Apparel Cost per Order

A line-item invoice separates every charge instead of hiding them inside one bundled fee. That is what lets you calculate a true landed cost per order, spot unprofitable SKUs, and test whether a free shipping threshold actually pays for itself. OC3PL bills this way, weekly.

Some lines are direct, meaning each order carries its own charge. Others are shared, meaning you spread a monthly total across the orders that caused it. Be consistent about the method so the number is comparable month to month.

Rates vary by brand, so this example uses line names and quantities rather than prices. Swap in the rates from your own quote.

Say a streetwear brand ships 2,000 orders in a month. The average order has two units. Most orders ship in a branded poly mailer with one sticker and one card.

1. Pick and pack: 2,000 per-order fees, plus 4,000 per-item fees.
2. Materials: 2,000 mailers, 2,000 stickers and 2,000 cards, unless you supply them yourself.
3. Shipping: the sum of 2,000 labels, which depends on package size, weight and zone.
4. Storage: the month’s storage line, spread across 2,000 orders.
5. Receiving: the month’s receiving line, spread across 4,000 units sold.
6. Returns: the month’s returns line, spread across 2,000 orders, or attached to the styles that came back.

Add the lines and divide by 2,000. That is your average fulfillment cost per order. Now repeat the exercise for one-unit orders and for four-unit orders. The difference between them is what tells you where a free shipping threshold or a bundle should sit.

• Units per order: more units raise pick cost per order but lower shipping and packaging cost per unit. See multi-item apparel orders.
• Package size: carriers charge by size as well as weight. See apparel shipping costs and dimensional weight.
• Return rate by style: one badly sized style can raise the average for the whole catalog. See what apparel returns really cost.
• Slow stock: inventory that sits still carries storage every day. See dead stock in apparel.
• Inbound condition: labeled cartons with an ASN are received faster than loose, unlabeled goods.
• Packout touches: tissue, stickers and custom folds each add labor.

The point of building the number is to act on it. Pick the one line that moved most since last quarter and ask why.

Weekly invoicing means you see costs as they happen rather than a month later. Weekly reporting from your account manager covers service levels, shipping costs and inventory status. And because pricing is quoted line by line with no setup fees and no minimums, you can see exactly which line changed when the total does.

If a number does not make sense, call your account manager. They work on site in Anaheim and can tell you what happened on the floor. We are here. We got you.