What do Fulfillment Services Charge for their Services?

Fulfillment Services, what do they Charge?

No doubt business owners will want to know that the money they pay for fulfillment services is cost-effective and worthwhile. Since every business owner is different and has specialized needs for their customers, consider this formula to see where your business might fit in: (Keep in mind that this percentage should typically be between 10% and 15% of the average transaction)

The total cost per order of fulfillment (including the actual packaging; packing peanuts; labor; receipts, invoices, and other paperwork; the cost of warehouse storage; and the account management) is about $5.00. Unfortunately, the cost of shipping through UPS, FedEx and USPS is continually on the rise, so we can assume approximately $5.50 per package. Already, the cost to get your customer their product is at $10.50.

Likely, you probably only charged about $5.00 to your customer for these processing and handling fees. Still, your net cost is over $5. The average price of an order is about $50.00, so the percentage cost of your fulfillment is about 11%. That’s a rather reasonable percentage offered by an order fulfillment services company.

How does Fulfillment Services Information Benefit You?

It is always possible to get a “dirt cheap” provider, but like anything else in life, you get what you pay for. Your business could suffer greatly if your fulfillment service responsibilities are placed in the wrong hands. You don’t want your products packaged haphazardly and then shipped to your customers whenever it becomes convenient. Your business reputation will plummet if customers see this happening. Thus, you want to consider all options before choosing fulfillment services and not just worry about the cost. Since customer satisfaction is most important, make sure that the services AND the price are effective options for your retail business.

DON’T LET YOUR BUSINESS SUFFER BECAUSE YOU DIDN’T UTILIZE FULFILLMENT SERVICES.

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