How Much Does Fulfillment Cost Per Order?
How much does fulfillment cost per order? We explain the key components of fulfillment costs with tips on how to calculate them here.
If you could do everything in your power to ensure the best relationship with your customers, would you? 74% of customers who took part in a survey said they would abandon their cart if there were high delivery charges.
Fulfilltopia has taken all the measures needed so that they can fulfill your orders, so that you may gain the highest profit you can and create the customer loyalty every business wants.
Every business needs to know how much fulfillment costs per order. Knowing that the fulfillment company that processes your orders is doing everything possible to guarantee that you’re spending only what is necessary for shipping means the best profit possible.
Calculating Order Fulfillment Costs
You’ve worked long and hard to create your business and its online profile. The one thing that ensures a loyal relationship between your business and your customers is the fulfillment order.
A fulfillment order is everything that happens between the customer ordering their package to it being delivered to them. Time and the looks of the package when delivered are important in ensuring that a customer continues to buy from your website. 94% of consumers blame the business and not the shipping company when they’re unsatisfied with the delivery.
It’s important that the company that fulfills your order is charging you the best price possible and ensuring to treat your products respectably to uphold the image of your company.
An onboarding cost is an investment to a fulfillment company to ensure you’re spending what you should be.
This can reduce any frustration in the future when your fulfillment company makes you aware of costs.
Fulfilltopoia offers consultation to ensure you know what you will be spending and what that money goes towards.
There is a fee for the arrival of the product as well as the product being sorted in the warehouse.
The cost for receiving fees can be based on the hour, which should range anywhere from $20-$45.
Pricing can also be based on the inventory intake.
- $30-$50 per order
- $5-$15 per pallet
- $.05-$.15 per piece
- $1 per box
Warehouse expenses can be taking away from your overall profit, and it’s important to compare these prices to make sure that you’re not being overcharged anywhere in your fulfillment charges.
The cost for eCommerce order fulfillment also includes pricing for your product being stored and is dependent on how much is being stored.
- $6-$20 per pallet each month
- $.25-%.55 per cubic foot of space each month
- $.50-$2 per foot of space each month
- $1.00-$2.00 per bin each month
Fulfilltopia’s warehouses are strategically located in Norfolk, and Virginia beach, since 70% of the United States population lives on the East Coast. All warehouses are secure and are temperature controlled to ensure your products are stored in safe conditions. Not only do we offer competitive prices, but the storage facilities themselves are created to ensure the best protection and shipping location for your products.
Pick and Pack Fees
This fee is for your product being found and then packaged for your customer’s orders.
There are also additional charges that can be included in a fulfillment order.
- A fee can not only mean per order but also include a fee per item.
- Cost of packaging materials
- Some fulfillment companies charge for a small box and packaging materials
- There may be an extra charge if the package being shipped goes over a certain weight
The cost of fulfilling orders leaves room for the little charges that you may not be aware of. So it’s important to know exactly what your fulfillment company is charging you to send your products to your customers.
Shipping charges are broken down to include location, speed of delivery, and weight; therefore, there is not a standard shipping cost. When looking at shipping charges for each fulfillment company, there are things to look out for.
For example, some fulfillment companies, if large enough, can get discounts with shipping companies. Also, you may have to use your own shipping account, although some fulfillment companies allow you to use their shipping company or your own
E-commerce is a growing market, and customers are becoming pickier about their online shopping preferences. 53% of customers will abandon their shopping carts if there are too many unexpected charges. Therefore as a business, you need to know all the minor fees you’re being charged, so you don’t have to add any unexpected fees to your customer’s shopping cart.
Fulfilltopia overs fulfillment experts so that you can set up your own sales goals and ensure customer satisfaction. On our E-commerce fulfillment page, you can find out all that we can do to ensure the best fulfillment cost you can afford to ensure the best future for your business.
Hidden Fulfillment Costs to Look for
It’s important to be aware of all costs that can limit your growth.
Hidden Fulfillment Costs
- No Bulk discount– If you’re not shipping a large amount, the fulfillment cost may be higher since you cannot negotiate
- Use of tech– If you’re not properly connected to all of the proper technologies, you can lack automation
- One location of shipment– If you are limited to shipping from one location, you will be forced to pay a higher shipping cost
- Travel time– Trips to the post office are time and money that do not need to be wasted if you use a proper fulfillment company
- Return fees– You have to add a fraction of the cost when considering the return rate with your product
- SKUs– They often include a monthly fee to maintain your stock numbers
The balance of fulfilling your shipping orders is not an easy one to balance. There are frustrating fees in fulfilling your own orders as an online business, and fulfillment companies can also sneak in extra fees without you noticing. You should be aware of what you may be charged for to make the right decisions.
How to Calculate Fulfillment Cost Per Order
The sum of all the warehouse expenses is the fulfillment cost per order. There are multiple jobs that fulfillment companies do for your business that you are charged for.
- Receiving the product, putting it away, and having it stored
- Fulfilling the online orders by picking the product, packaging it, and then shipping it
- It can also include return processing if the customer wishes to send back the order
- The labor involved in shipping the product
When it comes to calculating the cost per order, these are four calculations that can be used to ensure that your funds are best being used for the fulfillment cost per order.
Comparing Costs Per Order
There are things that should be considered when comparing costs per order between different fulfillment companies to be sure that you are fairly comparing prices.
Cost Per Order Comparison
- Make sure you’re always using the same data elements when comparing fulfillment companies
- See how the order cost may differ between businesses because business-to-business transactions can be a higher cost more often
- Labor costs often vary by the hour and should be a focus when looking at fulfillment companies
It’s important to focus on these differences because when you compare companies, there can be wide differentiation. If you are aware of these cost differences, then you can ensure no money goes wasted.
Time is Money
There are tasks that your business may be practicing, which could be done by a fulfillment company. If you’re focusing your time on shipping and product packaging, this could be time spent on developing your company and products to greater heights.
When you hire a fulfillment company, you allow your business to develop a bigger customer base or creating new products to expand your business.
Focusing on shipping is wasted time if you can find a fulfillment company to take care of all the in-between business of your product being shipped to your customers. You should still be aware of long-term contacts. A contract that is long-term can include a risk of losing money if they are not giving good service to your e-commerce website. Focus on your own business’s time first.
A Fulfillment Cost is More than it’s Worth
Creating an online identity for your business takes time and energy. Once you start providing for your online customers, it’s important that your deliveries uphold the ideals of your business. When you understand the best fulfillment cost for your business, you can continue to uphold your business image.
So why would you wait? Fulfilltopia offers you the chance to get a free quote. Get started right now, creating a reliable online business that customers will continue to use.
Don’t let your business be weighed down by fulfillment companies that focus on how much they can charge you and not satisfy your customers. Fulfilltopia is the best future for your business.