Employ a Detailed Approach to Merchandise Analysis

As these costs have increased, the industry has seen sell ratios climb between the upper 20 to lower 30 percent range of revenue. Factoring this at the item level helps control this cost.

Fulfillment Costs
The next largest variable cost is the cost to pick, pack and ship the product to the customer. For most companies, this cost ranges between 8 and 12 percent of sales. You may find using a set percentage for all products is the most efficient way to allocate these costs.