This article explains how Gelato+ Gold members can set a profit margin on shipping prices for their Etsy and Shopify stores.
Setting Up Shipping Profit Margins
Gelato+ Gold members can set a profit margin on shipping costs for their Etsy and Shopify stores. This means you can define additional shipping fees for your customers on top of the base shipping prices from Gelato.
To set your profit margin, go to Store > Settings > Shipping Configuration.
How Shipping Profit Margins Work
Shipping profit is calculated as follows:
Shipping profit = The price you charge your customer for shipping - The shipping cost payable to Gelato
The shipping profit margin is calculated as follows:
Shipping profit margin = (Price to customer - cost to Gelato) / cost to Gelato.
For example, let's say you offer flat-rate shipping to your customers in the EU for a shipping fee of 45 EUR, which is the default set by Gelato. Once you set a 50% markup, your customer will see a shipping fee of 67.50 EUR, and you will make a profit of 22.50 EUR.
Frequently Asked Questions
How can I use this function?
You must have a Gelato+ Gold subscription. Then, you can edit the shipping profit margin settings in your store settings.
Which e-commerce platforms can I set the shipping margin for?
Currently, you can set shipping margins for your Etsy and Shopify stores.
Can I set a shipping profit margin with Live rates?
Yes, you can set the shipping profit margin with Live rates.
Do I have to change shipping profiles if I set the shipping margin?
No, you don’t have to make any changes to shipping profiles. Gelato automatically updates the rates in your shipping profiles based on the markup you set in the Gelato dashboard.
How do I remove the shipping profit?
Set the shipping profit margin to 0% in the store settings. This will charge the customer the same price for shipping that you pay to Gelato.
How much time does it take before my customers see changes in my store?
It typically takes 3-5 minutes to update the shipping prices.
Can I offer Free shipping?
Yes, you can offer free shipping. If you activate free shipping, it automatically disables the profit margin set.
Can I set different shipping profit margins per store?
Yes, the shipping profit margin is set per store.
I used to have shipping profit margins set before it became a Gelato+ Gold feature. What happens now?
Your shipping margin profit settings will be retained. However, you will not be able to make any additional changes.