Fulfillment services cost is the total price charged for all services offered by a third-party logistics provider, including fees for intake, storage, picking, packing, and shipping. Merchant must know not only how much money a fulfillment service will cost, but also how much money the fulfillment service will save them.
For retailers that are fulfilling a hundred or more orders a month, it is often more cost-effective to outsource the order fulfillment process to a third-party. Providers like ShipBob are designed to maximize the efficiency of the fulfillment process and fulfill high volumes, quickly.
The benefits of outsourcing fulfillment include reducing:
- Shipping costs through bulk discounts negotiated by the logistics provider
- Infrastructure costs by negating the need to invest in warehouse space to store inventory
- Administrative tasks and time spent by employees on fulfillment
- The cost of packaging supplies through bulk discounts from the logistics provider
Instead, you can focus more on growing the business by spending time working on sales, marketing, product development, and customer retention.
When you are comparing fulfillment service costs, there are a few things to keep in mind to make sure you understand all the possible fees that are sometimes hidden or difficult to understand. Find out if you will be charged for anything else, from boxes or using your own branded packaging to international orders and returns. Be sure to factor in any discounts your provider can negotiate for you, such as shipping or packaging discounts.
At the end of the day, make sure you’re comparing the total cost for all of the services that you need, across providers.
ShipBob only charges for three things total.
- When you send us your product
- When it’s stored at one of their warehouses
- When it’s sent out.
That’s it. There are no other fees, hidden or otherwise. See below for a breakdown of what each fee entails.
- Receiving Fee: You are billed for sending ShipBob your product to unpack, categorize, and distribute within the warehouse. It’s a flat fee of $35.
- Storage Costs: You are charged for storage in ShipBob’s warehouses. The fee starts at $5 and goes up based on the volume of your inventory.
- Fulfillment Fee: You are charged for every order that ShipBob ships for you, based on the shipping rates. This cost varies based on the number of orders ShipBob processes for you each month.
More importantly, there are many services that ShipBob won’t charge you for. With a strong belief in keeping pricing simple, you will enjoy:
- No onboarding costs. Unlike other fulfillment centers where these can range from a few hundred to thousands of dollars, onboarding at ShipBob is always free.
- No per-unit fee. With ShipBob, you won’t be charged any per-item storage, per-item picking, or per-item packing fees.
- Free shipping rate comparison. You are always able to get the best shipping rate possible. ShipBob automatically compares their discounted rates across the four major U.S. carriers: FedEx, DHL, USPS, and UPS.
- Free returns management. You won’t be charge a per-item fee for receiving or processing returns.
- Free standard packaging. Use your own boxes (just pay for storage), or take advantage of ShipBob’s free plain brown boxes and packing supplies.
- Free white label service. ShipBob’s name never has to go on the boxes we ship for you. Your brand is front and center.
ShipBob strives to make fulfillment center costs transparent and easy to calculate.
If you’re sick of hidden fees and want to see for yourself, try ShipBob for free today.