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Free Shipping vs Paid Shipping Calculator

Determine if offering "Free Shipping" by building freight into item price yields higher net margin.

Calculator Inputs

Calculation Results

Live updating metrics

Live Computed
Primary Output Metric
Profit / Margin Impact
Informational Disclaimer: This calculation provides an estimate for informational purposes. Actual marketplace fees, GST liabilities, and courier charges depend on seller tier, category, fulfillment mode, and current platform policies.

How This Calculation Works

Free shipping increases conversion rate, but marketplace commission applies to the total price including built-in shipping.

Formula
Free Shipping Margin = (Price With Shipping Built-in - Costs) vs Paid Shipping Margin = (Base Price + Shipping Fee - Costs)

💡 Realistic Indian E-Commerce Example

Selling at ₹500 with free shipping incurs ₹60 commission (12% of ₹500). Selling at ₹430 + ₹70 shipping incurs ₹51.60 commission on base price if platform excludes shipping from fee base.

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Frequently Asked Questions

Common queries about this calculation methodology

Yes, Amazon Referral Fee applies to the item price + shipping fee combined.

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