What is Cost Per Order (CPO) and How Do You Calculate It?

Cost per order (CPO) is the total calculated cost that is incurred by a customer making a purchase and helps determine profit made from a single order. Reference the below image to understand how to calculate CPO. Holding everything else constant, a lower CPO translates to greater profitability.

Looking to reduce your CPO?
Assess your storage and warehousing costs. It may be best to outsource your fulfillment needs to a dedicated 3PL. Some may think it’s cheaper and more efficient to manage fulfillment in-house, however, many businesses actually grow faster while reducing costs by working with a 3PL.

About the Author

WSI Team

WSI is one of the largest privately held 3rd party logistics companies in the U.S. and spans a nationwide distribution network with global logistics reach.