Fulfillment Cost per Order: Total Fulfillment Expense

Fulfillment Cost per Order measures the total cost to fulfill each order—shipping, handling, packaging, and any other fulfillment expenses.

Formula

Fulfillment Cost per Order = Total Fulfillment Cost ÷ Orders

Metric	Definition
Total Fulfillment Cost	All fulfillment expenses
Orders	Count of orders

Your Shopify store has $27,000 fulfillment costs across 1,000 orders.

Fulfillment Cost per Order combines all costs to get an order from your warehouse to the customer. This is the key input for CM2 calculation.

Scenario	Action
CM2 calculation	Fulfillment reduces CM1 to CM2
Minimum order value	Set thresholds based on fulfillment cost
3PL evaluation	Compare fulfillment providers
Profitability analysis	Key component of unit economics

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