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The order fulfilment costs

Is 2022 the year you search for the perfect fulfilment provider? You may have already started browsing at what various components of the fulfilment process in the UK will cost and how often that price will incur. It can still be an overwhelming amount of information to comb through - so let's break it down for you.

Cost to set up

For some fulfilment providers in the UK, there are zero set up fees, which is great news if you are an eCommerce company who is just starting to gain traction. However, many 3PL services will have a standard set-up fee that can start at anywhere between the region of £100 - £200; and can go up to as much as £800. 

How much you will be charged to set up with the order fulfilment provider of your choice, is completely dependent on your current set-up situation; which includes your eCommerce website, the size of your business as previously mentioned, and your current order volume.

Storage costs

This is essentially the glue that keeps your order fulfilment costs together. How you ask? Well, storage fees account for the cost of housing your stock within the 3PL warehouse of your choice. Of course, the exact cost of this depends completely on the provider themselves - yet how this cost is calculated is slightly ambiguous, as this is dependent on how much space your inventory takes up your 3PL provider's warehouse.

Sometimes, fulfilment providers will charge you for each pallet; equating to every one cubic metre of space. Alternatively, other providers believe that you should only pay for the actual space that your inventory takes up. This can be defined as charging for each individual item or bin that you use to store your stock.

At fulfilmentcrowd, our storage costs start from £2.50 a week and are based on the cubic space that you use.

Picking and Packing costs

As soon as your orders fly through your fulfilment providers' processing system, warehouse staff immediately get on with selecting the item(s) needed for your customer's order and then bringing it over to the packing team who will pack your order to you exact specification. These processes also involve paying a small fee.

Should you be thinking about switching your fulfilment provider to us, from £0.91 per order via direct debit, we take care of the picking and packing for you.

Shipping costs

Shipping rates are difficult to predict since they are dependent on so many factors, including not only the carrier's fees, but also the size, weight, and type of the goods you're transporting. Although, even if you do outsource your order fulfilment, you can still utilise your own delivery carrier. Though this option provides more transparency and control, some 3PL suppliers are often able to deliver the lowest and fastest shipping.

Ultimately, before you sign a contract with your chosen fulfilment provider, you should shop around and find which carrier offers the cheapest and easiest delivery. 

Return costs

Return fees cover the expense of labour associated with processing any returns. Receiving your returned product, inspecting any damage (if any), and (if possible) preparing it for resale are all part of this process.

When you outsource your fulfilment with us, we handle all returns from £1.20 per item - which includes the receiving, inspection and processing of the returned item in question. 

Remember, it's not all about the costs

Of course, when it comes to choosing the right fulfilment provider for your eCommerce business, how much they charge you throughout the order fulfilment process will be a key consideration for you - but the quality of service and the meeting of your agreed service levels is also of the upmost importance.

You can trust in us at fulfilmentcrowd to provide a hassle-free fulfilment service of the highest quality - and with a 97% same-day dispatch rate last month, you really ought to check us out! 

Are you looking to outsource your fulfilment?

Improve the efficiency eCommerce business while cutting on costs and accelerating growth with us at fulfilmentcrowd

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