There are several fulfillment cost calculators out there that can help you estimate fulfillment costs. However, many fulfillment cost calculators do not take into account two big factors:
- The various pricing models used by different third-party providers
- The potential savings e-commerce retailers can leverage by outsourcing fulfillment
ShipBob Fulfillment Cost
ShipBob prides itself on offering transparent, straightforward pricing. We charge three types of fees: receiving, storage, and fulfillment — never onboarding fees.
We charge a flat receiving fee for each palletized shipment to our fulfillment center. This fee covers the manpower it takes to unload and store your products safely. For container shipments, we charge a low per-hour rate.
We price our storage fees on a per-bin or per-palette basis. There’s no need to calculate cubic feet covered or follow complicated math to estimate storage fees.
Unlike other fulfillment centers that charge separately for picking and packing, we only charge outbound shipping costs. Outbound shipping costs reflect the discounts ShipBob has negotiated with the four major U.S. carriers. Additional services, such as returns management, packing supplies, and white-label service, are offered at no additional cost. This pricing structure makes ShipBob a significant source of cost savings for merchants with high product turnaround rates.
Overall, outsourcing to a third-party fulfillment provider can reduce your fulfillment costs, improve your customer satisfaction, and free up your time and resources in-house. Working with the right fulfillment provider can help your business:
- Leverage discounted bulk shipping rates.
- Scale and expand into new markets.
- Improve delivery speeds and reduce mis-picks and mis-ships.
- Avoid the need for lengthy warehouse leases or investments in heavy equipment.