Foundation · 2 min
What you need to know
What is ecommerce cost per order?
Ecommerce cost per order is the average operating cost assigned to each completed order under a stated inclusion and allocation policy.
How is cost per order calculated?
Add the included costs for a period and divide by the defined order count, then segment by channel, market or order type when mix differs.
Which costs should be included in cost per order?
Include relevant payment, platform, app, labor, fulfillment, service, returns, infrastructure and allocated overhead, clearly distinguishing product and acquisition cost.
How does order volume affect cost per order?
Fixed cost per order can fall as volume rises until capacity steps, complexity, overtime or service failures add new cost.
Why is cost per order increasing?
It may rise because of lower volume, mix shift, new tools, manual exceptions, shipping or return changes, staffing, poor automation or allocation changes.
How can automation reduce cost per order?
Automation reduces cost when it removes net effort and errors after subscription, monitoring, maintenance and exception cost are included.
A quick store check
Decompose cost per order by cost category, channel and order type and explain the largest month-over-month movement.
Foundation · 2 min
Frequently asked questions
Can cost per order compare unlike businesses directly?
Only after aligning included costs, order definitions and operating mix.
Should cancelled orders disappear from cost analysis?
No. Their processing cost may still matter even when excluded from the completed-order denominator.