Handling Cost % measures what percentage of your net revenue is consumed by order handling expenses.
| Metric | Definition |
|---|
| Handling Cost | Total warehouse and order processing expenses |
| Net Revenue | Revenue after refunds and discounts |
| Metadata | |
|---|
| Type | Percentage |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Ratio |
Example
Your store generated $185,000 in net revenue in March with $9,250 in handling costs, resulting in a 5.0% handling cost percentage.
| Month | Net Revenue | Handling Cost | Handling Cost % |
|---|
| March | $185,000 | $9,250 | 5.0% |
| April | $192,000 | $8,640 | 4.5% |
How It Works
Handling Cost % divides your total handling expenses by net revenue. This gives you a normalized view of handling burden that can be tracked month-over-month regardless of revenue fluctuations. Lower percentages indicate more efficient fulfillment operations.
When to Use
| Scenario | Action |
|---|
| Margin analysis | Monitor handling burden on contribution margin |
| Efficiency benchmarking | Compare against industry standards (typically 3-8%) |
| Seasonal planning | Track how fulfillment scales during peak periods |
| 3PL evaluation | Compare handling costs across fulfillment providers |
| Metric | Relationship |
|---|
| Handling Cost | Absolute handling expense (numerator) |
| Handling Cost Per Order | Per-order handling expense |
| Shipping Cost % | Shipping as percentage of revenue |
