> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Handling Cost per Order: Average Handling Expense

> Track handling cost per order for your Shopify store. Measure the average handling and labor cost per order fulfilled.

<Tip>
  Handling Cost per Order measures the average labor and handling expense per order—picking, packing, and processing costs.
</Tip>

## Formula

<Info>
  **Handling Cost per Order** = **Total Handling Cost** ÷ **Orders**
</Info>

### Formula Components

| Metric                                                                         | Definition              |
| ------------------------------------------------------------------------------ | ----------------------- |
| [**Total Handling Cost**](/reference/metrics/orders/fulfillment/handling-cost) | Total handling expenses |
| [**Orders**](/reference/metrics/orders/counts/orders)                          | Count of orders         |

| Metadata        |                                         |
| --------------- | --------------------------------------- |
| **Type**        | Currency                                |
| **Data Source** | [Upstack Costs](/sources/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      |

***

## Related Metrics

| Metric                                                                                         | Relationship                |
| ---------------------------------------------------------------------------------------------- | --------------------------- |
| [Handling Cost](/reference/metrics/orders/fulfillment/handling-cost)                           | Total handling costs        |
| [Shipping Cost per Order](/reference/metrics/orders/fulfillment/shipping-cost-per-order)       | Carrier costs per order     |
| [Fulfillment Cost per Order](/reference/metrics/orders/fulfillment/fulfillment-cost-per-order) | Total fulfillment per order |

[See all Fulfillment metrics →](/reference/metrics/orders/fulfillment)