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How do I calculate cost per order for my e-commerce business?

Asked 2 years ago

Hi there. The profit margin of my e-commerce store has hit a low, and thus I am looking for a way to calculate the CPO for my store so that I can find methods of reducing it. Anyone know of a formula to calculate CPO? TYIA.

Abeeha Qasmi

Wednesday, December 07, 2022

CPO refers to the collective cost an e-commerce requires to provide goods or services to buyers. As for its calculation, you will have to add your shipping, marketing, and fulfillment costs of a distinct span and divide it over the orders you received in that specific time. Mathematically it can be represented as:

CPO = Costs of shipment x Fulfillment and marketing / Number of orders in the specific time

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