Order Fulfillment Costs and Pricing

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COST? Warehousing & Fulfillment What does

Transcript of Order Fulfillment Costs and Pricing

COST?Warehousing & Fulfillment

What does

Our most frequently asked question.While we can’t quote exact charges, we can give you a general idea of the

types of charges that you’ll see should you choose to outsource your fulfillment with a third party provider.

Just like we have a life cycle as human beings, your product goes through a sort of cycle

within the fulfillment world, and each stage represents a potential cost impact or milestone.

We like to think of it as theCIRCLE OF LIFE IN FULFILLMENT.

WHAT CHARGES CAN YOU EXPECT?

INITIAL SET UP Integrating with a fulfillment company. order transfers, etc.

RECEIVINGCan include unloading product, counting, entering it into their inventory system, and locating it in bins or stations.

$100 TO $1,000

+

$35-$40

PER HOUR

STORAGEIs one of the most significant charges. Usually based on space your product uses in their warehouse, and often calculated on avg.

$8-$15PER PALLET

PER MONTH

$2-$8PER

ORDER

FULFILLMENTOr “Pick and Pack”.Gathering items for each customer order.Often a flat fee per order. Sometimes coupled with a feeper item.

Fulfillment companies can oftentimes get better rates

and pass them on to you - up to 5-10%+ off for ground shipping and usually even more for

express. 

Average FULFILLMENT& PALLETSTORAGERATES

As polled by our clients.

$2.84

Average Order Fulfillment Fee per one-item order

$9.62

Average Monthly Pallet Fee

Set Up Fees – Account Set Up and System IntegrationInbound Shipping – Freight or ContainerReceivingStorage and WarehousingPick and Pack and Order FulfillmentBox Fees – Standard or Custom PackagingOrder Insert Fees & Custom LabelingOutbound ShippingReturns FeesKitting FeesAccount Management Fees

BREAKDOWN of All Fulfillment Charges

$500

Discount off of negotiated rates with carriers

$35 /hour OR $450 /container OR $1 /box OR $10 /pallet OR $.25 /item

$10 per pallet or $.35 per cubic foot

$2.50 per item PLUS $.35 per order (discount for higher volume/orders)

$.45 per box (some include this in fulfillment fees)

$.10 per insert OR $.05 per label

Discount off of negotiated rates with carriers

$3.50 per order PLUS $.50 per item

$35 per hour or custom quoted rated per order/item based on time study

$100 per month

An Example Fulfillment Proposal Get a Feel for aMonthly Bill

Set Up FeeInbound Shipping

FeeReceiving

Storage FeeFulfillment Fee

Box Fee Order Inserts

Outbound Shipping Fee

Returns FeeKitting Fee

Account Management