The Complexities of Shipping & Handling Fees

S&H expenses for soft goods tend to range from 4 to 6 percent. With hard goods, the expense can be from 6 to 10 percent. As a result, it’s somewhat easier for marketers of soft goods to cover their expenses and then earn some extra contribution.

Barry takes a different view of the profit issue: “Cover a portion of the costs beyond the actual outbound freight. The fee is a marketing income, and the freight is an operations expense, so it shows up as a net income. But this is to cover all of the associated costs beyond the shipping.”