Divide the costs you include in fulfillment by the number of orders shipped in the same period. State the scope consistently: carrier charges, packaging, labour, storage and returns are different cost categories. Use your own invoices and time records; there is no universal healthy dollar amount or percentage for every business.
How is shipping cost per order calculated?
Divide the costs you include in fulfillment by the number of orders shipped in the same period. State the scope consistently: carrier charges, packaging, labour, storage and returns are different cost categories. Use your own invoices and time records; there is no universal healthy dollar amount or percentage for every business.
How tracking numbers help reconcile costs
Match carrier invoice lines to shipments, then shipments to orders. One order can have several parcels, and a return can have its own tracking number. Include the carrier and invoice reference when a tracking number alone is ambiguous. Allocate fuel, residential, address-correction and peak charges to the shipments that incurred them, rather than spreading them across unrelated orders. Reconcile the total against the complete invoice and avoid counting a surcharge twice when it is already included in a quoted rate.
What other costs should you include?
Include packaging receipts, packing time at your actual labour cost, purchased coverage and a documented share of storage or returns costs. Volumetric weight affects the carrier charge rather than creating a second independent expense. For example, a 20 × 15 × 10 cm box has a calculated volumetric weight of 0.6 kg at a 5,000 divisor or 0.5 kg at 6,000. Service rules, rounding and minimum charges determine the final bill; twice the weight does not necessarily mean twice the price.
How to monitor and reduce cost per order
Establish a baseline from a complete period. Compare similar products and destination mixes, set an alert threshold from your margins, and review unusual invoices. Test smaller packaging, available carrier services and fulfillment locations using your own orders. An illustrative 15% threshold is a business choice, not an industry definition of inefficiency.
Why the label price can be incomplete
A label quote does not necessarily include later measurement adjustments, packing labour or materials. Record what each figure includes, whether recoverable taxes are excluded and how returns are allocated. Keep the method consistent before comparing periods.
Cost visibility for Canadian small businesses
The platform compares the services available for a parcel, route and account. Connected stores can support order import and fulfillment updates, subject to the integration and permissions. Verify the fields in your exports before relying on them for a complete cost-per-order calculation; packaging, labour and external invoices may require separate records.
Frequently asked questions
What is shipping cost per order?
Your defined fulfillment costs divided by orders shipped in the same period. Document the included costs and use the same scope for comparisons.
Why is label price not the full cost?
Packing materials, labour, returns and later carrier adjustments can add costs. Measure them from your own records instead of applying an assumed percentage.
How often should I reconcile costs?
Reconcile each complete carrier invoice and review your totals regularly, using a cadence suited to your shipment volume.