How Much do Fulfilment Centres Cost?

24 June, 2020
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For businesses trying to scale and enter new markets, finding the right partners on your journey to success is essential. Of course, cost is always an important consideration. Whether shipping domestically or cross-border, you want to secure the best service at the lowest price with a range of options that will suit your customers. Having an insight into how fulfilment centres establish their prices is key to understanding the value and level of service you are getting.

Some logistics companies will offer fixed costs which mean the price stays the same each month, or variable costs that are affected by the volume of stock the warehouse holds on your behalf and the number of orders they fulfil.


Initial setup fees

Once you select your order fulfilment partner, various integrations will have to take place; there will likely be a cost for the initial setup.

In most cases, a one-time payment will be required at the start of the relationship, the cost depending on the level of customisation and support you need from your new partner. Your e-commerce platform will have to merge with the order fulfilment software of the warehouse, giving both you and your logistics partner visibility over outgoing orders and stock levels.


Intake fees

One of the draws for businesses when deciding to utilise a fulfilment centre is the handover of inventory management. The fulfilment partner will have to develop a process of receiving your stock from the supplier. A considerable amount of work is involved here; unloading, checking stock, sorting, running a stock take, and updating the online inventory management system takes time and manpower. You'll need to make provisions for these costs in your budget.


Storage

The order fulfilment centre will house your inventory, keeping it safe and secure, ready for dispatch.

The size, shape, and storage requirements of your goods will help to determine the price of storing your items at the order fulfilment centre. It's essential to optimise the space as much as possible by using pallets or storage bins that make picking and packing easy for warehouse operatives.


Pick and pack: fulfilment

As the fulfilment centre receives your orders, in-house teams will locate your products in the warehouse and prepare them for shipping. This usually includes packaging and addressing the parcels. You will have previously agreed on the materials and the type of packaging you would like used for your products. The nature of your goods will largely determine the size and durability of the materials used and therefore also the price.


Shipping

The weight, product size and destination will influence the cost of shipping your goods out to customers. Working with an established fulfilment partner that has access to a network of reliable delivery options is key to getting the most cost-effective solution for your shipping needs.


Extras

The order fulfilment service you choose can be extensive or minimalist. It simply depends on your objectives and budget. Some logistics partners offer account management services, returns processing, and customer support for your buyers. This means, if selling abroad, buyers can contact a third-party helpdesk that will resolve their issues in the language they prefer and understand. These additional services will naturally add to the cost.


At Asendia, we provide accurate, transparent quotes that suit your needs. As established logistics specialists, we have links to some of the best courier networks across the world as well as packaging suppliers that enable us to pass trade discounts onto our customers.

To find out more about our order fulfilment services, get in touch with the team here at Asendia.

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