> ## Documentation Index
> Fetch the complete documentation index at: https://docs.sourcemedium.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Fulfillment Costs

> How fulfillment and 3PL costs entered in the Configuration Sheet affect profitability reporting

Fulfillment costs cover the fees charged by 3PLs, fulfillment centers, and warehouses to pick, pack, and ship your orders.

## What Are Fulfillment Costs?

Fulfillment costs include:

* **Pick and pack fees**: Per-order handling charges
* **Storage fees**: Monthly warehouse storage
* **3PL fees**: ShipBob, Deliverr, Amazon FBA, etc.
* **Packaging materials**: Boxes, tape, inserts

<Note>
  Fulfillment costs are separate from shipping costs (carrier fees). Both contribute to your total cost to fulfill an order.
</Note>

## Where Fulfillment Costs Appear

| Module              | Usage                       |
| ------------------- | --------------------------- |
| Executive Summary   | Part of COGS / gross profit |
| Orders Deep Dive    | Order-level profitability   |
| Contribution Margin | Full order cost analysis    |

## Setting Up Fulfillment Costs

<Steps>
  <Step title="Calculate your average cost">
    Review 3PL invoices to determine average fulfillment cost per order
  </Step>

  <Step title="Open Configuration Sheet">
    Navigate to the fulfillment costs section
  </Step>

  <Step title="Enter your rate">
    Use flat rate per order or percentage of order value
  </Step>
</Steps>

## Common Approaches

| Approach                  | When to Use                      |
| ------------------------- | -------------------------------- |
| **Flat rate per order**   | Single 3PL with predictable fees |
| **Flat rate per item**    | When costs scale with order size |
| **Percentage of revenue** | When 3PL charges % of GMV        |

<Tip>
  Start with your average cost per order from the last 3 months. You can refine as you get more data.
</Tip>

## Related Resources

<CardGroup cols={2}>
  <Card title="Set up fulfillment costs" icon="warehouse" href="/data-inputs/configuration-sheet/costs/how-do-i-surface-fulfillment-costs-within-my-dashboard">
    Step-by-step setup guide
  </Card>

  <Card title="Shipping costs" icon="truck" href="/help-center/raw-data-source-overviews/configuration-sheet/costs/shipping-costs">
    Track carrier and delivery costs
  </Card>
</CardGroup>