> ## 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.

# Shipping Cost per Order: Average Carrier Cost

> Track shipping cost per order for your Shopify store. Measure the average carrier shipping cost per order.

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

## Formula

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

### Formula Components

| Metric                                                                         | Definition                   |
| ------------------------------------------------------------------------------ | ---------------------------- |
| [**Total Shipping Cost**](/reference/metrics/orders/fulfillment/shipping-cost) | Total carrier shipping costs |
| [**Orders**](/reference/metrics/orders/counts/orders)                          | Count of orders              |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Currency                                                             |
| **Data Source** | [Upstack Costs](/sources/upstack-costs), [Shopify](/sources/shopify) |
| **Aggregation** | Average                                                              |

***

## Example

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

| Component                   | Value    | Calculation      |
| --------------------------- | -------- | ---------------- |
| Total Shipping Cost         | \$15,000 | Carrier costs    |
| Orders                      | 1,000    | Order count      |
| **Shipping Cost per Order** | **\$15** | \$15,000 ÷ 1,000 |

***

## How It Works

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

***

## When to Use

| 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   |

***

## Related Metrics

| Metric                                                                                         | Relationship                   |
| ---------------------------------------------------------------------------------------------- | ------------------------------ |
| [Shipping Cost](/reference/metrics/orders/fulfillment/shipping-cost)                           | Total shipping costs           |
| [Shipping Revenue](/reference/metrics/orders/adjustments/shipping-revenue)                     | Revenue collected for shipping |
| [Fulfillment Cost per Order](/reference/metrics/orders/fulfillment/fulfillment-cost-per-order) | Total fulfillment per order    |
| [Handling Cost per Order](/reference/metrics/orders/fulfillment/handling-cost-per-order)       | Picking/packing per order      |

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