Handling Cost per Order measures the average labor and handling expense per order—picking, packing, and processing costs.
Handling Cost per Order = Total Handling Cost ÷ Orders
| Metric | Definition |
|---|
| Total Handling Cost | Total handling expenses |
| Orders | Count of orders |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Upstack Costs |
| Aggregation | Average |
Example
Your Shopify store has $12,000 handling costs across 1,000 orders.
| Component | Value | Calculation |
|---|
| Total Handling Cost | $12,000 | Picking and packing |
| Orders | 1,000 | Order count |
| Handling Cost per Order | $12 | $12,000 ÷ 1,000 |
How It Works
Handling Cost per Order is configured in Cost Settings. You can set a fixed cost per order or a variable cost based on order complexity (units, weight, etc.).
When to Use
| Scenario | Action |
|---|
| CM2 calculation | Handling reduces CM1 to CM2 |
| Fulfillment efficiency | Track cost per order over time |
| 3PL comparison | Compare handling costs across providers |
| Pricing decisions | Include handling in unit economics |
| Metric | Relationship |
|---|
| Handling Cost | Total handling costs |
| Shipping Cost per Order | Carrier costs per order |
| Fulfillment Cost per Order | Total fulfillment per order |
