{"id":1159,"date":"2019-12-31T17:17:00","date_gmt":"2019-12-31T17:17:00","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/hidden-costs-self-fulfillment-beyond-shipping-postage\/"},"modified":"2026-04-20T17:05:09","modified_gmt":"2026-04-20T17:05:09","slug":"hidden-costs-self-fulfillment-beyond-shipping-postage","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/hidden-costs-self-fulfillment-beyond-shipping-postage\/","title":{"rendered":"Beyond Shipping &amp; Postage: The Hidden Costs of Self-Fulfilment for Online Merchants"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\" blog-toc-controller-time-label-value=\"Minutes\" blog-toc-controller-button-label-value=\"Show more\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#h-what-are-the-hidden-costs-of-shipping-orders-yourself\">What are the hidden costs of shipping orders yourself?<\/a><\/p>\n\n\n\n<p><a href=\"#h-learn-more\">Learn more<\/a><\/p>\n\n\n\n<p><a href=\"#\">Have your own warehouse?<\/a><\/p>\n<\/div>\n\n\n\n<p class=\"has-text-align-center\">What do you want to learn?<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#learn\"><strong>Show Me the Hidden Costs<\/strong><\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request Fulfilment Pricing from ShipBob<\/strong><\/a><\/div>\n\n\n\n<p>Being a small ecommerce business owner is tough. You need to find ways to save money when possible while balancing all facets of running a company.<\/p>\n\n\n\n<p>In theory, DIY-ing everything may seem like the best way to cut costs. However, when you look beyond the surface, there are hidden costs of doing it all yourself.<\/p>\n\n\n\n<p>One common example of this is <a href=\"https:\/\/www.shipbob.com\/blog\/order-fulfillment\/\">order fulfilment<\/a>, which involves storing inventory, retrieving products, packing items, and shipping orders to customers. When you do this in-house, besides paying for shipping, <a href=\"https:\/\/www.shipbob.com\/blog\/self-fulfillment\/\">self-fulfilment<\/a> is free, right? Well, not exactly.<\/p>\n\n\n\n<p><a id=\"learn\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-hidden-costs-of-shipping-orders-yourself\">What are the hidden costs of shipping orders yourself?<\/h2>\n\n\n\n<p>It may seem as though you\u2019re only paying $4.50 or some other flat fee for <a href=\"https:\/\/www.shipbob.com\/blog\/postage-increase-2020\/\">postage<\/a> to ship each package, but there are <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/fulfillment-costs\/\">expenses<\/a> \u2013 both direct and indirect \u2013 that many merchants do not factor in. For instance, if you pay to rent warehousing space, you could expect a <a class=\"ProsemirrorEditor-link\" href=\"https:\/\/www.freightwaves.com\/news\/logistics-warehouse-tenants-should-brace-for-10-rate-hikes-cbre\" target=\"_blank\" rel=\"noopener\">10% rate hike<\/a> in the near future, which will quickly eat into profit margins.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-cost-of-packing-materials-and-supplies\">The cost of packing materials and supplies<\/h3>\n\n\n\n<p>When you manage <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/\">ecommerce fulfilment<\/a> in-house, there may be a variety of tools and supplies required. Depending on how you pack your products and which couriers and services you use, you may need to purchase any combination of the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Packing tape<\/li>\n\n\n\n<li>Bubble wrap, <a href=\"https:\/\/www.shipbob.com\/blog\/what-is-dunnage\/\">dunnage<\/a>, packing peanuts, air pillows, and other cushioning products<\/li>\n\n\n\n<li>Boxes, <a href=\"https:\/\/www.shipbob.com\/blog\/poly-mailers\/\">poly mailers<\/a>, and envelopes<\/li>\n\n\n\n<li>Labels and paper<\/li>\n\n\n\n<li>Printer and ink<\/li>\n\n\n\n<li>Mail bins<\/li>\n\n\n\n<li>Find out more about <a href=\"https:\/\/www.shipbob.com\/blog\/free-shipping-supplies\/\">free shipping supplies<\/a> here<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-cost-of-transportation\">The cost of transportation<\/h3>\n\n\n\n<p>Once your orders are ready to be sent to customers, you have to get them to a shipping location. This often takes the form of driving to the post office or UPS Store.<\/p>\n\n\n\n<p>By the time you get all the boxes packed into your car, you may still encounter traffic and trouble&nbsp;finding (and possibly having to pay for) a parking spot. These trips add up, as you\u2019re putting more miles on your vehicle, with the costs of gas and general wear and tear.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-cost-of-inefficiencies\">The cost of inefficiencies<\/h3>\n\n\n\n<p>If <a href=\"https:\/\/www.shipbob.com\/blog\/retail-fulfillment\/\">retail fulfilment<\/a> is not your core business, you don\u2019t always know the best practices. When your processes consist of manual, redundant steps, you can make <a href=\"https:\/\/www.shipbob.com\/blog\/packing-shipping-mistakes-businesses-makes\/\">common but costly shipping mistakes<\/a>. As more orders roll in, you duplicate these inefficiencies.<\/p>\n\n\n\n<p>You also lose additional efficiencies without:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bulk discounts<\/strong>: If you\u2019re not shipping millions of packages each year, you don\u2019t have the best rates negotiated with couriers<\/li>\n\n\n\n<li><strong>Integration with other systems<\/strong>: If your processes aren\u2019t connected to the technologies you already use, you lack speed and automated processes, data to drive decisions, and transparency for customers<\/li>\n\n\n\n<li><strong>Multiple locations<\/strong>: If you are stuck shipping orders out from a single location, you may have to pay higher postage for packages that travel across multiple shipping zones<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-cost-of-making-your-customers-wait\">The cost of making your customers wait<\/h3>\n\n\n\n<p>When you fulfil orders in-house, you typically settle for the lowest <a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/calculate-shipping-costs\/\">shipping costs<\/a> you can get. Though it may seem like the best option for you, it might not be as favorable for all of your customers.<\/p>\n\n\n\n<p>Let\u2019s say you\u2019re based out of New York, and you need to ship a product to a customer who lives in Los Angeles. Unless you opt for expedited shipping, a package takes time to travel thousands of miles.<\/p>\n\n\n\n<p>When shipments take too long to reach your customers, you may be jeopardizing future business. Why is this? Consumers expect Prime-like service today.<\/p>\n\n\n\n<p>Nobody likes to wait. Slow delivery times can fail to meet expectations in your customers\u2019 eyes. When this happens, they are less likely to become repeat customers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-cost-of-shipping-insurance\">The cost of shipping insurance<\/h3>\n\n\n\n<p>Not everyone chooses to insure their packages. Depending on the courier, service, type of item, condition of the package, and shipping destination, you may already be covered against loss or <a href=\"https:\/\/www.shipbob.com\/blog\/prevent-shipping-damages\/\">shipping damage<\/a> if the contents of your package are worth $100 or less.<\/p>\n\n\n\n<p>If not, <a href=\"https:\/\/www.shipbob.com\/blog\/shipping-insurance\/\">shipping insurance<\/a> is another cost if you choose to play it safe. Of course, if your package is damaged, lost, or stolen, you still have to file a claim, costing you more time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-opportunity-cost-of-completing-higher-dollar-tasks\">The opportunity cost of completing higher-dollar tasks<\/h3>\n\n\n\n<p>Running a successful ecommerce business means you have an infinite number of tasks to complete. Opportunity cost refers to the loss of potential gain from other alternatives when one option is chosen.<\/p>\n\n\n\n<p>Every hour you spend checking for new orders, packing your items, driving to the post office, waiting in line, and shipping your products, you\u2019re missing the opportunity to grow your customer base, develop new products, market your business, and much more.<\/p>\n\n\n\n<p>Since time is the new currency of entrepreneurs, you may need to outsource administrative, operational tasks that give you back more time and can be done by someone other than you \u2013 especially when they\u2019re not expensive.<\/p>\n\n\n\n<p>Think about how you spend your time and the daily tasks you complete. How much would you pay others to complete these tasks? By writing them out, you quickly identify which tasks are \u201clow-dollar\u201d and \u201chigh-dollar\u201d activities. You will find that not all tasks are created equal.<\/p>\n\n\n\n<p>The table below is an example from ShipBob customer Teri Miyahira\u2019s blog post, \u201c<a href=\"https:\/\/www.shipbob.com\/blog\/why-moving-away-from-self-fulfillment-was-my-smartest-business-decision-to-date\/\">Why Moving Away from Self-Fulfilment Was My Smartest Business Decision to Date<\/a>.\u201d<\/p>\n\n\n\n<p>In it, she breaks down the tasks she was completing into categories by dollar amount. While the exact dollar amounts may&nbsp;differ for your business, this exercise helps show the real value of an entrepreneur\u2019s time.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><th><strong>$10\/hour<\/strong><\/th><th><strong>$100\/hour<\/strong><\/th><th><strong>$1,000\/hour<\/strong><\/th><th><strong>$10,000\/hour<\/strong><\/th><\/tr><tr><td><a href=\"https:\/\/www.shipbob.com\/blog\/warehousing\/\">Warehousing<\/a> and <a href=\"https:\/\/www.shipbob.com\/inventory-management\/\">inventory management<\/a><\/td><td><span>Talking to qualified leads<\/span><\/td><td><span>Negotiating with qualified leads\/prospects (especially for <a href=\"https:\/\/www.shipbob.com\/blog\/b2b-ecommerce\/\">B2B ecommerce<\/a>)<\/span><\/td><td><span>Creating new products\/services<\/span><\/td><\/tr><tr><td>Order fulfilment and packaging<\/td><td><span>Helping an existing client<\/span><\/td><td><span>Creating marketing campaigns<\/span><\/td><td><span>Expanding to new markets\/locations<\/span><\/td><\/tr><tr><td>Post office and running errands<\/td><td><span>Drafting emails to leads and customers<\/span><\/td><td><span>Writing sales copy<\/span><\/td><td><span>Negotiating major deals<\/span><\/td><\/tr><tr><td>Customer service<\/td><td>Graphics and video editing<\/td><td>Creating split tests<\/td><td>Drafting brand messaging or positioning<\/td><\/tr><tr><td>Organising, cleaning<\/td><td>Fixing website<\/td><td>Planning a new sales funnel<\/td><td>Final decision in hiring team members<\/td><\/tr><tr><td>Basic market research<\/td><td>Cost analysis<\/td><td>Scouting for new team member talent<\/td><td>Forward vision thinking and long-term goal setting<\/td><\/tr><tr><td>Ordering supplies<\/td><td>Content creation (writing blog posts or on social media)<\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Miyahira realized that every hour she spent completing a $10\/hour task instead of a $10,000\/hour task, she was effectively losing $9,990\/hour in revenue-generating activities. In other words, time is money. If you\u2019re spending significant time on the low-dollar tasks, you are stunting or stalling your growth.<\/p>\n\n\n\n<p>When Miyahira found herself swamped by low-dollar activities, she realized she needed to <a href=\"https:\/\/www.shipbob.com\/blog\/outsourced-supply-chain\/\">outsource supply chain management<\/a>-related tasks. To her delight, <a href=\"https:\/\/www.shipbob.com\/3pl\/\">3PL companies<\/a>&nbsp;already handle&nbsp;most of the $10\/hour activities.<\/p>\n\n\n\n<p>By delegating these, she was able to focus on the higher-dollar tasks to make the best use of her limited time, generate more revenue, and scale her business much quicker.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-learn-more\">Learn more<\/h2>\n\n\n\n<p>When you are on a tight budget, doing everything yourself can feel like your only option. While self-fulfilment may seem mostly free, there are several potential hidden costs. Though they may appear to be&nbsp;miniscule, they should not be excluded when calculating the total costs of fulfilment.<\/p>\n\n\n\n<p>Sometimes, these combined costs will actually be more than the cost of outsourced fulfilment. Of course, <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/fulfillment-costs\/\">fulfilment centre costs<\/a>&nbsp;vary across <a href=\"https:\/\/www.shipbob.com\/3pl\/\">3PLs<\/a>, and the best solution for your business will depend on several factors.<\/p>\n\n\n\n<p>Keeping <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/in-house-fulfillment\/\">fulfilment in-house<\/a> makes sense for some merchants (those who personalise every item, need to control exactly how packages are wrapped, and are still small enough that it\u2019s not taking up too much time).<\/p>\n\n\n\n<p>But what works early on may become unsustainable as your business grows. A founder\u2019s time is one of the most precious resources. If it\u2019s time to <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/outsourced-fulfillment\/\">outsource shipping<\/a>, check out ShipBob.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"ShipBob Fulfillment Center Guided Tour - 3D 360\u00b0 VR Video\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/YdTbM4XlizY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWe\u2019ve been very impressed by ShipBob\u2019s high accuracy as well as their ability to meet their SLAs. Before we migrated to ShipBob, this was a challenge due to limited resources and time, and we used to frequently make shipping mistakes ourselves.\u201d<\/em><\/p>\n\n\n\n<p><a href=\"https:\/\/www.shipbob.com\/blog\/waveform-lighting\/\">Waveform Lighting Team<\/a><\/p>\n<\/blockquote>\n\n\n\n<p>See if ShipBob is the right fit for you.<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request a fulfilment quote<\/strong><\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Have your own warehouse?<\/h2>\n\n\n\n<p>ShipBob has a best-in-class warehouse management system (WMS) for brands that have their own warehouse and need help managing inventory in real time, reducing picking, packing, and shipping errors, and scaling with ease.<\/p>\n\n\n\n<p>With <a href=\"https:\/\/www.shipbob.com\/product\/wms\/\">ShipBob\u2019s WMS<\/a>, brands can even adopt a hybrid fulfilment model, employing ShipBob\u2019s WMS technology in their own warehouses while simultaneously leveraging ShipBob\u2019s fulfilment services in any of ShipBob\u2019s fulfilment centres across the US, Canada, Europe, and Australia to improve cross-border shipping, reduce costs, and speed up deliveries. <a href=\"https:\/\/www.shipbob.com\/quote-plus\/\">Talk to our WMS team today to learn more<\/a>.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Many ecommerce businesses manage order fulfilment in-house to save money. Besides shipping, what are the costs of doing it yourself?<\/p>\n","protected":false},"author":110,"featured_media":25599,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[2,7,13],"class_list":["post-1159","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-3pl-third-party-logistics","blogcategories-fulfillment","blogcategories-shipping"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Beyond Shipping &amp; Postage: The Hidden Costs of Self-Fulfilment for Online Merchants - ShipBob Australia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shipbob.com\/au\/blog\/hidden-costs-self-fulfillment-beyond-shipping-postage\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Beyond Shipping &amp; Postage: The Hidden Costs of Self-Fulfilment for Online Merchants\" \/>\n<meta property=\"og:description\" content=\"Many ecommerce businesses manage order fulfilment in-house to save money. 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