> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sourcemedium.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Shipping Costs

> How shipping costs entered in the Configuration Sheet flow into profitability and gross profit reporting

Shipping costs represent the cost you pay to deliver orders to customers. Adding shipping costs enables accurate gross profit and contribution margin calculations.

## How Shipping Costs Work

Shipping costs can be entered as:

* **Flat rate per order**: Same cost for every order
* **Percentage of shipping revenue**: e.g., 80% of what customer paid
* **Per-order values**: Custom cost per order via upload

## Where Shipping Costs Appear

| Module            | Usage                       |
| ----------------- | --------------------------- |
| Executive Summary | Gross profit calculation    |
| Orders Deep Dive  | Order-level profitability   |
| LTV & Retention   | Profit-adjusted LTV metrics |

## Setting Up Shipping Costs

<Steps>
  <Step title="Access Configuration Sheet">
    Open your Configuration Sheet from SourceMedium settings
  </Step>

  <Step title="Navigate to Shipping tab">
    Find the shipping costs section
  </Step>

  <Step title="Enter your method">
    Choose flat rate, percentage, or upload order-level costs
  </Step>
</Steps>

## Common Approaches

| Approach             | Best For                    | Example                       |
| -------------------- | --------------------------- | ----------------------------- |
| **Flat rate**        | Simple, consistent shipping | \$5.00 per order              |
| **Percentage**       | Variable shipping costs     | 75% of shipping charged       |
| **Per-order upload** | Complex/negotiated rates    | CSV with order-specific costs |

<Tip>
  If you use multiple carriers with different rates, consider using the average cost across all orders. You can refine later with per-order data.
</Tip>

## Related Resources

<CardGroup cols={2}>
  <Card title="Set up shipping costs" icon="truck" href="/data-inputs/configuration-sheet/costs/how-do-i-surface-shipping-costs-within-my-dashboard">
    Step-by-step setup guide
  </Card>

  <Card title="Fulfillment costs" icon="warehouse" href="/help-center/raw-data-source-overviews/configuration-sheet/costs/fulfillment-costs">
    Track 3PL and fulfillment fees
  </Card>
</CardGroup>