Shipping Cost per Order: Average Carrier Cost

Shipping Cost per Order measures the average carrier cost per order—the postage and freight expenses to deliver orders to customers.

Formula

Shipping Cost per Order = Total Shipping Cost ÷ Orders

Metric	Definition
Total Shipping Cost	Total carrier shipping costs
Orders	Count of orders

Your Shopify store has $15,000 shipping costs across 1,000 orders.

Shipping Cost per Order can be calculated from actual carrier costs (ShipStation, ShipBob integrations) or configured as an average in Cost Settings.

Scenario	Action
CM2 calculation	Shipping reduces CM1 to CM2
Free shipping threshold	Set thresholds based on shipping costs
Carrier comparison	Compare costs across carriers
Pricing decisions	Factor shipping into product pricing

Metric	Relationship
Shipping Cost	Total shipping costs
Shipping Revenue	Revenue collected for shipping
Fulfillment Cost per Order	Total fulfillment per order
Handling Cost per Order	Picking/packing per order

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