Shipping Gap
The difference between what you charge for shipping and what the carrier actually charges you. Most merchants discover they're subsidizing shipping out of their product margin — a negative gap that silently bleeds profit.
Example
You charge customers $5 for shipping. UPS charges you $8. That -$3 gap comes straight out of your pocket. At 200 orders/month, you're losing $600 you didn't account for.
Why It Matters
Most merchants set their shipping rates once and never check them again. Meanwhile, carrier rates increase annually. A negative shipping gap of even $2 per order on 300 monthly orders is $7,200/year in silent losses — enough to wipe out a month's profit for a small store.
Pro Tip
Export your last 100 shipped orders and compare what you charged for shipping versus what the carrier actually billed. If the average gap is more than $0.50, adjust your shipping rates or switch carriers.
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