Cost per Unit Shipped

Cost per unit shipped normalizes logistics spend when order sizes change, so you can tell real efficiency from bigger baskets. If cost per order rises but cost per unit falls, customers are buying more per order, and the warehouse is not getting worse. It also helps compare channels, such as single-unit DTC orders and multi-unit wholesale ones. For example, $42,000 of fulfillment fees, $6,000 of packaging, and $96,000 of postage across 30,000 units is $4.80 per unit.

Cost per unit shipped = (fulfillment fees + packaging + postage) ÷ units shipped

Open the Cost per unit shipped calculator on its own page

Should I track cost per order or cost per unit shipped?

Track both. Cost per order matches how most 3PLs and carriers bill, while cost per unit makes it easier to compare periods or channels with different units per order.

How do you calculate cost per unit shipped?

Add fulfillment fees, packaging, and postage for the period, then divide by units shipped. $144,000 over 30,000 units is $4.80 per unit.

Why does cost per unit fall when units per order rise?

Many costs, such as the base pick fee, box, label, and much of postage, are charged once per order. Adding units to the same box spreads those costs over more units.

• Cost per OrderCPOTotal cost to fulfill and ship one order
• Units per OrderUPOAverage items in each order
• Fulfillment Cost as Percent of RevenueShare of revenue spent on fulfillment