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Fulfilment unit economics calculator

Contribution per order after goods, pick and pack, shipping, payment fees and returns.

Goods cost
$24.00
Fulfilment cost
$10.00
Payment fee
$1.50
Expected return cost
$0.80
Total cost per order
$36.30
Contribution per order
$23.70
Contribution margin
39.5%
Break-even order value
$35.69

Methodology

Goods cost per order = cost of goods per unit × average units per order. Fulfilment cost per order = pick and pack + packaging + outbound shipping + storage allocation. Payment fee = average order value × payment fee rate. Expected return cost = return rate × return handling cost, charged across every order as a probability-weighted expectation rather than only to orders that come back. Contribution per order = average order value − goods cost − fulfilment cost − payment fee − expected return cost. Break-even order value is the order value at which contribution reaches zero, holding every cost constant. Returns are treated as a handling cost only: lost margin on unsellable returns, refund of shipping, and restocking write-downs are not modelled. Also excluded: customer acquisition cost, overheads, duties on cross-border orders, and any tax treatment. You supply every input: this site holds no live freight rates, transit times, or duty tables, and never estimates them for you. Results are an orientation model, not a quotation, and not customs, tax, insurance, or financial advice. Confirm duty rates, VAT treatment, and carrier terms with the relevant authority or provider before relying on them.

These calculations are informational estimates based on headline rates and transparent assumptions — not tax, accounting, or legal advice. Verify with a qualified local advisor before relying on the results.

Data limitations

  • Logistics figures are operator-supplied inputs, not market data. GeoBusinessIQ holds no freight rates, transit times, capacity, or throughput data and does not estimate them — every result reflects only the figures you enter.

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