Payment and shipping fees | Profit Bidding Guide | GROW
Profit Bidding – The Complete Guide

Section 2 · Cost tracking

Payment and shipping fees

Lesson 6 of 26 · 1 min read

Payment fees

Ask your finance team what the terms are for your payment processing. Stripe, for example, charges around 1.5% + 20p per transaction for standard UK cards, and more for international cards.

Example

Order value£60.00
Percentage fee (1.5% of £60.00)£0.90
Fixed fee£0.20
Payment fee on this order£1.10

Shipping fees

You might set a default shipping rate for each sale, but you may have to subsidise this. Are you accounting for it?

Simply add up all of the courier charges you paid for every order, then check what shipping revenue you collected. If the courier fees were higher, the difference is the subsidy. To calculate it per order, take the extra charge you paid and divide it by the number of orders. That’s your subsidy fee.

You can add this to your costs and spread it out over every order. In time, you could get more granular and work out the subsidy per product.

Example

Courier charges paid last month£5,200
Shipping revenue collected£3,000
Extra you paid£2,200
Orders1,000
Shipping subsidy per order£2.20