Fulfillment Cost per Order measures the total cost to fulfill each order—shipping, handling, packaging, and any other fulfillment expenses.
Fulfillment Cost per Order = Total Fulfillment Cost ÷ Orders
| Metric | Definition |
|---|
| Total Fulfillment Cost | All fulfillment expenses |
| Orders | Count of orders |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Upstack Costs |
| Aggregation | Average |
Example
Your Shopify store has $27,000 fulfillment costs across 1,000 orders.
| Component | Amount | Per Order |
|---|
| Shipping | $15,000 | $15.00 |
| Handling | $12,000 | $12.00 |
| Total Fulfillment | $27,000 | $27.00 |
How It Works
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.
When to Use
| 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 |
| Metric | Relationship |
|---|
| Fulfillment Cost | Total fulfillment costs |
| Shipping Cost per Order | Carrier portion |
| Handling Cost per Order | Labor portion |
| CM2 per Order | Margin after fulfillment |
