Shipping cost should be calculated by chargeable weight, which can be actual weight or volumetric weight depending on courier rules.
Shipping & Freight Guide referenceDefinitions, decision points and weekly checkpoints.
18%CM2+37%DRRLowRisk
AmazonPractical Guide
What sellers should know.
This page is written for ecommerce teams that need clear decisions, not surface-level definitions.
Freight allocation matters for multi-unit shipments and B2B orders. A single flat shipping assumption can make bulky products look more profitable than they are.
RTO and failed delivery cost should be included for COD-heavy D2C brands. High RTO can make paid acquisition unprofitable even when gross margin looks healthy.
Apex reviews shipping by SKU, zone, weight slab and channel so pricing and free-shipping thresholds are based on real cost.
Action checklist
Use this as a quick review before changing budgets, inventory, pricing or channel strategy.
✓Measure actual and volumetric weight
✓Track zone-wise shipping
✓Include RTO in CM2
✓Set free-shipping threshold by margin
When to review
Review this weekly when revenue, ad spend, stock, returns or marketplace fees are changing.
Common mistake
The biggest mistake is reading this metric alone without checking contribution, inventory and customer behaviour.
Apex support
Apex connects this with catalog, ads, analytics, marketplace operations and profitability planning.
Next step
Use a related calculator, then speak with Apex for a practical growth audit.
Apply This
Turn This Into ActionNeed help applying this to your ecommerce business?
Apex can convert the guide into a SKU, platform, ads, inventory or profitability action plan.
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