Services And Pricing For Order Fulfillment
In order fulfillment we charge a monthly set of fees based on the services used to fulfill orders. These usually fall into 4 types of costs, inventory receiving, storage, pick and pack, and shipping. The overall costs of these processes depend on order volume and complexity. Additional order fulfillment costs can include a one-time onboarding, return handling fees, and account management fees. If you have custom packaging and product kitting or assembly needed, that will also be an additional cost.
Order Fulfillment Cost Information
- Onboarding – When first starting, a sizable amount of setup must be done, including integrating your online store, creating storage infrastructure, and training staff to handle your goods. This is very labor-intensive on our end, so we charge a one-time onboarding fee to cover it.
- Inbound Shipping – You will pay the freight or shipping cost to send items from your supplier to us.
- Inventory Receiving – Receiving your stock includes coordinating shipments as well as unloading, inspecting, tagging, counting and sorting your goods. This require lots of time and manpower, so it is billed either by the hour or by the carton.
- Storage – Warehouse fees are primarily charged based on the space your inventory takes up. We charge per pallet per month.
- Pick and Pack – We charge a flat fee to pick and pack your items, plus a cost per SKU. The size and type of packaging material required to safely ship your goods can contribute to this cost as well.
- Outbound Shipping – Normally this is billed third party on the account you choose to ship with. The actual cost of shipping your orders depends on the size, weight, and destination of your goods.
- Returns – Handling your customers’ unwanted orders is a service we also provide. There is an additional cost for this per carton as well as per SKU. You will also incur the shipping cost. If extra inspection is required to determine whether returned goods meet your standards, it will result in additional fees.
- Account Management Fees – This is a monthly flat fee that covers any additional services performed to keep your account functioning smoothly. This involves communicating with you and your suppliers, handling incidentals, updating software, and more. This cost in based on size and complexity.
In addition to the fees listed above you may need kitting, custom packaging or printing. We can help with all of these and the fees are based on your needs. Your bill will fluctuate monthly depending on each month’s order volume.
We do use a fulfillment agreement, which is a legal contract between you and us that clearly defines the pricing as well as crucial details, expectations and insurance. When partnering with us, you’ll need to review and sign such a document. It works to protect both parties from any discrepancies or issues down the road and ensures a comprehensive understanding of the business relationship.
Fulfillment costs are a large part of any ecommerce store’s overhead expenses. The process itself has a huge impact on customer experience, sales, and overall profit; making effective fulfillment a required investment. If you have questions or need help, call us (619) 297-2281 or email email@example.com. We are glad to help!