Estimated Shipping Costs

Estimated Shipping Costs

MarginDriver provides same day gross profit results for every order even if the order has not yet been shipped. In such cases, MarginDriver uses estimated shipping costs until an actual shipping cost becomes available. MarginDriver will continuously search for an updated actual shipping cost for 60 days following the order date. After 60 days, the estimated shipping cost will be final and unable to be edited. 


Estimated shipping costs are displayed in orange. Once the estimated cost is replaced with the actual cost, the value will be displayed in black.


Calculation of Estimated Shipping Costs

MarginDriver attempts to provide the most accurate shipping estimates possible by referencing the the actual shipping cost of previous orders of the same SKU. MarginDriver only references previous orders of a single SKU with a product quantity of one (1) in order to eliminate other variables and arrive at the most accurate estimates. If an example of such an order (single SKU, product quantity of 1) is not available, MarginDriver will use the sales channel's average shipping cost for orders with the matching product quantity.


Single SKU, Product Quantity = 1

a. If a prior order with a product quantity of one can be found,

then MarginDriver uses the shipping cost from the last such order.

b. If a prior order with a product quantity of one cannot be found,

then MarginDriver uses the sales channel average for all orders with a product quantity of one (1) (the average drawn from the previous calendar month's orders).


Single SKU, Product Quantity > 1

a. If a prior order with a product quantity of one (1) can be found,

then MarginDriver will multiply the shipping cost from the last such order according the following schedule:


Product Quantity

Multiple

2

1.6

3

2.4

4

2.8

5

3.2

6

3.6

7

4.0

Add 0.4 for each additional unit



b. If a prior order with a product quantity of one cannot be found,

then MarginDriver uses the sales channel average for orders with the matching product quantity (average drawn from the previous calendar month's orders).


Multiple SKUs (by definition Product Quantity > 1)

a. If a sales channel average for orders with the matching product quantity can be found,

then MarginDriver uses that value (averages drawn from the previous calendar month's orders).

b. If a sales channel average for orders with the matching product quantity cannot be found,

then MarginDriver uses the sales channel average shipping cost for all orders on the channel regardless of product quantity or SKU (average drawn from the previous calendar month's orders).


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