Cost per Order

The core unit-economics metric for logistics. Track with and without postage to see where savings come from.

Cost per order = (fulfillment labor or 3PL fees + packaging + postage + storage allocation) ÷ orders shipped

What is included in fulfillment cost per order?

Typically pick and pack fees or labor, packaging materials, outbound postage, and a share of storage and receiving costs. Some brands also include returns processing; state which costs you include so comparisons are fair.

• Landed CostThe total cost of getting a product to your warehouse ready to sell: purchase price plus freight, insurance, duties, tariffs, brokerage, and handling.
• Third-Party LogisticsA company that stores a brand's inventory and picks, packs, and ships its orders under contract, usually charging per order, per pick, and per unit of storage.
• Dimensional WeightA billable weight that carriers calculate from package volume. The carrier charges whichever is greater, actual weight or dimensional weight.