Fulfillment services and fulfillment costs
One of the biggest challenges for successful e-commerce is the coordinated handling of all logistical processes of e-commerce fulfillment.
Goods have to be stored, packed, picked, shipped and much more.
Well-organised fulfillment logistics play a major role in gaining the trust of potential customers and have an impact on the reputation of the entire company.
However, companies often lack their own time and financial resources or trained personnel.
An optimal solution could be to outsource e-commerce fulfillment to a competent fulfillment service provider.
With the help of a professional fulfillment provider, all logistical processes are handled faster and customers receive their orders on time.
In any case, whether you handle the entire e-commerce fulfillment yourself or decide to hire an external fulfillment partner, one should calculate fulfillment costs first.
Fulfillment costs are the total costs and expenses for all logistical operations.
If you have your own warehouse or rent it, then the fulfillment costs are more fixed.
However, this can become a challenge if, for example, the e-commerce business is not bringing in a lot of revenue and the cost of renting the warehouse remains at the same level.
If you have your e-commerce fulfillment outsourced and you outsource your products to a fulfillment centre, then the fulfillment costs are more variable.
They depend on the scope of the fulfillment service you contract your fulfillment partner with and the goods stored.
Important factors of fulfillment costs in e-commerce
When calculating fulfillment costs, there are certain cost items that need to be considered for accurate calculation. The most important of these include:
Goods have to be stored somewhere. And that costs money. Exactly how much you will pay depends on goods, size and scope.
- Picking and shipping goods
When orders come in, you have to get corresponding items from the warehouse, pick them, pack them and ship them.
Fulfilment costs here fall on labour, packing materials and shipping the goods.
Here again, the expenses depend on the weight, the number of goods and the costs of the shipping services.
Returning orders incurs additional fulfilment costs.
The item must be taken back, inspected and re-stocked or disposed of.
- Additional services
If you would like your fulfillment partner to provide additional services such as advertising, assembling and wrapping gifts, refilling goods, then you will have to expect extra fulfillment costs.
Expenses for additional fulfillment services vary depending on the fulfillment service provider.
In order for all fulfillment processes to function in a coordinated manner, the software system of your online shop and the system of the commissioned fulfilment service provider must match.
The costs here differ depending on the IT services as well as the fulfilment provider.
Our comparison service for quickcalculation of fulfillment costs
If you want to calculate your outsourcing fulfillment costs in advance, but lack the time or find the entire cost calculation too complicated, use our comparison service.
We help you to consider all necessary parameters and compare the costs of your e-commerce fulfillment with different fulfillment service providers.
This is how easy it is to compare fulfillment partners on MyFracht.com:
You fill out the Fulfillment Services Cost Calculation Request Form indicating:
- Desired localisation of your fulfillment service (this can be one country, multiple countries or a region);
- Space requirements for your warehouse;
- Number of shipments per month.
Taking these parameters into account, we analyse fulfillment services and costs from different providers.
You will receive a price comparison of fulfillment centres according to your requirements.
Save a lot of time and effort with our comparison service! With us you get a fast, free and high-quality comparison of fulfillment services according to entered criteria.
Our service also gives you access to the free pallet calculator.
This allows you to easily calculate the optimal utilisation of a pallet.
Thanks to our comparison service, you save time and money!
Contact us for a free, fast and expert comparison of fulfillment costs with various fulfillment service providers that match your criteria.
Fill out the fulfillment service cost calculation request form and choose your ideal fulfillment partner for successful online trading.