> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vortexiq.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Avg Shipping Cost, NetDispatch

> Avg Shipping Cost for NetDispatch stores. Tracked live in Vortex IQ Nerve Centre. How to read it, why it matters, and how to act on it.

**Metrics type:** [Key Metrics](/nerve-centre/overview#metrics-types-explained)  •  **Category:** [Shipping & Courier](/nerve-centre/connectors#connectors-by-type)

## At a glance

> Average postage cost per Net Dispatch-routed parcel in GBP, post-discount and including standard surcharges. Reflects UK multi-carrier rate-shopping outcome: Net Dispatch's pooled rates plus per-shipment optimisation across Royal Mail, DPD, Evri, Yodel, ParcelForce. Typically 5 to 12% lower than direct-to-carrier UK average for similar volume.

|                              |                                                                                                                                                                                          |
| ---------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **What it counts**           | `SUM(label cost in GBP) / COUNT(shipments)` over the trailing 30 days.                                                                                                                   |
| **Cost components included** | Carrier base rate + fuel surcharge + carrier-specific accessorials (residential, remote-area, oversize) + Net Dispatch per-label fee.                                                    |
| **Discount handling**        | Net Dispatch negotiates pooled rates with UK carriers; merchants typically pay 5-12% less than direct-to-carrier published rates.                                                        |
| **Service level scope**      | All Net Dispatch-booked services pooled.                                                                                                                                                 |
| **Carrier-mix effect**       | Strongest cost driver. Heavy Evri/Yodel use lowers the average dramatically (£1.50-£2.50/parcel) but hurts on-time. Heavy DPD use raises average (£3.50-£5.00/parcel) but lifts on-time. |
| **Annual rate increase**     | Most UK carriers raise rates once-yearly, typically January-February (3-7% per cycle). Some (Royal Mail) have additional mid-year adjustments.                                           |
| **Q4 surcharges**            | UK carriers add Q4 peak surcharges October-January (£0.20-£1.50/parcel for high-volume); the card includes them.                                                                         |
| **Currency**                 | GBP for UK domestic. International shipments may convert at booking-time FX.                                                                                                             |
| **Time window**              | `30D vsP`                                                                                                                                                                                |
| **Alert trigger**            | `+10% vsP`                                                                                                                                                                               |
| **Roles**                    | owner, finance, operations                                                                                                                                                               |

## Calculation

Calculated automatically from your NetDispatch data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.

## Worked example

A UK DTC fashion merchant via Net Dispatch. Reading taken at 09:00 GMT on 12 Mar 26 for the trailing 30 days vs the prior 30 days.

| Underlying Carrier               | Shipments  | Avg billed (Net Dispatch GBP) | Equivalent direct estimate |
| -------------------------------- | ---------- | ----------------------------- | -------------------------- |
| Royal Mail Tracked 48            | 5,820      | £3.10                         | £3.40 (-9%)                |
| Royal Mail Tracked 24            | 2,180      | £4.20                         | £4.65 (-10%)               |
| DPD Next Day                     | 1,420      | £4.40                         | £4.90 (-10%)               |
| Evri 3-5 Day                     | 3,940      | £1.95                         | £2.20 (-11%)               |
| Yodel Standard                   | 880        | £2.40                         | £2.75 (-13%)               |
| FedEx UK Express (international) | 220        | £14.80                        | £16.20 (-9%)               |
| **All carriers (this card)**     | **14,460** | **£3.05**                     | **£3.40 (-10.3%)**         |

The card reads **£3.05 (30D)** vs **£2.92 (prior 30D)**, +4.5% increase. Alert at +10% has not tripped. Five things to notice:

1. **Net Dispatch is saving the merchant \~£0.35/parcel vs direct.** At 14,460 monthly shipments, \~£5,060/month or £61K/year saving. This is the platform's value proposition.
2. **Evri at £1.95/parcel is the cheapest option but drags on-time.** The cost-vs-OTD trade is most acute on Evri/Yodel; merchants weighing the trade should look at this card alongside [On-Time Delivery Rate](/nerve-centre/kpi-cards/net-dispatch/on-time-delivery-rate).
3. **The +4.5% climb is mostly January 2026 carrier rate increases.** Royal Mail published a 6.4% increase effective 1 Apr 26 (will affect April readings); DPD applied a 5.1% increase in January. Non-negotiable.
4. **No major service-mix shift.** Volume mix between carriers is similar to prior 30D; cost climb is rate-driven not mix-driven.
5. **Compare against on-time card.** Cost climb of 4.5% paired with on-time stable at 94.0% = "I'm paying 4-5% more for the same service quality". Acceptable; the trade flips negative if on-time degrades while cost climbs.

## Sibling cards merchants should reference together

| Card                                                                                                | Why pair it with Avg Shipping Cost | What the combination tells you                            |
| --------------------------------------------------------------------------------------------------- | ---------------------------------- | --------------------------------------------------------- |
| [On-Time Delivery Rate](/nerve-centre/kpi-cards/net-dispatch/on-time-delivery-rate)                 | Quality-cost trade.                | Net Dispatch value prop is "save without losing on-time". |
| [Cost Per Shipment Trend](/nerve-centre/kpi-cards/net-dispatch/cost-per-shipment-trend)             | 90D shape.                         | Upward = structural; spike = one-time.                    |
| [Cost by Zone](/nerve-centre/kpi-cards/net-dispatch/cost-by-zone)                                   | UK regional split.                 | Highland/island surcharges drive region-level cost.       |
| [Shipments by Service](/nerve-centre/kpi-cards/net-dispatch/shipments-by-service)                   | Carrier mix split.                 | Shifting Evri to Royal Mail raises average.               |
| Cross-connector: [`royal_mail.rm_avg_shipping_cost`](/nerve-centre/royal_mail/rm_avg_shipping_cost) | Direct-RM subset comparison.       | Net Dispatch-RM should beat direct-RM.                    |
| Cross-connector: [`shopify.total_revenue`](/nerve-centre/kpi-cards/shopify/total-revenue)           | Margin denominator.                | UK shipping cost as % of revenue.                         |

## Reconciling against the vendor's own dashboard

**Where to look in Net Dispatch's own dashboard:**

[Net Dispatch Dashboard](https://www.netdispatch.com/) → **Billing → Statements**. Monthly invoice shows total spend in GBP and shipment count.

**Why our number may legitimately differ from Net Dispatch's portal:**

| Reason                | Direction          | Why                                                                                             |
| --------------------- | ------------------ | ----------------------------------------------------------------------------------------------- |
| **Charge components** | Either             | Card includes Net Dispatch per-label fee; portal sometimes shows base postage only.             |
| **Refund handling**   | Card may be higher | Refunds (cancelled labels) post on next billing cycle.                                          |
| **VAT inclusion**     | Either             | UK VAT (20%) treatment differs between merchant configurations; reconcile gross-vs-net display. |

**Cross-connector reconciliation:**

| Card                                                                               | Expected relationship | What causes legitimate divergence               |
| ---------------------------------------------------------------------------------- | --------------------- | ----------------------------------------------- |
| [`royal_mail.rm_avg_shipping_cost`](/nerve-centre/royal_mail/rm_avg_shipping_cost) | Direct-RM subset.     | Net Dispatch-RM should beat direct-RM by 8-12%. |
| [`dpd.dpd_avg_shipping_cost`](/nerve-centre/kpi-cards/dpd/avg-shipping-cost)       | Same for DPD.         | Same.                                           |

## Known limitations / merchant FAQs

**Net Dispatch saving vs direct-to-carrier UK?**
Typical 5-12% saving on rate-shopped volume. Driven by Net Dispatch's pooled rates with Royal Mail, DPD, Evri, Yodel. Trade-off: large enterprise UK shippers (£3M+/year) may negotiate stronger direct contracts.

**My cost climbed 10%, alert tripped. What happened?**
Three diagnostic steps. (1) [Cost Per Shipment Trend](/nerve-centre/kpi-cards/net-dispatch/cost-per-shipment-trend) for shape. (2) [Shipments by Service](/nerve-centre/kpi-cards/net-dispatch/shipments-by-service) for carrier-mix. (3) [Cost by Zone](/nerve-centre/kpi-cards/net-dispatch/cost-by-zone) for regional shifts (Highland/Islands surcharges).

**Highlands and Islands surcharges?**
Most UK carriers add £3-£12/parcel surcharge to deliveries to Scottish Highlands & Islands, Northern Ireland (some), Channel Islands, Isle of Man. Net Dispatch passes the surcharge through; your average climbs if customer-mix shifts toward those regions.

**Should I configure Net Dispatch to use cheapest-only rate-shopping?**
For UK DTC under £2M/year shipping, usually yes ("cheapest meeting promise"). Trade-off: cheapest often selects Evri/Yodel which have weaker on-time. Configure rate-rules to prefer reliability for high-AOV orders.

**Q4 cost spike?**
UK carriers add Q4 peak surcharges October-January; expect 5-12% climb above steady-state. Combined with January rate increases at year-end, plan budgets for +10-+18% combined cost November-February.

**VAT treatment?**
UK merchant accounts typically receive ex-VAT pricing on shipping (VAT-recoverable for VAT-registered businesses). Card displays whichever the connector receives in API responses. Verify config via Net Dispatch CSM if your reconciliation looks off.

**Brexit cost change for UK→EU?**
Pre-Brexit, UK→EU was domestic-equivalent pricing. Post-Brexit, UK→EU shipments are international with customs declarations and (often) DDP duty handling. Cost climbed 30-60% on EU lanes; merchants who set up EU-domiciled subsidiaries (Netherlands) shipping from there avoid the international leg.

**Why is OnTrac/Lasership not in my UK Net Dispatch?**
OnTrac, Lasership, LSO are US regional carriers. UK regional carriers integrated into Net Dispatch typically include: Evri, Yodel, ParcelForce, DX, Tuffnells (for larger items). Net Dispatch's UK carrier portfolio differs from EasyPost's US portfolio.

***

### Tracked live in Vortex IQ Nerve Centre

*Avg Shipping Cost* is one of hundreds of KPI pulses Vortex IQ tracks across NetDispatch and 70+ other ecommerce connectors. Nerve Centre runs the detection layer; Vortex Mind investigates the cause when something moves; Ask Viq lets you interrogate any number in plain English.

[Start for free](https://app.vortexiq.ai/login) or [book a demo](https://www.vortexiq.ai/contact-us) to see this metric running on your own data.
