Outsourcing fulfilment can free up time and space as your online business grows. Before choosing a fulfilment partner, it helps to understand what you’ll be paying for and how to compare quotes fairly.
There is no single standard price for ecommerce fulfilment. Costs depend on your products, order volumes, storage needs and delivery requirements. A useful quote should explain how these factors affect your costs, rather than focus on one headline rate.
Here are the main costs to ask about.
1. Receiving your stock
Before products can be stored and dispatched, the fulfilment provider needs to receive them into the warehouse. Ask how goods-in is charged. It might be based on a delivery, pallet, carton, unit or the time needed to check and book in stock.
If your products need counting, checking, labelling or other preparation on arrival, ask whether that work is included or charged separately.
2. Storage: pay for the volume you actually store
At Target 3PL, storage is charged by the cubic metre (m³) per night. You pay for the volume of stock actually stored, not for empty space on a pallet or shelf. As the volume of your stored stock changes, your storage charge reflects the amount you are using.
When comparing fulfilment quotes, ask whether storage is charged for a fixed pallet, shelf or bin, or by the actual volume stored each night. Also check how the volume is measured.
3. Picking and packing orders
Pick-and-pack charges relate to the work involved in preparing an order. Ask whether the quoted rate covers the first item only, and how additional items, multi-line orders or special packing requirements are charged.
Check the cost of packaging materials too. Standard packaging may be treated differently from branded packaging, gift notes, inserts, bundles or subscription boxes.
4. Delivery
Delivery is often a significant part of the overall fulfilment bill. The rate can depend on the parcel’s weight and dimensions, its destination and the service selected.
Ask which carriers and service levels are available, how tracking is handled, and whether extra charges may apply. These could include charges for oversized parcels or delivery to particular destinations. Compare delivery costs using a realistic mix of your own orders, not just the cheapest possible parcel.
5. Additional services
Your business may need more than storage and standard parcel dispatch. Returns processing, kitting, relabelling, rework or quality checks can affect the total cost.
Ask for each relevant service to be listed separately. This makes it easier to see which services you need now, which you might add later, and what work you could continue to handle yourself.
What affects your fulfilment quote?
To prepare a useful quote, a fulfilment provider needs a clear picture of how your business operates. Helpful details include:
- Your average monthly orders and seasonal peaks
- Your number of products, or SKUs, and stock levels
- The typical number of items in each order
- Product dimensions and weight
- How often stock arrives and how it is packed
- Your packaging or presentation requirements
- The destinations you ship to
- Any returns, kitting or other specialist handling you need
The more accurate this information is, the more useful the quote is likely to be. If your business is still growing, share your current figures and expected near-term growth rather than guessing at a much larger future volume.
How to compare fulfilment quotes
Compare providers using the same order and stock assumptions. A low pick-and-pack rate may not mean a lower overall bill if storage, packaging, receiving or delivery costs are higher.
Before deciding, check:
- What each charge covers and how it is measured
- Whether storage is billed by fixed space or actual volume stored
- Whether there are minimum volumes, monthly fees or contract terms
- How peak-season storage and order volumes are handled
- What happens if your stock or order profile changes
- How you can access inventory and order information
- What it costs to process returns or special requests
- How to end the arrangement and move your stock if needed
Ask for a worked example based on a typical month for your business. It is easier to compare providers when each quote uses the same assumptions.
Is pay-as-you-go fulfilment right for you?
Some businesses prefer a traditional contract. Others want flexibility while they test a product, manage seasonal demand or grow their order volumes.
Target Flex is Target 3PL’s pay-as-you-go fulfilment service, with no minimum volumes or long-term contracts. Find out more about Target Flex.
The right option depends on your products, order pattern and the services you need. Review the full pricing structure and terms before making a decision.
Get a fulfilment quote
To get a quote that fits your business, prepare your order volumes, stock profile, product details and delivery requirements. Ask the provider to explain each charge and flag any assumptions in the quote.
Build a fulfilment quote with Target 3PL or learn more about our warehousing and fulfilment services .