To be able to use the 'Shipping markups' section make sure you enable real-time shipping calculation in the 'General settings' -> 'Shipping options' section.
The 'Shipping markups' section allows you to define markups for real-time calculated shipping methods. This can be useful when your shipping expenses exceed the value returned by the real-time shipping processor (e.g. you have to pay for packing, insurance, etc). The 'Shipping markups' section can be accessed by selecting Shipping markups in the Inventory menu.
If you define any markups, the shipping rates in your store will be calculated according to the formula:
SHIPPING = Rate + Markup + TOTAL_WEIGHT*Weight_Markup + ITEMS*Item_Markup + SUM*Percent_Markup/100
Where:
Rate is the shipping cost returned by the real-time calculation service (like UPS, FedEx, etc)
Markup is a fixed markup amount applied to the order (the value of the "Flat" field).
Weight_Markup is a shipping markup based on product weight (the value of the "Per lb" field).
Item_Markup is a shipping markup applied per item of the products ordered (the value of the "Per Item" field).
Percent_Markup is a shipping markup calculated as percent of the Total Amount Ordered (the value of the "%" field)
TOTAL_WEIGHT is the sum of weights of all the items in the shopping cart (variable). Product weight can be defined when you add a new product.
ITEMS is the total number of items in the shopping cart (variable).
SUM is the total order amount (variable).
If a markup should be applied only to a certain weight and/or order subtotal range, specify this range using the corresponding fields.
The markups defined here will be added to the value returned by the real-time shipping calculation service.
1. For packages that weigh 5.00-10.00 lbs, $1 per each pound will be added to the rate returned by the real-time calculation service.
2. For packages that weigh 10.00-20.00 lbs, a flat charge of $15 will be added to the rate returned by the real-time calculation service, plus $0.50 will be added per each item in the package.
Defining markups is similar to defining shipping charges.