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Fulfillment (Handling) Costs

Account for packaging and labor with per-order and per-item handling rules: perOrderCost + (perUnitCost x totalUnits).

Written by Amar Sujith

Fulfillment costs cover the handling work that turns a paid order into a shipped one: packaging materials, labor, and processing time. Set rules based on how your handling actually scales, and Shopshot applies them to every order.

[Screenshot placeholder] The Fulfillment costs page showing a Standard Handling Fee (per order) and a Per Item Handling rule, each with an Active toggle

The formula

Every fulfillment rule follows one formula:

perOrderCost + (perUnitCost x totalUnits)

So a rule can charge a flat amount per order, an amount per item, or both together.

Example rules

Rule

Charges

Example

Standard Handling Fee

Per order

$10.00 per order

Per Item Handling

Per item

$2.00 per unit

Each rule can be toggled Active or off, and edited as your handling costs change. Active rules combine according to the formula, so a $10 per-order rule plus a $2 per-item rule on a 3-unit order is $16.

Where it shows up

Fulfillment appears as its own line in the Orders waterfall and rolls into Order-level Costs on the Profit & Loss statement. It also drives the Order Fulfillment Cost (average) metric in Business Metrics.

Common questions

Can I have both a per-order and a per-item cost? Yes. The formula adds them.

How do I stop a rule without deleting it? Toggle it off. It stays configured but no longer applies.

Should 3PL fees go here or in Operating Expenses? Per-order or per-item 3PL charges belong here so they attach to each order. Fixed monthly 3PL retainers belong in Operating Expenses.

Next step

Fulfillment is one of the four order-level costs. Complete the rest so your Gross Profit is whole. → Set up costs for a new store

Related

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