> ## Documentation Index
> Fetch the complete documentation index at: https://docs.upstackdata.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Fulfillment Cost per Order: Total Fulfillment Expense

> Track fulfillment cost per order for your Shopify store. Measure total fulfillment cost including shipping and handling.

<Tip>
  Fulfillment Cost per Order measures the total cost to fulfill each order—shipping, handling, packaging, and any other fulfillment expenses.
</Tip>

## Formula

<Info>
  **Fulfillment Cost per Order** = **Total Fulfillment Cost** ÷ **Orders**
</Info>

### Formula Components

| Metric                                                                               | Definition               |
| ------------------------------------------------------------------------------------ | ------------------------ |
| [**Total Fulfillment Cost**](/reference/metrics/orders/fulfillment/fulfillment-cost) | All fulfillment expenses |
| [**Orders**](/reference/metrics/orders/counts/orders)                                | Count of orders          |

| Metadata        |                                         |
| --------------- | --------------------------------------- |
| **Type**        | Currency                                |
| **Data Source** | [Upstack Costs](/sources/upstack-costs) |
| **Aggregation** | Average                                 |

***

## Example

Your Shopify store has **\$27,000** fulfillment costs across **1,000** orders.

| Component             | Amount       | Per Order   |
| --------------------- | ------------ | ----------- |
| Shipping              | \$15,000     | \$15.00     |
| Handling              | \$12,000     | \$12.00     |
| **Total Fulfillment** | **\$27,000** | **\$27.00** |

***

## How It Works

Fulfillment Cost per Order combines all costs to get an order from your warehouse to the customer. This is the key input for CM2 calculation.

***

## When to Use

| Scenario               | Action                                   |
| ---------------------- | ---------------------------------------- |
| CM2 calculation        | Fulfillment reduces CM1 to CM2           |
| Minimum order value    | Set thresholds based on fulfillment cost |
| 3PL evaluation         | Compare fulfillment providers            |
| Profitability analysis | Key component of unit economics          |

***

## Related Metrics

| Metric                                                                                   | Relationship             |
| ---------------------------------------------------------------------------------------- | ------------------------ |
| [Fulfillment Cost](/reference/metrics/orders/fulfillment/fulfillment-cost)               | Total fulfillment costs  |
| [Shipping Cost per Order](/reference/metrics/orders/fulfillment/shipping-cost-per-order) | Carrier portion          |
| [Handling Cost per Order](/reference/metrics/orders/fulfillment/handling-cost-per-order) | Labor portion            |
| [CM2 per Order](/reference/metrics/orders/contribution-margin/cm2-per-order)             | Margin after fulfillment |

[See all Fulfillment metrics →](/reference/metrics/orders/fulfillment)