What does CPO stand for

Cost per order. It is the average total cost to sell and fulfill one order.

What should be included in CPO

Both direct costs like product, packaging, and shipping, and indirect costs like salaries, rent, software, and returns handling. Allocate shared costs consistently.

Is a lower CPO always better

Usually yes, but context matters. If lowering CPO harms customer experience or slows growth, the tradeoff may not be worth it.

How often should I measure CPO

Monthly for trend visibility, with weekly spot checks for major campaigns or peak seasons.

There is no universal target. A good CPO supports healthy contribution margin after product cost and shipping and leaves profit after overhead. Compare CPO to average order value and gross margin to judge sustainability.

How do discounts affect CPO

Discounts do not change cost directly, but they reduce revenue per order. If discounting does not raise order volume or average order value, contribution margins shrink.

Can CPO differ by channel

Yes, and it should be measured that way. Some channels have higher marketing cost or higher return rates. Channel level CPO highlights where profits are made or lost.

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