Educational only: Business decision support, not accounting, tax or legal advice.
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Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Ecommerce sellers comparing self-fulfilment with a third-party fulfilment proposal.
Outputs
Monthly and per-order costs, the lower-cost option and the positive crossover volume.
Start here
Enter both options on the same pre-tax basis and include loaded labour in self-fulfilment.
Use a different tool when: Do not use this to test order contribution after the full fee stack; use Ecommerce Order Profitability Planner for that decision. Use this tool to compare self-fulfilment and third-party cost contracts at a chosen order volume.
Commerce & operations
Fulfilment Cost Comparison: monthly and per-order costs
Monthly and per-order costs, the lower-cost option and the positive crossover volume.
Amounts use the same currency as your inputs. No currency conversion is performed.
Fulfilment cost contracts
Compare the same order volume using your own records and quote amounts.
Your numbers stay in this browser
Use the same monthly volume for both compared options.
Your average carrier charge for the compared order mix.
Hands-on and administrative fulfilment time for one order.
Account, storage minimum or other recurring amount from the quote.
The quote amount for the representative order.
The quote amount for the same order and destination mix.
Packaging, other variable costs and loaded labourOpen the assumptions you are less likely to change on every comparison.
Workspace, software or other monthly cost attributable to self-fulfilment.
Enter a separate charge only if it is not already represented by labour minutes.
Packaging materials consumed by one order.
Other per-order cost not included above.
Use the business cost of labour, not a customer billing rate.
Packaging materials or provider packaging charge.
Other per-order charges in the contract.
Internal exception, hand-off or administration time that remains after outsourcing.
Use the business cost of the remaining internal time.
Fulfilment cost comparison
User-entered costs, excluding indirect tax.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
Negative values favour third-party fulfilment; positive values favour self-fulfilment. The marker is your entered monthly volume.
Third-party minus self
- Equal monthly cost
- 0.00
| Order volume (orders/month) | Third-party minus self |
|---|---|
| 250 orders/month | -654.17 |
| 500 orders/month (current) | -1,758.33 |
| 1,000 orders/month | -3,966.67 |
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Entered volume-1,758.33Baseline
Half volume-654.171,104.17
Double volume-3,966.67-2,208.33
Third-party shipping +1-1,258.33500.00
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Lower cost at entered volume
Self-fulfilment monthly total
monthly fixed cost + orders × variable cost per order8,600/month ex indirect taxThird-party monthly total
monthly fixed cost + orders × variable cost per order6,841.67/month ex indirect taxLower-cost option at entered volume
compare self-fulfilment monthly cost with third-party monthly costthird-partyResultThird-party fulfilment
Compares the two monthly totals at the same entered order volume, excluding indirect tax.
Review the fulfilment comparison formulas →Inputs used by these formula steps
- Self-fulfilment monthly totalOrders
- 500
- Self-fulfilment monthly totalFixed Cost
- 100
- Self-fulfilment monthly totalVariable Cost Per Order
- 17
- Third-party monthly totalOrders
- 500
- Third-party monthly totalFixed Cost
- 550
- Third-party monthly totalVariable Cost Per Order
- 12.58
- Lower-cost option at entered volumeSelf Total
- 8,600
- Lower-cost option at entered volumeThird Party Total
- 6,841.67
Monthly cost difference
Self-fulfilment monthly total
monthly fixed cost + orders × variable cost per order8,600/month ex indirect taxThird-party monthly total
monthly fixed cost + orders × variable cost per order6,841.67/month ex indirect taxThird-party monthly cost difference
third-party total − self-fulfilment total-1,758.33/month ex indirect taxResult1,758.33/month
Shows the absolute monthly gap; the lower-cost option identifies the direction.
Review the monthly cost difference formula →Inputs used by these formula steps
- Self-fulfilment monthly totalOrders
- 500
- Self-fulfilment monthly totalFixed Cost
- 100
- Self-fulfilment monthly totalVariable Cost Per Order
- 17
- Third-party monthly totalOrders
- 500
- Third-party monthly totalFixed Cost
- 550
- Third-party monthly totalVariable Cost Per Order
- 12.58
- Third-party monthly cost differenceSelf Total
- 8,600
- Third-party monthly cost differenceThird Party Total
- 6,841.67
Self-fulfilment cost per order
Self-fulfilment labour per order
minutes ÷ 60 × loaded labour cost per hour7/order ex indirect taxSelf-fulfilment variable cost per order
pick/pack + packaging + shipping + other + labour17/order ex indirect taxSelf-fulfilment monthly total
monthly fixed cost + orders × variable cost per order8,600/month ex indirect taxSelf-fulfilment effective cost per order
monthly option cost ÷ entered monthly orders17.20/order ex indirect taxResult17.20
Monthly self-fulfilment cost divided by entered monthly orders, excluding indirect tax.
Review the effective cost-per-order formula →Inputs used by these formula steps
- Self-fulfilment labour per orderMinutes
- 12
- Self-fulfilment labour per orderHourly Cost
- 35
- Self-fulfilment variable cost per orderOrders
- 500
- Self-fulfilment monthly totalOrders
- 500
- Self-fulfilment monthly totalFixed Cost
- 100
- Self-fulfilment monthly totalVariable Cost Per Order
- 17
- Self-fulfilment effective cost per orderOrders
- 500
- Self-fulfilment effective cost per orderMonthly Total
- 8,600
Self-fulfilment monthly cost
Self-fulfilment variable cost per order
pick/pack + packaging + shipping + other + labour17/order ex indirect taxSelf-fulfilment monthly total
monthly fixed cost + orders × variable cost per order8,600/month ex indirect taxResult8,600/month
Fixed monthly cost plus entered orders multiplied by variable cost per order, excluding indirect tax.
Review the monthly option cost formula →Inputs used by these formula steps
- Self-fulfilment variable cost per orderOrders
- 500
- Self-fulfilment monthly totalOrders
- 500
- Self-fulfilment monthly totalFixed Cost
- 100
- Self-fulfilment monthly totalVariable Cost Per Order
- 17
Third-party cost per order
Third-party variable cost per order
pick/pack + packaging + shipping + other + remaining internal labour12.58/order ex indirect taxThird-party monthly total
monthly fixed cost + orders × variable cost per order6,841.67/month ex indirect taxThird-party effective cost per order
monthly option cost ÷ entered monthly orders13.68/order ex indirect taxResult13.68
Monthly third-party cost divided by entered monthly orders, excluding indirect tax.
Review the effective cost-per-order formula →Inputs used by these formula steps
- Third-party variable cost per orderOrders
- 500
- Third-party monthly totalOrders
- 500
- Third-party monthly totalFixed Cost
- 550
- Third-party monthly totalVariable Cost Per Order
- 12.58
- Third-party effective cost per orderOrders
- 500
- Third-party effective cost per orderMonthly Total
- 6,841.67
Positive cost crossover
Positive cost crossover
(third-party fixed − self fixed) ÷ (self variable − third-party variable)101.89Result102 orders/month
The positive algebraic point where the two monthly cost lines meet. Displayed to the nearest whole order for operational planning; the engine retains full precision.
Review the crossover formula →Inputs used by these formula steps
- Positive cost crossoverFixed Difference
- 450
- Positive cost crossoverVariable Difference
- 4.42
Inputs used
- Orders per month
- 500
- Self-fulfilment monthly fixed cost, excluding indirect tax
- 100.00
- Self pick-and-pack cost per order, excluding indirect tax
- 0.00
- Self packaging cost per order, excluding indirect tax
- 1.50
- Self shipping cost per order, excluding indirect tax
- 8.00
- Self other variable cost per order, excluding indirect tax
- 0.50
- Self labour minutes per order
- 12
- Self loaded labour cost per hour, excluding indirect tax
- 35.00
- Third-party monthly fixed cost, excluding indirect tax
- 550.00
- Third-party pick-and-pack cost per order, excluding indirect tax
- 3.50
- Third-party packaging cost per order, excluding indirect tax
- 1.00
- Third-party shipping cost per order, excluding indirect tax
- 7.00
- Third-party other variable cost per order, excluding indirect tax
- 0.50
- Internal labour minutes per third-party order
- 1
- Internal loaded labour cost per hour, excluding indirect tax
- 35.00
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| baselineLabourMinutesPerOrder | Hands-on and administrative fulfilment time for one order. | minutes/order | 0 to 10000 | Required | 12 |
| baselineLoadedLabourCostPerHourExGst | Use the business cost of labour, not a customer billing rate. | currency units/labour hour, ex indirect tax | 0 to 10000000 | Required | 35 |
| baselineMonthlyFixedCostExGst | Workspace, software or other monthly cost attributable to self-fulfilment. | currency units/month, ex indirect tax | 0 to 10000000 | Required | 100 |
| baselineOtherVariableCostPerOrderExGst | Other per-order cost not included above. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 0.5 |
| baselinePackagingCostPerOrderExGst | Packaging materials consumed by one order. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 1.5 |
| baselinePickPackCostPerOrderExGst | Enter a separate charge only if it is not already represented by labour minutes. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 0 |
| baselineShippingCostPerOrderExGst | Your average carrier charge for the compared order mix. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 8 |
| candidateLabourMinutesPerOrder | Internal exception, hand-off or administration time that remains after outsourcing. | minutes/order | 0 to 10000 | Required | 1 |
| candidateLoadedLabourCostPerHourExGst | Use the business cost of the remaining internal time. | currency units/labour hour, ex indirect tax | 0 to 10000000 | Required | 35 |
| candidateMonthlyFixedCostExGst | Account, storage minimum or other recurring amount from the quote. | currency units/month, ex indirect tax | 0 to 10000000 | Required | 550 |
| candidateOtherVariableCostPerOrderExGst | Other per-order charges in the contract. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 0.5 |
| candidatePackagingCostPerOrderExGst | Packaging materials or provider packaging charge. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 1 |
| candidatePickPackCostPerOrderExGst | The quote amount for the representative order. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 3.5 |
| candidateShippingCostPerOrderExGst | The quote amount for the same order and destination mix. | currency units/order, ex indirect tax | 0 to 10000000 | Required | 7 |
| ordersPerMonth | Use the same monthly volume for both compared options. | whole orders/month | 1 to 10000000 | Required | 500 |
Fulfilment Cost Comparison: monthly and per-order costs
Use the entered-volume result to compare cost, while keeping service level, control and switching risk as separate decisions.
Formula summary
- Primary formula
- monthly cost = fixed monthly cost + orders × (pick/pack + packaging + shipping + other variable cost + loaded labour per order)
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Act on the result
Validate the lower-cost option against a supplier quote or loaded internal labour record before changing fulfilment.
Stress-test the decision
Test a lower and higher monthly order volume and confirm that all minimum fees and variable charges are included.
When this estimate can be misleading
- All amounts are user-entered records or quote assumptions; there are no provider presets.
- The numeric comparison excludes delivery speed, service accuracy, contract risk and customer experience.
- It excludes onboarding, exit costs, cash timing, tier changes, tax credits and accounting advice.
- Use the entered-volume result to compare cost, while keeping service level, control and switching risk as separate decisions.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Self-Fulfilment vs 3PL: Compare Cost, Capacity and Service
Compare user-entered fixed, per-order and loaded-labour costs while keeping capacity and service-level trade-offs explicit.
Read guide - Fulfilled by Platform vs Merchant Fulfilment
Compare fulfilment structures using aligned order volume, fees, handling cost, service scope and capacity.
Read guide - Own Vehicle vs Third-Party Carrier
Compare owned and contracted delivery using aligned fixed, variable, capacity and service assumptions.
Read guide
Frequently asked questions
How do I compare self-fulfilment and third-party cost contracts at a chosen order volume?
Validate the lower-cost option against a supplier quote or loaded internal labour record before changing fulfilment.
Does Margin101 include 3PL or FBA fee presets?
No. Provider contracts vary by account, SKU, zone, storage, minimums and service level. Enter your actual quote amounts.
Why include internal labour after outsourcing?
Exception handling, stock administration and provider coordination can remain internal costs even when pick and pack is outsourced.
Does the lower-cost option mean the better provider?
No. Compare delivery speed, accuracy, systems, returns, contract terms and risk separately.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.