> ## 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.

# Total Fulfillment Cost: Combined Shipping and Handling Expenses

> Track Total Fulfillment Cost to measure combined shipping, handling, and fulfillment expenses — a key input for contribution margin analysis.

<Tip>
  Total Fulfillment Cost measures all expenses related to getting orders to customers—shipping, handling, and any additional user-defined fulfillment costs.
</Tip>

## Formula

<Info>
  **Total Fulfillment Cost** = [**Shipping Cost**](/reference/metrics/orders/fulfillment/shipping-cost) + [**Handling Cost**](/reference/metrics/orders/fulfillment/handling-cost) + [**Other Fulfillment Cost**](/reference/metrics/orders/fulfillment/other-fulfillment-cost)
</Info>

### Formula Components

| Metric                                                                                     | Definition                                                   |
| ------------------------------------------------------------------------------------------ | ------------------------------------------------------------ |
| [**Shipping Cost**](/reference/metrics/orders/fulfillment/shipping-cost)                   | Total shipping expenses from your cost configuration         |
| [**Handling Cost**](/reference/metrics/orders/fulfillment/handling-cost)                   | Order handling expenses including warehouse and picking fees |
| [**Other Fulfillment Cost**](/reference/metrics/orders/fulfillment/other-fulfillment-cost) | User-defined fulfillment costs from order cost entries       |

| Metadata        |                                                                      |
| --------------- | -------------------------------------------------------------------- |
| **Type**        | Currency                                                             |
| **Data Source** | [Shopify](/sources/shopify), [Upstack Costs](/sources/upstack-costs) |
| **Aggregation** | Sum                                                                  |

***

## Example

Your store processed **3,215 orders** in March with total fulfillment costs of **\$22,505**:

| Component         | Amount   | Share |
| ----------------- | -------- | ----- |
| Shipping Cost     | \$16,075 | 71%   |
| Handling Cost     | \$4,823  | 21%   |
| Other Fulfillment | \$1,607  | 8%    |

***

## How It Works

Total Fulfillment Cost aggregates all costs related to order fulfillment. Shipping and handling costs are calculated from your cost configuration rules. Other fulfillment costs come from user-defined entries with the Fulfillment category. This total is deducted from CM1 when calculating CM2 contribution margin.

***

## When to Use

| Scenario                     | Action                                                             |
| ---------------------------- | ------------------------------------------------------------------ |
| Contribution margin analysis | Deduct from CM1 to calculate CM2                                   |
| Fulfillment optimization     | Identify largest cost drivers across shipping, handling, and other |
| 3PL cost comparison          | Benchmark total fulfillment against third-party logistics quotes   |
| Profitability by channel     | Compare fulfillment burden across acquisition sources              |

***

## Related Metrics

| Metric                                                                                 | Relationship                                               |
| -------------------------------------------------------------------------------------- | ---------------------------------------------------------- |
| [Shipping Cost](/reference/metrics/orders/fulfillment/shipping-cost)                   | Carrier and delivery expenses included in this total       |
| [Handling Cost](/reference/metrics/orders/fulfillment/handling-cost)                   | Warehouse and order processing fees included in this total |
| [Other Fulfillment Cost](/reference/metrics/orders/fulfillment/other-fulfillment-cost) | User-defined fulfillment expenses included in this total   |
| [CM1](/reference/metrics/orders/contribution-margin/cm1)                               | Gross margin before fulfillment costs                      |
| [CM2](/reference/metrics/orders/contribution-margin/cm2)                               | Margin after deducting fulfillment costs                   |

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