Fulfillment pricing: what you pay for and what drives the cost

Two stores with the same number of orders can pay very different amounts. A beauty store ships small single-item parcels, a home appliance store ships large boxes, and a fashion store handles many returns. Each profile loads the warehouse differently, so honest fulfillment pricing starts with your order data, not with one rate for everyone.

The main cost drivers are:

• monthly order volume and how it changes in peak season,
• items per order, because each extra item means extra picking,
• product size and type: fragile, liquid, loose or chilled goods,
• stock on hand, meaning how much pallet and shelf space you use,
• return rate in your category,
• value-added services: kitting, personalized parcels, labelling, shrink wrapping.

The most common mistake is comparing the per-parcel rate alone. A low packing fee means nothing if storage, materials or returns are charged separately and at a higher price. Compare quotes on the same example:

• take a typical month from your store: orders, average items per order and returns,
• ask each provider to price the whole month, not individual rates,
• divide the total by the number of orders: that is your all-in cost per order,
• check what is included: store integration, stock dashboard, account manager, insurance,
• ask about minimum fees and exit terms.

More on what matters beyond price in our guide how to choose a fulfillment company.