Shipping supplies cost per order
Most sellers underestimate packaging cost by 30-50%. Here's how to actually price it in.
If you sell physical goods, your cost per order has at least three line items: the product itself, the postage label, and the supplies you wrap it in. Most sellers track the first two carefully and quietly let the third one wander.
This is a problem because supply cost compounds. A poly mailer costs about $0.10. A printed shipping label costs another sheet of paper at maybe $0.02. Tape, $0.05. Filler, $0.15 if you use anything. Add a thank-you card and you're at $0.40 to $0.50 per order before the postage even hits.
On a $25 t-shirt with 30% margins after platform fees, $0.50 is two percentage points of profit. Multiply across 1,000 orders a year and supplies are $500 you didn't budget for.
What "supplies" actually includes
The full list, in roughly the order most sellers add things:
- Outer packaging — poly mailer, padded mailer, or box
- Tape — for closing the box and for holding the label on if needed
- Label paper or thermal labels
- Filler — bubble wrap, packing peanuts, kraft paper, or void fill (only if your item rattles)
- Tissue paper or wrapping — optional, brand-experience play
- Thank-you card or insert — optional, but adds repeat-customer rate
- Sticker or seal — optional, brand finishing touch
Worked example: a t-shirt order
Let's price a single Bella+Canvas 3001 unisex tee shipped in a poly mailer:
- 9×12 poly mailer: ~$0.08 per bag (buying in 100-packs)
- Thermal label (4×6): ~$0.02 per label (1,000-pack roll)
- Tape: not needed for poly mailers (they're self-sealing)
- Tissue paper (one sheet, optional): ~$0.04
- Thank-you card: ~$0.10 (printed at home, 100 to a sheet, A4 cardstock)
Total: $0.24 per t-shirt order.
That's the floor — assuming you use thermal labels (no ink cost) and you skipped the sticker. Most sellers using inkjet labels and bubble mailers are closer to $0.50 per order on supplies alone.
Worked example: a ceramic mug
Mugs are different — they need actual protection. A typical setup:
- Small shipping box (8×6×4): ~$0.55 (in 50-packs)
- Thermal label: $0.02
- Bubble wrap (one wrap-around): ~$0.20
- Packing tape: ~$0.06 (one strip across the closure)
- Tissue paper: $0.04
- Thank-you card: $0.10
Total: $0.97 per mug order.
This is a much bigger deal proportionally. A mug retailing at $14.95 with $4.99 shipping has gross revenue of $19.94. After Etsy fees that's around $17.70 take-home. With $7.95 base cost (your manufacturing or POD cost) plus $0.97 supplies plus $4.69 first-item shipping, you're at $13.61 in costs — a $4.09 profit, or ~21% margin. If you forgot the supplies line, you'd think you were making $5.06 (25% margin). That's a real misread of the unit economics.
Worked example: small jewelry
Jewelry (earrings, rings, necklaces) often goes in smaller mailers with display cards:
- Padded bubble mailer (6×9): ~$0.22
- Jewelry display card: ~$0.05 (bulk packs)
- Small organza or velvet pouch: ~$0.08
- Thermal label: $0.02
- Thank-you card: $0.10
Total: $0.47 per jewelry order.
The display card alone often justifies itself in perceived value — a $12 pair of earrings on a branded card photographs better and feels more giftable. The cost is real but it's customer-experience spend, not just packaging.
The biggest leaks (and how to plug them)
Leak #1: Inkjet labels
Inkjet ink is staggeringly expensive — somewhere between $0.10 and $0.30 per shipping label depending on cartridge yield. A thermal label printer pays for itself within 100-200 orders if you ship enough volume. After that, every label costs you about $0.02 in paper and zero in ink.
Leak #2: Wrong-sized boxes
USPS and UPS both charge by dimensional weight on packages above certain sizes. A box that's 50% larger than it needs to be can push you into a higher rate band. Worse: it needs more void fill, which costs supplies AND adds weight.
The fix is keeping a range of box sizes on hand and matching the box to the product. A 10-box assortment costs maybe $20 but saves you from over-packing every order.
Leak #3: Not weighing before booking
If you guess at weight and book a label, you'll either pay too much (most common) or get hit with an adjustment fee from USPS later (also common). A $15 postal scale pays for itself in the first month.
Leak #4: Buying retail at the post office
USPS retail prices for boxes and supplies are 30-50% above what you can buy in bulk online. Priority Mail flat-rate boxes are free, but anything else — buy in bulk packs.
How to actually track this
Two approaches, both work:
Per-product: Calculate supply cost for each SKU once and bake it into your COGS. T-shirt = $0.24. Mug = $0.97. Necklace = $0.47. Use those numbers in your Etsy fee calculator or Printful calculator as part of "cost of goods" rather than zeroing it out.
Per-month: Add up everything you bought from the supply category in a month, divide by orders shipped that month. This is faster but less actionable — it tells you the average across all products, not where the problem is.
The per-product approach is what flags pricing problems. If you find that one SKU has $1.50 supply cost on a $9 sale, that's the SKU that's secretly losing money.
Tax note (US)
Shipping supplies are deductible business expenses on Schedule C, line 22 (Supplies). Track them — they reduce your taxable income at year-end. Keep receipts or use a receipt scanner to digitize as they come in.
Related calculators
Once you've got an accurate supply cost per SKU, plug it into:
- Etsy fee calculator — full Etsy fee picture including the new 0.32% Regulatory Operating Fee
- eBay fee calculator — Top Rated Seller and Below Standard tiers handled
- Mercari profit calculator — 10% selling fee plus 1099-K threshold tracking
- Printful profit calculator — base cost + shipping + platform fees combined
- Amazon FBA fee calculator — referral + fulfillment + storage + Selling Plan