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Can I set a profit margin on my shipping price?

Absolutely! If you are a Gelato+ Gold member, you can define additional shipping fees for your customer in your store on top of base shipping prices from Gelato. This feature is currently available for Etsy and Shopify stores only.

You can set the profit margin for each store in Store > Settings > Shipping Configuration

How it works

Profit on shipping is calculated:
Shipping profit = The price you charge your customer for shipping - The shipping cost payable to Gelato

Shipping profit margin is calculated:
Shipping profit margin = (Price to customer - cost to Gelato ) / cost to Gelato. 

Let’s say you are offering flat rate shipping to your customers in the EU for a shipping fee of 45 EUR which is by default set by Gelato. Once you set a 50% markup, your customer will see a shipping fee of 67.50 EUR and you will make a profit of 22.50 EUR.

 

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FAQs

Q: How can I use this function?
A: First, you must have a Gelato+ Gold subscription. Then you can edit the shipping profit margin settings in your store settings.

Q: Which e-commerce platforms can I set the shipping margin for?
A: Currently, you can set shipping margins for your Etsy and Shopify stores.

Q: Can I set a shipping profit margin with Live rates?
A: Yes, you can set the shipping profit margin with Live rates too.

Q: Do I have to change shipping profiles if I set the shipping margin?
A: No, you don’t have to make any change in shipping profiles. Gelato automatically updates the rates in your shipping profiles based on the markup you set in the Gelato dashboard.

Q: How do I remove the shipping profit?
A: You do that by setting the shipping profit margin to 0% in the store settings. Then you will charge the customer the same price for shipping that you pay to Gelato.

Q: How much time does it take before my customers see changes in my store?
A: It takes normally 3-5 minutes to update the shipping prices.

Q: Can I offer Free shipping?
A: Yes, you can offer free shipping. If you activate free shipping then it automatically disables the profit margin set.

Q: Can I set different shipping profit margins per store?
A: Yes, the shipping profit margin is set per store.

Q: I used to have shipping profit margins set before it became a Gelato+ Gold feature? What happens now?
A: Your shipping margin profit settings will be retained, however, you will not be able to make any additional changes.

 

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