# Fulfillment Rate — Logistics cost as % of AOV

Fulfillment is the cost most underestimated by e-commerce businesses. It includes picking, packing, outbound shipping, and reverse logistics for returns. If not properly calculated, NCM looks positive on paper but is negative in practice.

## Where to find it

Shortcut using data you already gathered for other questions in this wizard: your courier's monthly invoice (shipping carrier) ÷ number of orders that month ÷ your AOV. Include picking and packing if you outsource them to a logistics operator — it's on the same invoice.

## If it's off

With 20% fulfillment and 30% gross margin, NCM before returns is already 10%. Any additional returns push it negative. This is the most common value-destruction cycle in e-commerce: volume grows, losses grow.

## LATAM Benchmarks

| Status | Range |
|---|---|
| Healthy | < 12% of AOV (picking + shipping + returns) |
| Alert | 12–20% of AOV |
| Critical | > 20% of AOV (logistics destroys the margin) |

## How to improve it

Last-mile negotiation is the most direct lever. With 500+ monthly shipments you have real negotiating power with couriers. Each percentage point reduction in fulfillment converts directly into net profit.

Related metrics: [AOV](https://www.uniteconomicscalculator.com/en/glossary/aov.html) · [Purchase Frequency](https://www.uniteconomicscalculator.com/en/glossary/purchase-frequency.html) · [Annual Churn](https://www.uniteconomicscalculator.com/en/glossary/annual-churn-rate.html)

---

[Calculate for free on Unit Economics Calculator](https://www.uniteconomicscalculator.com/en/) — multi-vertical unit economics diagnosis with LATAM benchmarks. Free, no signup.