Calculate your true cost per order — from picking and packing to last-mile delivery and returns.
Average number of orders shipped per month
Rent, utilities, storage fees (3PL or owned)
Staff cost for picking, packing, and shipping
Average carrier cost per shipment
Boxes, tape, void fill, branded inserts
To calculate fulfilment as % of revenue
Cost/Order = (Fixed Costs ÷ Orders) + Variable Cost Per OrderIn plain English
Cost per order = (warehouse + labour) / orders + shipping + packaging.
Worked Example
($3K + $4.5K) / 1,500 = $5/order fixed. + $7 shipping + $1.50 packaging = $13.50/order total.
For under ~500 orders/month, in-house fulfilment is usually cheaper. Above 500 orders/month, 3PLs typically offer better rates through carrier volume discounts. Most 3PLs charge per-order ($2–5 pick + $1–3 pack + shipping), with storage fees per cubic foot per month.
The 3PL break-even depends on your warehouse costs and labour efficiency. Model it: compare in-house (warehouse + labour + shipping rates) against 3PL quotes (per-order fee + storage + carrier rates).
| Order Volume | Typical Cost/Order | Fulfilment % Revenue | Recommendation | Status |
|---|---|---|---|---|
< 200/month | $12–20 | 15–25% | In-house or Shopify Fulfillment | |
200–1,000/month | $8–14 | 10–18% | In-house or small 3PL | |
1,000–5,000/month | $6–10 | 7–12% | Mid-size 3PL | |
5,000+/month | $4–8 | 5–9% | Enterprise 3PL / FBA |
Source: ShipBob 2025 Fulfillment Benchmark · Extensiv (3PL Central) State of 3PL
Not including storage costs in fulfillment cost per order
Storage is a real cost even if it's your own warehouse — opportunity cost of space, insurance, and utilities. Include it proportionally in your per-order fulfillment cost.
Setting free shipping thresholds below your fulfillment cost tipping point
If fulfilment costs $12/order, a free shipping threshold at $25 means you're subsidising shipping on most orders. Set thresholds at 3–4× your average fulfillment cost.
Comparing 3PL quotes without including carrier rates
3PLs often quote processing fees but understate shipping rates. Get an all-in cost per order (processing + shipping) for an accurate comparison to in-house rates.