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Online Order Contribution Worked Example

Follow one hypothetical online order from discounted merchandise and shipping collected through fees, delivery and acquisition to contribution.

By PriceAndProfit Editorial Updated

The fee rate and fixed charge are invented for this worked order. Both apply to the stated $85 charge base, so the fee is $3.80. The $5 customer shipping charge is revenue in this illustration, while fulfillment costs are paid separately. Neither the shipping charge nor the processor payout should be mistaken for the complete order profit.

Order contribution = net order revenue − all specified variable order costs
Hypothetical worked values; no market or statutory rates
ComponentCalculationAmount
Merchandise after discount $90 less $10 $80.00
Shipping collected Customer charge $5.00
Order revenue $80 + $5 $85.00
Product cost Recorded cost $30.00
Fulfillment cost Packing, handling and delivery $12.00
Hypothetical fee 4% × $85 + $0.40 $3.80
Acquisition assigned Campaign allocation $15.00
Additional return loss Scenario reserve $2.00
Contribution $85 − $30 − $12 − $3.80 − $15 − $2 $22.20

How to read and reuse this example

The pre-acquisition contribution is $37.20. After assigning $15 of acquisition cost, $22.20 remains toward fixed overhead. The contribution ratio is $22.20/$85 = 26.12% after display rounding. A processor remittance would only explain the platform-side cash movement and could exclude product, delivery and marketing bills paid elsewhere.

Boundaries and exceptions

The $2 return reserve represents additional unrecovered loss beyond the net revenue already shown. Do not subtract the same refunded sale twice. Actual fees can use different bases, refund rules or settlement timing, so obtain your own terms. The example contains no sales-tax computation, and it does not claim that a positive order contribution makes the whole business profitable.

Method reference: Stripe: Pricing and Fees. Checked October 22, 2026. Official example of fee components; no published rate is embedded or recommended. Enter the applicable contract terms.

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