A decisive factor when choosing a fulfillment solution is, of course, the costs and prices of interesting partners. There are big differences already in the initial approach of pricing. To help you understand how to get the most out of outsourcing your fulfillment in regards to costs, we created an overview of the costs incurred and any differences in the billing approach. The following section relates to pricing and resources needed when outsourcing your fulfillment:
Setup and Connection of the Online Shop
The connection of your online shop-system to the fulfillment service provider is an effort. If you use one of the leading store systems like Shopify, WooCommerce, Shopware, or similar, the integration is done quickly. However, connecting via API interfaces to some ERP systems could take longer. Some 3PL companies do not charge for the setup, others do.
Many fulfillment service providers today rely on logistics software that can be used by retailers to manage fulfillment. The operation and maintenance of this modern fulfillment software also incur costs. Not least, for this reason, most order fulfillment companies charge minimum fees to cover their costs. There are usually no charges for the software itself.
Costs for Receiving and Counting of the Products
When receiving products at the warehouse, e-commerce companies can optionally request the goods to be counted. This, like anything that requires warehouse staff time, results in costs that are passed on to the customer.
The next step is to store your products on pallets or on shelves. This also makes a difference in price, with the latter being the cheaper alternative. Furthermore, the number of SKUs and the size or weight of your products play a role in the pricing. By the way, some fulfillment companies charge by storage space, while others charge by the cubic meter. The storage costs are charged monthly and thus form something like the fixed prices.
Once again, the cost depends on the nature of your products and there are again different approaches to pricing. Usually, there is a certain base price per shipment plus costs per product that is enclosed.
Packing costs consist of the labor involved in the packing process, the cost of materials, and costs for the custom branding option. Note that you will usually incur additional costs for custom branding options (sticking stickers, using special packaging materials, etc.). However, there are additional ways to reduce your packaging costs.
Costs for Shipping
The most obvious costs are directly related to shipping. These depend on the type of shipping (standard, climate neutral, express), the shipping service provider (DHL, DPD, etc.), and the shipping address (e.g. Germany, UK, etc.).
Prices for Returns Management
E-commerce companies also incur additional charges for returns management. These include quality control, restocking of returned products, and disposal of products and packaging materials.
The last service we would like to list here is customer support. In some 3PL companies, such as byrd, this is not charged separately.
In summary, the cost depends on the type of products, the number of SKUs, and the logistics partners. If you are interested in the prices of byrd, do not hesitate to visit our website