

Look for several common components when calculating total fulfillment costs. These can include both statistical data and actual cost data. Below is a breakdown of what each component entails.
There are four different ways to calculate fulfillment costs. These fulfillment cost calculator equations provide a picture of how much it costs to fulfill orders:
When you handle your own in-house logistics, the total fulfillment cost per order will directly impact the profit ratio. Depending on costs, you may find greater savings by outsourcing the fulfillment processes to a 3PL provider.
With a 3PL provider, you pay an order fulfillment fee for services, such as receiving, storage, order processing and returns processing. These services are all-inclusive and static over the course of the contract.
Depending on your current fulfillment costs, a 3PL provider could save you money. But in order to weigh the savings, you must first know how much it currently costs to handle your own fulfillment process. Start by using the cost calculator above and then compare 3PL providers.
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