Handling Cost measures total warehouse and packaging expenses incurred to prepare orders for shipment.
Handling Cost = SUM ( Handling Cost per Order )
| Metric | Definition |
|---|
| Handling Cost per Order | Individual handling fees applied per order from your cost configuration |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Sum |
Example
Your store fulfilled 3,240 orders in March with total handling expenses of $9,720, averaging $3.00 per order.
| Month | Orders | Handling Cost | Per Order |
|---|
| March | 3,240 | $9,720 | $3.00 |
| April | 2,980 | $9,536 | $3.20 |
How It Works
Handling Cost aggregates warehouse expenses from your cost configuration — global per-order handling fees plus per-product handling charges. These costs cover picking, packing, and materials. The metric is deducted from CM1 when calculating contribution margin at the CM2 level.
When to Use
| Scenario | Action |
|---|
| Contribution margin analysis | Deduct from CM1 to calculate CM2 |
| 3PL evaluation | Compare handling costs across fulfillment providers |
| Packaging optimization | Track cost impact of material changes |
| Volume efficiency | Monitor if scale reduces per-order handling |
| Metric | Relationship |
|---|
| Handling Cost Per Order | Average handling expense per order |
| Handling Cost % | Handling as percentage of net revenue |
| Shipping Cost | Partner fulfillment cost component |
| Total Fulfillment Cost | Combined shipping, handling, and fulfillment |
