Order Fulfillment Pricing
Order fulfillment pricing can vary a lot depending on the fulfillment company you choose to go through, but we wanted to at least give you an idea of what you can expect when it comes to order fulfillment fees.
For the purpose of transparency, we thought you may find this useful, so let’s get to it.
Choosing A 3PL Company
If you’re not familiar with what a third-party logistics (3PL) provider is, it is defined as a company that outsources logistics services.
Of course, 3PL companies offer different fulfillment services, but often consist of the following.
- Production
- Warehousing
- Procurement
- Distribution
- Transportation
- Logistics Services
Choosing An Order Fulfillment Company
To sum up, 3PL services cover a wide range of logistical services, an order fulfillment company provides services specifically for picking, packing and shipping products to customers.
By choosing an order fulfillment company they will stock your goods at their warehouse. Then, when orders are received from you, the order fulfillment company will pick your items off their shelves, package them and prepare them for shipping. Most order fulfillment companies use shipping carriers, such as UPS or FedEX.
Likewise, fulfillment companies can work with a wide range of order types, although some specialize more in ecommerce fulfillment services.
Order Fulfillment Pricing
Order fulfillment pricing is the cost associated to your order fulfillment process. This may include;
Understanding Cost Per Order
Some order fulfillment companies charge per order. Cost per order refers to the total price you pay for fulfilling a single order. In this case, the cost per order should include fees from inventory storage, picking, packing or account management fees.
3PL And Fulfillment Pricing Models
Comparatively, 3PL companies can use a number of different pricing models, so you want to make sure you clearly understand them. Equally, sellers and merchants need to be aware of all pricing models, as well as add-ons.
Some of the typical order fulfillment fees you’d likely come across include;
- Customer Service/Support Cost
- Inventory Storage Cost
- Kitting Cost
- Picking And Packing Cost
- Receiving Cost
Let’s use inventory storage cost as an example.
On the one hand. one fulfillment company may charge you on a per pallet basis, we’ll say $25 per pallet per month in this scenario. However, another fulfillment company may charge you by the cubic foot, perhaps $0,20 per cubic foot monthly.
Depending on the fulfillment provider, you may be charged by hour, month, pallet, per order or per shipment. As shown above, it all depends on the order fulfillment company itself.
In the long run, this is why we always say order fulfillment pricing is hard to determine without knowing much of anything else.
How Can I Determine My Fulfillment Pricing?
Speak with one of our fulfillment experts, that way you can avoid spending time and effort trying to figure it out on your own. Given these points, by contacting us, you can find out what your fulfillment fees are going to be based on what fulfillment services you will use.
While we wanted to give you a general idea of the fulfillment fees and pricing models you’ll see, we recommend giving us a call as every fulfillment need is unique.
You can reach us at 1-920-967-9201 or you can use our contact form.
