Total Fulfillment Cost measures all expenses related to getting orders to customers—shipping, handling, and any additional user-defined fulfillment costs.
| Metric | Definition |
|---|
| Shipping Cost | Total shipping expenses from your cost configuration |
| Handling Cost | Order handling expenses including warehouse and picking fees |
| Other Fulfillment Cost | User-defined fulfillment costs from order cost entries |
| Metadata | |
|---|
| Type | Currency |
| Data Source | Shopify, Upstack Costs |
| Aggregation | Sum |
Example
Your store processed 3,215 orders in March with total fulfillment costs of $22,505:
| Component | Amount | Share |
|---|
| Shipping Cost | $16,075 | 71% |
| Handling Cost | $4,823 | 21% |
| Other Fulfillment | $1,607 | 8% |
How It Works
Total Fulfillment Cost aggregates all costs related to order fulfillment. Shipping and handling costs are calculated from your cost configuration rules. Other fulfillment costs come from user-defined entries with the Fulfillment category. This total is deducted from CM1 when calculating CM2 contribution margin.
When to Use
| Scenario | Action |
|---|
| Contribution margin analysis | Deduct from CM1 to calculate CM2 |
| Fulfillment optimization | Identify largest cost drivers across shipping, handling, and other |
| 3PL cost comparison | Benchmark total fulfillment against third-party logistics quotes |
| Profitability by channel | Compare fulfillment burden across acquisition sources |
| Metric | Relationship |
|---|
| Shipping Cost | Carrier and delivery expenses included in this total |
| Handling Cost | Warehouse and order processing fees included in this total |
| Other Fulfillment Cost | User-defined fulfillment expenses included in this total |
| CM1 | Gross margin before fulfillment costs |
| CM2 | Margin after deducting fulfillment costs |
