Demystifying Fulfilment Costs

fulfilment costs

A Beginner’s Guide to Understanding Fulfilment Pricing

So, you’re thinking about outsourcing your fulfilment needs, but the whole fulfilment costs thing seems like a maze? Don’t worry, we’ve got your back! Let’s dive into what makes up those fulfilment quotes you’ve been seeing.

Fulfilment costs explained

First up, receiving costs. Picture this: your inventory arrives at the fulfilment centre. Is it on a big ol’ pallet, or neatly packed in cartons? If it’s on a pallet, the team needs to wrangle some extra equipment to get it unloaded. Oh, and if each pallet or carton has just one type of product (single SKU), it makes life easier for everyone and might save you some money. Plus, having barcodes on everything helps keep things organised, but hey, that might come with a setup cost.

Next, storage costs. Think of it like renting a storage unit, but on a bigger scale. You pay based on how much space your stuff takes up. Need special storage conditions, like keeping things cool or safe for hazardous items? That might bump up the price a bit.

Now, onto pick and pack. This is where the magic happens! Your items get plucked from the shelves and lovingly packed up for shipping. The more complex your orders (lots of items, special requests), the more it might cost.

Packaging time! Those boxes, bubble wraps, and envelopes? Yep, they’re not free. And if you want fancy, custom packaging, that could mean shelling out a bit extra.

Paperwork, anyone? Some shipments need special docs, like customs forms. The fulfilment folks will handle that for you, but it might add a little something to your fulfilment costs.

Despatching time! Shipping ain’t free, folks. Standard delivery is your budget option, while express gets your stuff there pronto. Pick your poison, but remember, faster usually means pricier.

Last but not least, setup costs. Getting your website talking to the fulfilment centre‚Äôs fancy software? That’s gonna need some setup. And if you’re licensing their software, well, that’s another line on the bill.

One last note

Not every fulfilment company is the same. Whilst there are a few generalist who will take pretty much any product, most specialise in particular products. For example; food, clothing, pharmaceuticals, chilled items, small fast moving consumer items. Some will only accept products that weigh under 2kgs and are no bigger than a shoe box. Some are happy to store your products for months (they make their money on storage), others want you to turn around your products inside a month (they make their money on the pick and pack fee). Some will advertise they take B2B, but only really want your business if it come with a certain amount of B2C/D2C business. Some will accept start-ups, most will not and require a minimum of 300 orders per months.

Phew! That’s a lot to take in, but don’t worry. That’s why you should use Evestico. We’re here to guide you through it all. We know, who does what, who wants what and who the best provider is for your particular product. That’s experience you simply can’t find anywhere else. We are not just a quoting service for fulfilment costs, we will help you make savvy decisions for your business and be your ‘man-on-the-ground’ in the UK and Europe. So let’s navigate this fulfilment journey together!