Understanding Your Results
Here are some questions to ask yourself based on your results, and why they matter:
Did my Logistics to AOV % worsen?
- Why it’s important: A higher percentage indicates higher logistics costs relative to your revenue.
- Check: Did AOV go down or did Logistics Cost per Order go up?
Did my AOV go down?
- Why it’s important: A lower AOV means less revenue per order, impacting overall profitability.
- Check: Did the basket mix change or did discounting occur?
My Logistics Cost Per Order went up?
- Why it’s important: Higher logistics costs per order reduce overall profit margins.
- Check: Did the 3PL Cost per Order or the Courier Cost per Order go up?
My 3PL Cost per Order went up?
- Why it’s important: Increased 3PL costs indicate higher fulfilment expenses.
- Check: Did the Items Per Order increase? Was there a corresponding AOV increase to compensate for extra picks?
My Courier Cost Per Order Went Up?
- Why it’s important: Higher courier costs per order increase shipping expenses.
- Check: Was the KG per order higher or did the number of packages per order increase? If so, was there an increase in AOV to compensate?
My Courier Cost per KG went up?
- Why it’s important: Increased courier cost per KG indicates less efficient shipping.
- Check: Did you send to more remote customers? Did you use a more expensive courier service?
