Ecommerce growth creates the opportunity for your business to operate more efficiently. If you scale effectively, then your revenue will grow faster than your costs and your workload. But that only happens when your processes evolve as order volume and operational complexity increase.
Evaluating cost per order provides a very practical way to track that relationship. When you look at it alongside average order value and margins, you can see whether your business is actually becoming more efficient as it grows and where there’s scope for improvement.
Calculating your cost per order and breaking it down into its constituent parts is the first step in identifying where you can improve efficiency and what you should scale.
Your ecommerce business can grow without scaling, and that’s when you start to feel the pain. Growth means your ecommerce business is doing more.…