CPO (Cost Per Order) Calculator
Determine the true Cost Per Order for E-commerce. Account for Returns and Refunds to avoid overestimating profitability.
About
Cost Per Order (CPO) is the ultimate metric for e-commerce profitability, measuring the marketing cost required to sell one unit. Unlike CPL, which measures interest, CPO measures success. However, most basic calculators fail to account for Returns and Refunds. In niches like fashion, where return rates can hit 30%, ignoring this factor leads to disastrous budgeting. This tool calculates your 'True CPO' by excluding returned orders from the success pool, giving you a realistic view of your acquisition costs.
Formulas
Standard CPO considers all orders as final. True CPO adjusts for leakage:
This can also be expressed through the Return Rate (RR):
Reference Data
| E-commerce Sector | Avg Return Rate | Target CPO (as % of AOV) | Break-even ROAS |
|---|---|---|---|
| Apparel & Fashion | 20% - 30% | 25% | 4.0x |
| Consumer Electronics | 5% - 10% | 15% | 6.6x |
| Home & Garden | 8% - 12% | 20% | 5.0x |
| Beauty & Skincare | 2% - 5% | 30% | 3.3x |
| Toys & Hobbies | 5% - 8% | 20% | 5.0x |
| Jewelry & Luxury | 5% - 10% | 15% | 6.6x |
| Auto Parts | 10% - 15% | 18% | 5.5x |
| Pet Supplies | 3% - 5% | 25% | 4.0x |
| Footwear | 15% - 25% | 22% | 4.5x |
| Books & Media | 3% - 5% | 35% | 2.8x |