Parcel Margin Analysis

Know Your Real Margin on Every Product You Ship

True product margin requires COGS and actual freight costs together. Parcel Margin Analysis connects COGS and freight at the SKU level so you can spot margin erosion, find unprofitable orders, and price with confidence.

Product Sale

+

SKU Cost

+

Freight Cost

=

Net Margin

PARCEL MARGIN ANALYSIS

Profit decision tools are just a few clicks away.

Product pricing is based on many factors: raw materials, labor costs, market value. But are you factoring in the impact of shipping? TransImpact’s Parcel Margin Analysis provides insights into your true profit margin on each product sold, factoring in gross margin, total shipping expenses, and revenue capture—such as flat rate shipping fees.

True Margin Analysis

See your true profitability for each order, customer, or SKU by combining and analyzing your costs of goods sold, revenue, and shipping costs. Easily determine if hidden shipping fees or rising costs are eroding your margins.

Precision Cost Attribution For Higher Profits

Accurately allocate shipping costs by order weight, dimensions, or your own business rules to ensure you’re pricing for profit and identifying the most cost-effective way to ship your products.

Segment Level Insights to Boost EBITDA

Spot customer and product trends that are losing you money and uncover hidden costs, surcharges, and fees. Use profit decision tools to make adjustments and corrections to turn those losses into profits. On average, customers increase gross margins 5-10% and boost EBITDA 1-2%.

Product Groups

SKUs

Customer

Charge Type

Individual invoice level

Allocate by your business rules...

It’s up to you how to allocate parcel costs, all customized to how your business operates, whether by customer, product, weight, dimensions, or your own business rules. In addition, customer segmentation models can be improved by identifying product and customer behavior trends that are usually hidden within complex data sets and disparate systems.

Gone are the days of manual spreadsheets. Empower your organization with AI-driven technology to improve your bottom line.

How You'll Win With Parcel Margin Analysis

With Parcel Margin Analysis, you’ll make smarter decisions, prevent margin erosion, and increase profitability—all while maintaining your pricing strategy.

Higher Profit

Make corrections by adjusting prices and costs to boost profits.

Smarter Decisions, Faster.

Use profit decision tools, dashboards, and reports for more robust planning.

Proven Margin Growth

Most see a 5-10% increase in gross margins and 1-2% EBITDA boost by optimizing.

Single Source of Truth

Make data-driven decisions with consolidated data, AI-powered insights.

Know Your Best Customers & Products

See behavior trends and what's making (or losing) money.

Stop Hidden Costs.

Catch fees before they eat into your profit margins.

Parcel Margin Analysis Q & A

What is Parcel Margin Analysis (PMA)?

Parcel Margin Analysis is a business analytics tool that provides critical sales and profitability analysis inclusive of actual parcel shipping costs. PMA answers a critical and difficult question for companies that use it: How much am I really making on my products inclusive of parcel shipping costs?

Why should I use PMA?

Companies are faced with difficult pricing decisions trying to recover costs for shipping. Do you include shipping for “Free” and absorb the cost? Do you charge a flat rate for shipping? Do you estimate and then charge your cost or with a slight mark up? There is no single right answer, but there can be many wrong ways. No matter how you decide to deal with shipping costs, they can erode margin, especially when underestimated. PMA provides the necessary insight to quickly assess the impact your shipping decisions are having on margin.

How does PMA work?

We work with your team to routinely access your sales and cost of goods and bring them into a data model to reveal your sales margin. Using your actual parcel shipping costs from our Parcel Spend Intelligence solution in combination with your sales data, PMA clearly exposes the impact parcel shipping costs are having on your margin. The analysis is delivered how you measure it, whether that’s by customer, individual product, sale, or SKU.

What data does PMA use?

Through various integration options, PMA can automatically gather sales order data, cost of goods, fees, and parcel transportation costs to provide profitability insights on your customer, the order, and the products fulfilled. Our team works with your IT team to optimize the connection to internal data, and we leverage our Parcel Spend Management platform to automatically gather actual parcel shipping costs directly from the parcel carrier’s billing center.