What fees will you pay for order fulfilment?
If you’re thinking about working with a third party ecommerce fulfilment services partner, it’s important that you do your research first before signing on the dotted line. You need to ensure that the package will best suit your business’ needs, and your order fulfilment process can include as few or as many elements as you need. For example, these can include pick and pack services, warehousing, shipping, inventory, and many more besides.
With all that in mind, it’s important to understand that the fees you will pay for fulfilment services will therefore also vary as a result. However, always keep in mind that investing in order fulfilment is crucial to the smooth-running of your operations, and can help to ensure that you provide the best possible service to your customers, so any money you spend is money that will certainly be well spent!
To give you a bit more information and to help you work out if ecommerce order fulfilment is going to be a cost effective option for you, below we’ve taken a look at some of the fees you may incur when you use a third party order fulfilment company – read on to find out more.
Initially when you start working with a third party fulfilment centre, a set-up fee may be charged to help cover the costs of the acquirement of your business. This fee will usually include the initial stock take-on and any costs involved in systems integration. Depending on the size of your operations the fee will vary, but any good fulfilment company should discuss this with you and ensure this is set before you agree to sign any contract.
Order Processing Fees
The second thing to keep in mind is that order processing fees for your order fulfilment services may be a flat amount, or alternatively a charge per item. Also remember that rates may be variable over different months, depending on how much stock you have stored at warehouse facilities as well as the quantity of orders that are shipped out. Here you should ensure that your monthly orders will be more than the required minimum, as if you fail to incur enough orders, you may still be charged a minimum fee.
As a start-up or small business, it’s vital that you choose a fulfilment centre UK that caters for new businesses and one that will not charge monthly fees you cannot afford. After all, if you fail to meet a minimum number of orders, this could seriously impact the success and profitability of your business, something we’re sure you’d be keen to avoid.
If a customer returns a product, and part of your agreement with your third party logistics company is that they will handle returns, then there will be a fee set for the purpose. Having an efficient returns policy is extremely important when building up your business as it will remind the customer that you have their best interests at heart, want to deliver good customer service and are committed to building a relationship with them. No customer will become a repeat customer if you fail to offer a returns policy in the event that a product is faulty, so ensure that a returns process is included as part of your ecommerce order fulfilment process.
As a new business, it is important to find a third party fulfilment company that is flexible and that will grow with your needs. One of the many advantages of outsourcing your fulfilment needs is that you will no longer need to pay for your own warehouse, and you will be able to operate more efficiently as a result. You should only have to pay for the space that you are utilising at any one time, which will help you to save money in the long run.
Other fees that you may be liable to pay to your third party fulfilment centre may include credit card transaction fees, fees for an ecommerce shopping cart, product assembly, and call centre services. When setting up an agreement with an ecommerce order fulfillment company, you should ensure you are aware of any minimum contract clauses.
Moving over to a third party logistics team can be daunting when you are starting out in business. For example, if things slow down for you and your business after the festive period, you need to know that you can cancel your contract with just a month’s notice. Only sign an agreement when you are entirely sure of its contents, and when you are sure of what fees you will be paying and if they will be fixed or variable from month to month – it needs to work in the best interests of your business.
When it comes to the fees you will pay for order fulfilment, you need to work with a reliable fulfilment services partner that will provide an efficient service as well as value for money. At Fulfillment Logistics, we always put our customers first, and work with brands from both the UK and across the world. We have lots of experience in working with ecommerce businesses to ensure that they offer their customers the best possible service for the best possible price – and we’d love to help you too!
If you’re looking to work with a new fulfilment centre UK, then get in touch with our friendly team today to find out how we could help turn your customers into repeat customers. Contact us by emailing firstname.lastname@example.org or calling 0333 2000 881 – we look forward to hearing from you!
Are you an ecommerce business owner who is thinking of working with a third party fulfilment services partner? We’d love to know what you thought of this blog post so make sure you leave a comment below to start the conversation.