Fulfillment Cost Analysis
Shipping Cost Analysis
01 — Executive Summary
$11,434 in Tracked Shipping Costs
UPS Group B Accounts
$5,304
46.4% of total cost
USPS
$3,617
31.6% of total cost
Combined Top 2 Carriers
78%
$8,922 of $11,434
Fulfillment Share
94.3%
$10,129 of $10,743 carrier fees
Top 2 Stores Share
76%
Health Brand + Fashion Brand
High Concentration: UPS and USPS together account for over 78% of total tracked shipping costs. The top two stores (Health Brand Store and Fashion Brand Store) drive approximately 76% of all carrier fees. This creates both dependency risk and clear leverage points for cost optimization.
02 — Carrier Cost Breakdown
UPS Dominates at 46% of Total
Cost Distribution by Carrier
Total tracked: $11,434.40
Carrier Fee Composition
Fulfillment vs POD (Print on Demand)
| Carrier | Total Cost | % of Total | Notes |
|---|---|---|---|
| UPS Group B ACCOUNTS | $5,304.40 | 46.39% | Largest single carrier expense |
| USPS | $3,617.23 | 31.63% | Second highest expense |
| Other Carriers | $2,512.77 | 21.98% | Remaining carrier costs |
| TOTAL | $11,434.40 | 100% | UPS + USPS = 78% |
03 — Fulfillment Type Analysis
Fulfillment = 94.3% of Carrier Fees
Fulfillment vs POD Costs
Total carrier fees: $10,742.87
Cost Composition
Carrier-fee breakdown
| Fulfillment Type | Carrier Fee | % of Total |
|---|---|---|
| FULFILLMENT | $10,128.56 | 94.28% |
| POD (Print on Demand) | $614.31 | 5.72% |
| TOTAL CARRIER FEE | $10,742.87 | 100% |
Insight: Standard fulfillment operations are the main source of billing charges. POD costs are minor at only 5.72% — suggesting the business is primarily a standard fulfillment operation rather than a print-on-demand model.
04 — Store-Level Concentration
Two Stores Drive 76% of Costs
Top Stores by Carrier Fee
Health Brand Store + Fashion Brand Store = 76%
Health Brand Store
$4,244
Highest total carrier fee
Fashion Brand Store
$3,939
Second leading store
Combined Top 2
$8,183
76% of all carrier fees
Optimization Opportunity: Negotiating better rates with UPS/USPS for Health Brand Store and Fashion Brand Store would address the majority of shipping costs. A small improvement in these two stores' rates would yield disproportionate savings across the entire fulfillment operation.
05 — Key Takeaways
Three Core Findings
1. Carrier Concentration: UPS (Group B accounts) alone is 46.39% of total shipping cost. Combined with USPS (31.63%), two carriers account for 78% of spend. Negotiate volume discounts or explore multi-carrier routing to reduce dependency.
2. Fulfillment Dominance: Standard fulfillment operations drive 94.28% of carrier fees. POD is a minor cost center (5.72%). Any fulfillment efficiency gains will have outsized impact on total shipping costs.
3. Store Concentration: Health Brand Store ($4,244) and Fashion Brand Store ($3,939) represent 76% of total carrier fees. A small number of high-volume stores drive the majority of costs — target these for rate negotiation and operational efficiency review.