Shipping cost per country
One average shipping cost hides the countries where you lose money. Shipping depends on where the parcel goes and how it is sent, and so does VAT, so the same order leaves a different amount in each country.
How Klirry models shipping
You set a shipping cost per destination country, with one amount for letter and one for tracked. An order is priced from its destination and from the shipping method the customer chose. The cost is what shipping costs you, not what the customer paid for it.
An example
This is an illustrative example, not a real customer's numbers, and the shipping costs are made up for the example, not carrier prices. An order of EUR 100.00 including VAT, with a payment fee of EUR 2.00 and a product cost of EUR 30.00, sent to three countries.
| Destination | Shipping (EUR) | VAT taken out (EUR) | Contribution (EUR) |
|---|---|---|---|
| Sweden | 5.00 | 20.00 | 43.00 |
| Germany | 9.00 | 15.97 | 43.03 |
| France | 15.00 | 16.67 | 36.33 |
Sweden and Germany leave almost the same amount even though shipping to Germany is EUR 4.00 dearer, because the VAT taken out in Sweden is higher. France leaves EUR 6.70 less than Germany. You only see this when shipping and VAT are worked out per country, in the same step.
What to do
Enter your real shipping cost for the countries you sell to most, then read the contribution per country before you decide where to advertise. The break-even ROAS calculator has a shipping cost input, so you can try your own numbers. The step order is in the true profit article, the rules are on the methodology page, and pricing has the price.