How to calculate packaging cost per order
Small packaging items are easy to miss. Count the materials you actually use, then allocate batch purchases across saleable output.
Open the Cost Per Unit Calculator →Count everything that goes into a finished parcel
Lay out the packaging for one normal order. Count the box or envelope, protective material, labels, tape, card inserts and other items you actually use. Small consumables can be easy to miss because they are bought in batches and used a little at a time.
Keep the packaging record close to the packing process. If one product uses a rigid mailer and another uses a box, give them different profiles. An average for the whole shop may be fine for a broad forecast but hide the cost of a specific item.
Spread delivered batch costs across usable quantities
Include delivery you pay on packaging purchases and divide the total by the units you can use. A £24 delivered batch of 100 usable mailers costs £0.24 each. If only 90 are usable, it costs about £0.266667 each before rounding for display.
For tape or protective material, estimate the amount used per parcel and check it against purchases over time. Avoid treating a whole roll as one order's cost or assuming a roll is free because it was bought last month. Use one consistent method and revise it when packaging changes.
| Illustrative parcel material | Allocated cost |
|---|---|
| Mailer | £0.24 |
| Protective material | £0.10 |
| Label | £0.04 |
| Tape | £0.03 |
| Insert | £0.09 |
| Total packaging | £0.50 |
Test quantity changes before applying one cost everywhere
A two-item order may need two protective sleeves but only one outer box and one address label. Separate per-item materials from per-order materials when you cost a bundle or wholesale order. If the outer parcel changes size, check whether postage changes too.
Use the unit-cost tool for batch purchases, then save the relevant allowance in the product or cost profile. Recheck it after a supplier increase or packaging redesign. A few pence per order can become a noticeable amount across a large number of sales.
A worked example
A delivered pack of 100 envelopes costs £18 but five are unusable. The cost per usable envelope is £18 ÷ 95 = £0.19 after rounding.
Before you use the result
- Cost the actual parcel for the product.
- Include small consumables and delivered purchase cost.
- Divide by usable packaging quantities.
- Separate per-item and per-order materials.
- Review postage if packaging changes packed size or weight.
Common questions
Should packaging be included in product cost?
You can include it in a broader unit cost or keep it in the packaging field, provided it appears once. Separate fields make it easier to see whether a later increase comes from the product or fulfilment.
How often should I check the allowance?
Check it when suppliers, parcel materials or basket sizes change. A periodic comparison with purchase records can also show whether the allowance is realistic without counting every centimetre of tape on every order.
Put the numbers into practice
Cost Per Unit Calculator →How to include wastage in cost per saleable unit →How to price a product with free shipping →How to price a product bundle after packaging and postage →A practical calculation guide, not professional accounting, legal or tax advice. Examples are illustrative unless identified as official. Calculation methodology and limitations.