Total the storage, picking and shipping cost per order.
Fulfillment economics combines fixed storage amortized per order with the variable costs of picking, packing and shipping each box. Third-party and in-house fulfillment both look cheap until the full per-order cost is totaled, which is the number to compare against competitors.
Fulfillment Cost per Order
Fulfillment cost = storage allocation + picking + packing + shipping
Fulfillment cost = storage allocation + picking + packing + shipping Fulfillment economics combines fixed storage amortized per order with the variable costs of picking, packing and shipping each box.
Third-party and in-house fulfillment both look cheap until the full per-order cost is totaled, which is the number to compare against competitors.
This calculator takes 5 inputs: Picking and packing per order, Monthly storage cost, Orders per month, Shipping cost per order, Packaging per order. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.