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What is Average Shipping Cost per Order?
The average cost of shipping an order to the customer.
How do we calculate Average Shipping Cost per Order?
Total Shipping Costs / Total Orders
What is the impact of Average Shipping Cost per Order?
Lower shipping costs contribute to higher profit margins and can be passed on to customers.
Industry benchmark for Average Shipping Cost per Order
In e-commerce, shipping costs typically amount to 10-15% of the total order value.
How to improve Average Shipping Cost per Order?
- Optimize packaging by choosing the right box selection.
- Improve cartonization and palletization process for Bulk and wholesale shipments to reduce shipping costs
- Negotiate better shipping rates with carriers
- Consolidate shipments and combine orders to reduce both shipping and packaging costs per order.
