Cost Per Order Calculator

How it is calculated

Enter, for one period such as a month, your total fulfillment cost, your total overhead and the number of orders shipped, with the money in dollars. The tool divides each cost by the order count and adds the two parts: cost per order = fulfillment ÷ orders + overhead ÷ orders, which is the same as (fulfillment + overhead) ÷ orders. You see the combined cost per order plus the fulfillment share and the overhead share separately, each rounded to cents. The order count must be above zero, otherwise there is no result. The tool does not know the cost of the goods sold, payment fees or marketing spend unless you include them in one of the two cost fields.

Common mistakes

• Using different periods for the costs and the orders, for example a full year of overhead with one month of orders. The result is then many times too high.
• Leaving shipping postage out of the fulfillment cost because customers pay it. If you pay the carrier first, that money is still a cost of the order unless you also net out what customers paid.
• Counting units instead of orders. An order with three items is still one order, so divide by shipped orders, not items.
• Including product purchase cost in overhead. This tool measures the cost of handling an order, not the cost of the goods sold, so mixing them hides the real fulfillment efficiency.
• Ignoring returns and cancelled orders. Decide whether they count as orders, and use the same rule every month so the trend can be compared.