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Fulfillment cost metrics track the expenses of getting orders to customers—handling, shipping, and other fulfillment operations.
Data Source: Shopify, Upstack Costs
Metrics: 15

Metrics in This Group

MetricDescriptionWhen to Use
Handling CostOrder handling expensesTrack warehouse costs
Handling Cost Per OrderHandling cost per orderPer-order analysis
Handling Cost %Handling as % of revenueCost proportion
Shipping CostShipping expensesTrack carrier costs
Shipping Cost Per OrderShipping cost per orderPer-order shipping
Shipping Cost %Shipping as % of revenueShipping burden
Other Fulfillment CostAdditional fulfillment expensesTrack misc expenses
Total Fulfillment CostAll fulfillment costs combinedTotal fulfillment burden
New Customer Shipping CostShipping for new customersSegment analysis
Returning Customer Shipping CostShipping for returning customersCompare segments
New Customer Handling CostHandling for new customersNew customer costs
Returning Customer Handling CostHandling for returning customersReturning costs
New Customer Other Fulfillment CostCustom fulfillment for new customersTrack custom fees
Returning Customer Other Fulfillment CostCustom fulfillment for returningCompare segments
New Customer Fulfillment CostAll fulfillment costs for new customersNC profitability

How These Metrics Relate

Fulfillment costs impact contribution margin at the CM2 level:
  • Total Fulfillment Cost = Handling Cost + Shipping Cost + Other Fulfillment Cost
  • CM2 = CM1 − Fulfillment Costs (contribution margin after fulfillment)
  • Compare Shipping Revenue vs Shipping Cost to find shipping margin

Choosing the Right Metric

  • Fulfillment optimization: Use Total Fulfillment Cost to track total burden
  • Shipping margin: Compare Shipping Cost vs Shipping Revenue collected
  • Per-order economics: Use Per Order metrics for unit economics
  • Customer profitability: Compare New vs Returning fulfillment costs