Fulfilment Cost Calculator
The cost to fulfil an order — pick, pack, materials and shipping — and where in-house crosses over against a third party.
Fulfilment cost per order is labour (pick and pack time × rate) plus materials plus shipping.
How the fulfilment cost calculator works
Fulfilment cost per order is labour (pick and pack time × rate) plus materials plus shipping. In-house has a fixed warehouse cost spread over volume; a 3PL charges per order with no fixed base.
That is the crossover: below some volume the 3PL is cheaper because you are not paying for empty warehouse; above it, in-house wins because the fixed cost is spread thin. This computes where the line sits.
Formula: in-house = fixed/orders + labour + materials + shipping
Worked examples
| Inputs | In-house cost per order | Note |
|---|---|---|
| 3,000 orders a month | 14.967 | below the crossover — the 3PL is cheaper here |
| Low volume | 26.967 | the fixed cost dominates |
| Slower picking | 17.8 | labour erodes the advantage |
FAQFrequently asked questions
What does it cost to fulfil an order?
Typically 3 to 6 in labour and materials before shipping, depending on pick complexity and wage rates.
When should I use a 3PL?
Below the crossover volume, and whenever you would rather not run a warehouse. This page computes the crossover from your own numbers.
Why does volume decide it?
Because in-house carries a fixed warehouse cost. At low volume that fixed cost per order is enormous; at high volume it disappears.
What else favours a 3PL?
Seasonality, multi-region shipping and not tying up capital. Fixed warehouse cost is painful in a business with a quiet half-year.
What does a 3PL not cover?
Usually the shipping itself, which is billed separately, plus receiving, storage and returns handling. Compare on total cost, not the pick fee.
Where these figures come from
- APICS / ASCM — inventory management terminology — the turnover, safety stock and reorder point definitions used here
- Australian Competition and Consumer Commission — the Australian consumer law regulator
Last checked: September 2026. These are standard retail and inventory-management definitions.