Unfortunately, there isn’t just one straight answer to the question “how much does fulfilment cost?” Fulfilment costs can be confusing, and no two companies are the same. Different companies charge varying amounts and calculate their costs in different ways, making it hard to find the right fulfilment option for your business.
We are here to help you sort those issues out in a simple way! Keep reading for a breakdown of all the costings associated with eCommerce fulfilment or hit the "let's talk" button to speak to our team of experts here at SCEND.
So, what is a fulfilment fee?
In short, a fulfilment fee is the price you pay for a third-party company to manage orders on your behalf. Again, each third-party eCommerce fulfilment company is different, and their fulfilment fee may cover differing services, but here at SCEND our fees cover a range of tasks such as:
- Storage
- Picking & packing
- Shipping
What are the different types of fulfilment costs?
There are three types of fulfilment costs, these are:
- Variable
- Fixed
- Pay-as-you-go
Most commonly used, variable fees mean that you will pay for the services you use rather than paying a fixed rate for everything.
Another type of cost associated with fulfilment is a fixed fulfilment price. This means no matter the quantity of orders, costs will remain the same each month. This works well for companies who have a standardised monthly order requirement. However, we find that most businesses prefer the flexibility of a pay-as-you-go service as you’re never paying for a service you didn’t use – making it a more cost-effective solution for up-and-coming DT2 businesses.
Here at SCEND, we use a pay-as-you-go pricing structure. This allows us to break down the barriers which most clients have with costly and confusing payment structures. There is a 100% guarantee of no hidden charges, setup fees or minimum order volumes or minimum terms. Using a pay-as-you-go system has allowed us to remove any fixed costs associated with warehousing and pick, pack and ship services, meaning that you’re never paying for something you haven’t used.
[Please note there are fixed monthly fees even when utilising a pay-as-you-go service – speak to your fulfilment provider for a full breakdown]
Speak to a member of the team about our pricing structure and how it can benefit you!
How to calculate your order fulfilment costs?
Calculating your order fulfilment costs is easy, as long as you know the size, weight and contents of the order you can calculate an approximate cost of fulfilment. However, many businesses offer reduced rates for shipping larger orders, so be sure you contact them to find a breakdown of the costs!
If you are not entirely sure about your requirements just yet that is no problem! You can still get a great idea of the costs involved before you begin.
Fulfilment costs for small and light parcels are incredibly inexpensive which is why fulfilment has become so important to many businesses. For larger items and overseas deliveries, prices are higher.
However due to economies of scale, we’re able to offer competitive costs.
Let’s get into the nitty gritty
At SCEND our fulfilment charges start from as little as £1.20, and we’re also able to send tracked parcels for cheaper than £5.
Surprised by how cheap fulfilment costs can be? It is time you started looking into the options of outsourcing your eCommerce fulfilment! We’re able to help improve your business model by taking over your order management allowing you focus to on what matters most, your customers.
Looking for extra clarity on the exact costs? Speak to the team here at SCEND for a quote we’ll be happy to discuss your fulfilment needs.
Making the right connections for the right reasons.
We know it’s not all about the cost!
You’ve got this far in your process of looking into third-party fulfilment companies, so we know that it isn’t all about the cost. When looking to outsource your fulfilment it is about getting the most for your money from a company you can trust to do the job. At SCEND we pride ourselves on the premium service that we offer to up-and-coming brands – but don’t just take our word for it:
The crew at SCEND are a true extension of our in-house team, they are diligent in their operation and take full control of our UK order fulfilment with ease. More importantly, they help us to facilitate the full customer experience journey, of which is being well received by our UK based consumers. Being an eCommerce business, it is imperative we partner with a team that is flexible to our ever-changing needs and can provide a service with the highest quality and attention to detail.
– Kelly Euripidou, The Fox Tan
