What Are the Fees Associated with a Fulfillment House?

best packaging designIf you’re a small business owner overwhelmed by a glut of orders (what a good problem to have!) you may find that choosing a fulfillment house to take care of all your order packaging and shipping could improve your blood pressure and your bottom line. But how much do fulfillment services really cost? What sort of fees should you expect?

We sat down with our fulfillment experts and talked about the fees that may be assessed by the typical fulfillment house. Common fees include:

  • Intake Fees. This fee covers the cost of receiving and sorting any items you have shipped or delivered to the fulfillment warehouse.
  • Storage fees. To cut costs, you’ll want to keep as little product in-house at your fulfillment partner’s warehouse as possible. That’s because there are generally storage fees charged for keeping goods on hand in their warehouse space.
  • Pick and pack fees. Not all fulfillment houses charge these fees, but watch for them. This is the amount charged for the employees to physically retrieve and pack your orders.
  • Shipping fees. Always understand what your shipping fees will be before you get started. These can vary widely depending on the fulfillment house you use. Generally, the more you ship, the bigger your discount, so ask about that.

You should receive a written estimate and contract for services from your fulfillment house long before work begins. Ensure that you have read and understood the terms of the agreement. Know that – just as in any negotiation – some terms may be flexible, and some may not.

At Ohio Valley Goodwill Industries, we strive to create a strong long-term relationship with our fulfillment customers – customers just like you. Small business owners help us fulfill our mission to employee veterans and people with disabilities in our communities. This motivated workforce helps us provide quality, affordable fulfillment services to businesses throughout the Ohio Valley region and beyond. Come visit us and enjoy a free tour of our facilities to see our fulfillment service center for yourself.