Overview

Ship.com has warned that shipping expenses are set to climb sharply in 2026, threatening the profit margins of Amazon and other marketplace sellers. By treating shipping fees as a component of Cost of Goods Sold (COGS) during inventory analysis, merchants can see the true profitability of each SKU instead of merely tracking revenue. Sellers who ignore these hidden costs risk eroding margins and may be forced to cut inventory or raise prices.

Key Points

• Average carrier rate myth — Ship.com disputes the industry claim that carriers raise base rates by only 5.9% annually; the real cost driver is a stack of surcharges that can triple the effective increase.
• Residential surcharge range — Most carriers now add $4‑$6 per package for deliveries to homes, a fee that quickly adds up for high‑volume sellers.
• Handling fees impact — Additional handling charges can cost $15‑$30 per box, turning a $10 product into a loss‑making order.
• Dimensional weight charges — Packages that are light but bulky are billed on volume, often exceeding the actual weight cost and squeezing margins further.
• Peak‑season spikes — Holiday surcharges and fuel fees can boost shipping costs by 10%‑20% over baseline rates, demanding proactive pricing buffers.
• Profit‑per‑order focus — Ship.com urges sellers to calculate every dollar spent on a sale—including packaging, labor, and post‑shipment adjustments—to gauge true profitability.

How Treating Shipping as COGS Works

1. Collect full cost data — Record product cost, packaging material, carrier base rate, and every surcharge (residential, fuel, handling, address correction, etc.) for each order. Example: A $12 t‑shirt shipped in a poly‑bag incurs $2 product cost, $0.30 packaging, $3.50 carrier base, $5 residential surcharge, and $0.70 fuel fee, totaling $11.50.
2. Allocate labor and time — Add the hourly wage of staff members who pick, pack, and label the order, prorated to the minutes spent. Example: A picker earning $18/hour spends 4 minutes on the t‑shirt, adding $1.20 to the order cost.