Cost Per Order: Definition, Calculation & 8 Best Tips 2025
- Cost of Goods Sold (COGS): The direct cost of the product, including manufacturing and shipping from the supplier.
- Marketing Costs: Expenses from advertising campaigns, social media promotions, or influencer collaborations.
- Shipping and Fulfillment: Costs for packaging, shipping, and third-party logistics services.
- Transaction Fees: Payment processing fees, like those from Shopify Payments or PayPal.
- Automate Workflows: Use order processing software, barcode scanners, and automation tools.
- Standardize Operating Procedures: Define clear responsibilities, set priorities, and monitor performance.
- Optimize Picking and Packing: Utilize the right equipment and organize your packing area efficiently.
- Conduct Quality Checks: Verify order accuracy, quantity, and quality before shipping.
- Strategic Warehouse Layout: Place fast-moving items near packing stations and maximize space with vertical racks.
- Efficient Packaging: Use appropriately sized packaging and consider branded elements for a better unboxing experience.
- Accurate Shipping Labels: Choose clear fonts and barcodes, and select the most cost-effective shipping method.
- Reduced Shipping Costs: By minimizing delivery zones, you cut down on shipping expenses.
- Faster Delivery Times: Shorter distances mean quicker deliveries, enhancing customer satisfaction.
- Analyze Purchase Patterns: Identify popular products and stock them accordingly.
- Cost Savings: Pay only for the services you need, reducing overhead costs.
- Scalability: Easily scale operations during peak seasons without hiring additional staff.
- Bundle Products: Offer complementary products at a discounted rate.
- Personalized Recommendations: Use purchase history to suggest relevant items.
- Leverage Retargeting: Re-engage potential customers who abandoned carts.
- Focus on Customer Lifetime Value (LTV): Develop campaigns that encourage repeat purchases. Instead of relying on an ad to bring people just once, you need to create campaigns that encourage them to make more purchases or repeat purchases over time. Check out our article on how to increase customer lifetime value.
- Accurate Product Descriptions: Provide detailed product information to set customer expectations.
- Quality Control Checks: Ensure items are accurate and undamaged before shipping.
- Effective Return Policies: Make return policies clear and easy to understand, reducing confusion and potential disputes.
- Secure Packaging: Use durable packaging to protect products during transit.
Founder of TrueProfit & eCommerce Profitability Expert
Harry Chu is the Founder of TrueProfit, a net profit tracking solution designed to help Shopify merchants gain real-time insights into their actual profits. With 11+ years of experience in eCommerce and technology, his expertise in profit analytics, cost tracking, and data-driven decision-making has made him a trusted voice for thousands of Shopify merchants.
Harry Chu is the Founder of TrueProfit, a net profit tracking solution designed to help Shopify merchants gain real-time insights into their actual profits. With 11+ years of experience in eCommerce and technology, his expertise in profit analytics, cost tracking, and data-driven decision-making has made him a trusted voice for thousands of Shopify merchants.
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