profit per shipment) × shipments
Worked example
Example inputs
- Order value
- USD 60
- Product cost
- USD 22
- Shipments per month
- 1,000
- Courier A: fee per shipment
- USD 7.50
- Courier A: return fee
- USD 3
- Courier A: delivery rate
- 72%
- Courier B: fee per shipment
- USD 6
- Courier B: return fee
- USD 4
- Courier B: delivery rate
- 64%
- Courier C: fee per shipment
- USD 8
- Courier C: return fee
- USD 2.50
- Courier C: delivery rate
- 78%
Results
- Most profit per shipment
- Courier C
- Cheapest per shipment
- Courier B
- Monthly gap, best vs cheapest
- USD 4,210
- Courier A: cost per delivered order
- USD 11.58
- Courier A: profit per shipment
- USD 19.02
- Courier B: cost per delivered order
- USD 11.63
- Courier B: profit per shipment
- USD 16.88
- Courier C: cost per delivered order
- USD 10.96
- Courier C: profit per shipment
- USD 21.09
What changes the result
Courier B: delivery rate at five values. Every other input stays as in the worked example; the highlighted row is the example.
| Courier B: delivery rate | Most profit per shipment | Monthly gap, best vs cheapest |
|---|---|---|
| 57.6% | Courier C | USD 6,898 |
| 64% | Courier C | USD 4,210 |
| 70.4% | Courier C | USD 1,522 |
| 76.8% | Courier B | USD 0 |
| 83.2% | Courier B | USD 0 |
Use your real numbers
Analify reads fees, delivery rates and returns per courier from connected couriers and shows them side by side for the same period.
Analify already reads 12 of these 12 inputs live, from Shopify · Courier
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Questions
How do I compare shipping companies?
Compare cost per delivered order and profit per shipment, not the price per parcel. Both include what failed deliveries cost you.
Why does delivery rate matter more than the fee?
Each failed delivery loses the whole sale and adds a return fee. A few points of delivery rate are often worth more than a cheaper fee.
Does this include the product cost of returns?
No. It assumes returned items can be resold. If many come back damaged, use the COD profit calculator's unsellable share.
Do you store what I enter?
No. The calculation runs in your browser and nothing is sent to Analify.
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