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Shipping Analytics: Benchmarks and Insights for E-Commerce Sellers

By Hili Jeffery

Updated August 7, 2023.

BeProfit Shipping Analysis

Shipping costs can have a significant impact on an online merchant's profits. In this post, we take a closer look at the cost of shipping across different industries, providing insights into the average shipping cost per order, shipping costs out of total revenue, and customer charge rates. We also analyze the most popular shipping platforms used by online merchants and average delivery times in the U.S.

The Impact of Shipping Costs on Your Revenue

At BeProfit, we believe in identifying what's eating your profits in each area of your business and optimizing accordingly. With our powerful Shipping Analysis tool, you can gain insight into shipping operations, carrier performance, and shipping methods to optimize your shipping strategy and increase your gross margin.

» Learn how to maximize your profits by improving your shipping strategy—Book a demo

Shipping Benchmarks and Key Insights

Knowing and understanding the importance of key shipping benchmarks and insights can help you optimize your profits regardless of industry.

The Cost of Shipping in E-Commerce

Shipping costs can make or break an online merchant's profits. Let's take a closer look at the average shipping costs, shipping costs out of total revenue, and customer charge rates across different industries.

Home and beauty products have the lowest average shipping cost per order at $6.03, while electronics have the highest at $10.60.

shipping cost per order

However, in terms of shipping costs out of total revenue, clothing and fashion top the list at 12.73%, while electronics have the lowest percentage at 3.18%.

shipping cost out of total revenue

The customer charge rate for the electronics industry stands at an elevated 118.95%, implying that they impose a higher shipping cost on their customers than what they incur. In contrast, the home & beauty industry has a customer charge rate of merely 65.10%, indicating a negative profit margin for shipping.

AVG customer charge rate

These numbers highlight the importance of understanding shipping costs in relation to your industry and business model. While it may be tempting to charge your customers more for shipping, it's essential to find a balance between affordability for your customers and profitability for your business. By analyzing the data for your industry, you can make informed decisions about your shipping strategy and optimize your profits.

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Which Shipping Platforms Do Online Merchants Prefer?

Choosing the right shipping platform can be a game-changer for online merchants. Let's delve into the shipping platforms used by merchants using BeProfit.

Shopify Shipping is the clear leader, with a whopping 85.81% of merchants opting for this platform. ShipStation comes in second with 5.38%, followed by Shippo at 3.1% and ShipBob at 1.63%. Other platforms, including Shiphero, Easyship, Shipping Easy, Shipmondo, Shiphawk, and Shipwire, are each used by less than 1% of merchants.

Average Delivery Time

According to PrettyDamnQuick, a provider of checkout-to-delivery management platforms for e-commerce businesses, the average click-to-door time for U.S. brands is 4.87 days, including non-business days. This metric represents the time it takes for an e-commerce order to be delivered to the customer's doorstep from the moment the order is placed. By revealing this data, e-commerce businesses can use it as a benchmark to measure their shipping efficiency and identify areas for improvement in their processes.

ave click to door

Shipping is the final touch to a perfect customer experience that will make or break your customer loyalty and retention. These three shipping factors are a trifecta: 1. Win customers in your local geography first - offer local customers personalized shipping options such as 'same-day or next-day delivery.' 2. Use a multi-carrier platform - customers desire a variety of shipping options, such as 'Free,' 'Express,' and 'Overnight,' to give them control and flexibility over when they'll receive their order. 3. Show a precise delivery promise in checkout - Include specific 'Arrives By' dates on each shipping option so customers know when they will receive their orders." - Avi Moskowitz, CEO at Pretty Damn Quick
Avi Moskowitz CEO at PDQ

BeProfit: Profit Analysis Dashboard

4.8/5(320 reviews)

Streamline Your Shipping Performance with BeProfit's Shipping Analysis Tool

Shipping analytics

Efficient shipping is a crucial aspect of any online business. With BeProfit's Shipping Analysis tool, merchants can now track and analyze their shipping performance with ease.

Our powerful tool allows merchants to gain insight into their shipping operations, identifying areas for improvement and tracking new customers. By analyzing their shipping data, merchants can optimize their shipping strategy, save time and money, and increase customer satisfaction.

The Shipping Analysis provides an intuitive interface that displays essential shipping metrics, such as shipping costs, carrier performance, and shipping methods. Merchants can compare shipping data across different carriers and methods, helping them make informed decisions about their shipping strategy.

» Make the most of your shipping operations by booking a demo with BeProfit

Bring Your Company Up to Its Full Potential

Our analysis of shipping operations for online merchants has yielded some important benchmarks and insights. These include:

  • Shipping costs vary by industry, with electronics having the highest average shipping cost per order at $10.60 and home and beauty products having the lowest at $6.03.
  • When looking at shipping costs as a percentage of total revenue, clothing and fashion have the highest rate at 12.73%, while electronics have the lowest at 3.18%.
  • Some industries, such as the electronics industry, charge their customers more for shipping than they incur, with a customer charge rate of 118.95%. In contrast, the home and beauty industry has a negative profit margin for shipping, with a customer charge rate of 65.10%.
  • The most popular shipping platform among online merchants is Shopify Shipping, with 85.81% of merchants opting for this platform.
  • Delivery times vary by carrier and method, with the benchmark being 4.87 days in the U.S.
  • BeProfit's Shipping Analysis tool can help merchants streamline their shipping performance by providing essential metrics and insights, such as shipping costs, carrier performance, and shipping methods.

With powerful insights and intuitive metrics, our platform can help you streamline your shipping performance and take your business to the next level.

BeProfit: Profit Analysis Dashboard

4.8/5(320 reviews)