What Is AOC (Average Order Cost) in Print-on-Demand?

If you want to see how AOC fits into the bigger picture, read our guide on AOP (Average Order Profit). Together, AOC and AOP reveal your true margins. Or, if you’d rather skip spreadsheets and track AOC automatically, check out PodVector. For industry basics on cost of goods, see Shopify’s COGS guide.

Definition of AOC

AOC stands for Average Order Cost. It’s the total cost of fulfilling an order, averaged across all orders in a given period. In POD, AOC includes four main elements:

• COGS: The base product cost + printing from Printify or Printful
• Shipping: Fulfillment charges (domestic and international)
• Ad Spend per Order: Average marketing spend per sale
• Unit Ops: Shopify payment processing fee (percentage + flat rate)

Tracking AOC is essential because it shows how much each order really costs you, beyond just product and shipping.

Formula for AOC

The formula for AOC is:

AOC = COGS per order + Shipping per order + Ad Spend per order + Payment Fees

Each element should be calculated as an average across all your orders in a time period (e.g., weekly, monthly).

Example Calculation

Let’s say your store averages the following costs per order:

• COGS: $12
• Shipping: $4
• Ad Spend per Order: $8
• Payment Fees: $1.20

AOC = $12 + $4 + $8 + $1.20 = $25.20

If your average order value (AOV) is $30, that leaves $4.80 of profit before accounting for refunds. If your AOC creeps too close to AOV, your store becomes unprofitable.

Why AOC Matters in POD

• Pricing decisions: If your AOC is too high compared to AOV, you need to raise prices or reduce costs.
• Marketing strategy: Knowing AOC shows how much ad spend your margins can handle.
• Product evaluation: Identify which products or designs carry higher costs relative to revenue.
• Cash flow forecasting: AOC helps predict profitability at scale (100 vs. 10,000 orders).

Benchmarks: What’s a Good AOC?

A “good” AOC depends on your AOV and profit goals, but here are rough POD benchmarks:

• $15–$20 AOC: Healthy for shirts, mugs, and low-cost items if AOV is $25–$30.
• $20–$25 AOC: Typical for mid-range products (hoodies, sweatshirts).
• $25–$40 AOC: Expected for higher-ticket items like canvas prints or bundles.

The key is keeping enough margin between AOV and AOC to leave at least a 5–10% operating profit margin.

How to Track AOC (Manual vs Automated)

Manual (Spreadsheets)

1. Export Shopify order data (AOV, refunds, fees).
2. Get Printify/Printful COGS and shipping costs.
3. Divide ad spend by number of purchases to get average ad cost per order.
4. Add Shopify payment fees per order.
5. Combine all values to find AOC.

Automated (PodVector)

With PodVector, AOC is calculated automatically. The app syncs costs from Shopify, Printify, Printful, and ad platforms, giving you real-time insights without the manual math.

How AOC Relates to Other Metrics

• AOC vs AOV: AOV shows revenue per order, AOC shows cost per order.
• AOC vs AOP: Subtract AOC from AOV to get AOP (Average Order Profit).
• AOC vs Operating Profit: AOC is per-order, operating profit is overall business-level performance.

FAQs

Does AOC include refunds?

Refunds aren’t part of AOC directly, but you should allocate refund costs across orders to avoid overestimating profit.

What’s the difference between AOC and COGS?

COGS is just the product and printing cost. AOC includes COGS plus shipping, ad spend, and processing fees.

Why is my AOC so high?

It may be due to high shipping costs, aggressive ad spend, or low AOV. Focus on improving AOV or cutting ad inefficiency.

Can PodVector calculate AOC automatically?

Yes. PodVector pulls all costs in real time and shows AOC alongside AOV, AOP, and margins.