How to Calculate Fulfillment Cost: Breaking Down Per-order Cost

Many sellers compute fulfillment cost by shipping only, then find it pricier than expected at month-end. A full breakdown tells the real story.

The formula

Per-order fulfillment cost = storage fee + handling fee (pick and label) + cross-border logistics + packaging + amortized return/exchange compensation.

Item by item

Storage: near zero within the free small-item period; handling: per piece or per SKU; logistics: by actual/volumetric weight; packaging: box, fill, tape; compensation: estimated from monthly average returns.

Dropshipping vs. self-run

Self-run adds rent, labor, mis-ship compensation and counting time. Dropshipping turns these into floating with orders - no idle staff in off-season. Youmanman bills by item, so per-order cost is clear.

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