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Can I set a profit margin on my shipping price?

Absolutely! To make a profit on your shipping price you can set the profit margin that you would like to earn on each order when using Gelato’s shipping profiles or Live rates with Gelato. This feature is currently available for Etsy and Shopify integration only.

The profit margin is set per store in Store > Settings > Shipping Configuration


How it works

This is how the shipping profit is calculated:
The price you charge your customer - cost to Gelato for shipping = shipping profit 

This is how the profit margin is calculated:
(Price to customer - cost to Gelato ) / cost to Gelato = shipping profit margin. 

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.





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.

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