Running an eCommerce business isn’t just about selling products—it’s about understanding the full cost behind every order. From fulfilment and storage fees to shipping and returns, getting a clear picture of your expenses is crucial for pricing your products effectively and maintaining profitability.
So, how do you calculate your total cost per order? Let’s break it down step by step.
Step 1: Determine Your Order Volume
Start by estimating how many orders you receive per month. This helps in calculating the per-order cost for fulfilment services, as most 3PL pricing UK models are based on volume. The higher your order volume, the more cost-effective your fulfilment costs may become. Some providers offer discounted rates as your business scales, so having an accurate forecast can help you plan better.
Step 2: Factor in the Number of Items Per Order
Not every order is equal. Some customers purchase multiple items, while others might only buy one. Understanding your average items per order helps in accurately estimating fulfilment fees, as these often depend on the number of items being picked, packed, and shipped.
Step 3: Calculate Your Storage Costs
Your storage fees will depend on how much space your inventory takes up. This is measured in cubic metres (CBM). If you’re storing a large number of bulky products, your storage costs will be higher. By estimating your CBM usage, you can better understand your total storage expenditure. If you sell on Amazon, you may also want to compare your costs using an Amazon storage cost calculator to determine whether using a 3PL calculator is a more cost-effective solution.
Step 4: Consider Return Rates
Returns are an unavoidable part of eCommerce. If your business has a high return rate, you’ll need to factor in the costs of processing returned orders. This includes inspection, restocking, and potential repackaging fees. The complexity of your return process can also impact costs—for instance, if your products require extensive quality control checks before being resold.
Step 5: Assess Your Goods-In Costs
When stock arrives at your 3PL provider, there are usually inbound handling charges. These depend on the type of goods you receive—whether they arrive in cartons, pallets, or containers. Larger shipments, such as 20ft or 40ft containers, may have different pricing structures. By estimating your monthly goods-in quantity and type, you can account for these additional costs and plan your inventory intake accordingly.
Step 6: Work Out the Total Cost Per Order
Once you have all these figures, you can calculate the total cost per order by summing up:
– Fulfilment fees (picking & packing per order)
– Storage costs (based on CBM usage)
– Returns processing costs
– Inbound goods handling fees
– Shipping costs (varies by carrier and destination)
Doing all this manually can be time-consuming. Or, you can simply use PackPro’s 3PL Pricing Calculator to get instant answers!
PackPro’s 3PL Pricing Calculator Makes It Easy
If you’re looking for 3PL pricing in the UK, PackPro’s pricing calculator allows you to quickly estimate costs. Instead of spending hours manually crunching numbers, simply enter the following key details:
– Estimated orders per month – Helps you determine the per-order fulfilment cost based on your volume.
-Estimated number of items sold per month – Some orders contain multiple products, so understanding this metric ensures accurate pricing.
– Estimated CBM usage per month – Storage costs are based on the space your inventory takes up, and CBM helps in estimating these charges.
– Average monthly returned orders – Factoring in returns ensures that unexpected expenses don’t eat into your profits.
– Goods-in type and quantity – Whether your stock arrives in cartons, pallets, or full containers (20ft or 40ft), this affects your inbound handling costs.
Once you’ve filled in these details, you’ll receive an instant breakdown of your total cost per order. This 3PL calculator is designed to remove the guesswork from fulfilment pricing, making it easier to plan your business costs and make informed decisions.
Want to Work Out Other eCommerce Costs?
If you’re looking beyond fulfilment costs and want to analyse all expenses related to your eCommerce business—including FBA fees, hidden marketplace costs, and profit margins—Seller Margins provides an all in one solution.
Seller Margins offers deep insights into your true profitability by breaking down every cost associated with your business, from marketplace fees to shipping expenses. Whether you’re in need of an Amazon FBA calculator, or you’re looking to optimise your financial strategy, Seller Margins gives you the data you need to make informed decisions and maximise profits.
Try PackPro with a 30-Day Free Trial
If you’re searching for a reliable 3PL fulfilment partner, PackPro is currently offering a 30-day free trial for new customers! This trial includes:
✔ No setup fees
✔ No management fees
✔ No storage fees
✔ No picking fees
✔ A dedicated account manager
✔ Free integration platform
If you decide not to continue after the trial, you only need to cover your shipping costs—no hidden fees, no long-term commitment.
Ready to simplify your fulfilment? Get started with PackPro today!