Citable benchmarks
Average ecommerce conversion rate is often ~2–3% (varies widely by industry and traffic mix).
Source: IRP Commerce — Ecommerce Market Data (Jan 2026)
Average ecommerce cart abandonment rate is 70.19%.
Source: Baymard Institute — Cart Abandonment Rate Statistics (2024)
Key takeaways
- Free Shipping Cost Profitability Analyzer — Does Shipping Eat Your Margin? — focus on one metric or lever at a time; validate with data before scaling spend.
- Pair reading with free Growthegy calculators (LTV, ROAS, break-even, pricing) to turn ideas into numbers.
- Bookmark growthegy.com/tools/ and run the Business Strategy Quiz when you need a prioritised roadmap.
What does this shipping profitability analyzer do?
It shows gross margin per order (from AOV and gross margin %) and compares it to your shipping cost per order. If shipping is higher than gross margin, you lose money on shipping. It also shows shipping as a percentage of AOV so you can set free-shipping thresholds.
Enter your AOV, shipping cost per order, and gross margin % below.
Gross margin per order$37.50
Net margin after shipping$31.50
Shipping as % of AOV8.0%
Shipping is profitable at these numbers.
Next steps
Use our AOV Optimizer to model free-shipping thresholds and Gross Margin Calculator to improve margin so shipping stays profitable.
FAQ
What does this shipping profitability tool do?
It compares your gross margin per order to your shipping cost per order. If shipping cost is higher than gross margin, you lose money on shipping. It also shows shipping as % of AOV.
Should I offer free shipping?
It depends on margin and AOV. Use this tool to see if your margin covers shipping. Many brands use a free-shipping threshold (e.g. free over $75) to protect margin while boosting AOV.
Is this shipping profitability analyzer free?
Yes. Free with no signup. For AOV optimization see AOV Optimizer; for margin see Gross Margin Calculator.