Anyone who owns a webshop and takes care of packaging and shipping packages will sooner or later think about this in depth. Inventory management and the logistics process take up a lot of time. Many webshop owners think that outsourcing inventory management and logistics is a cost without considering the time they invest in the process. Fulfillment is a logical step in the development of your webshop! Partnering with a fulfillment provider offers many advantages.
Take advantage of the benefits of fulfillment!
When you choose a fulfillment partner, you can benefit from economies of scale on shipping rates, boxes, packaging materials, etc. You also gain expertise, as the owner of a webshop is undoubtedly not specialized in inventory management and logistics. On the other hand, a fulfillment partner is specialized in these areas, making the webshop more efficient. Perhaps the greatest benefit is that you get a lot of time to invest in growing your webshop instead of packing orders or checking inventory.
What costs should I expect with fulfillment?
The costs associated with outsourcing logistics can be divided into 3 main categories: inventory management, picking and packing, and shipping. Below we discuss the cost components in detail to give you a transparent view of the actual costs!
Inventory Management
The cost of inventory management depends on various factors. The price is typically calculated based on the number of cubic meters. However, you must also consider the type of storage. Are your products stored on a pallet, shelf, or bin? Each fulfillment partner has its own rates for each storage type.
In certain situations, an additional charge may apply. For example, for the storage of organic products or food items.
Picking and Packing
Picking and packing is typically done by most fulfillment partners using a fixed formula. You will need to account for a fixed startup fee, a cost per order line, and a cost per picked item. After picking, the goods must be packed. Since we work transparently, the prices for packaging materials are provided upfront. This way, you can calculate the package cost more accurately. You will undoubtedly benefit from the economies of scale of the fulfillment partner.
Shipping
Of course, the fulfillment partner will also handle shipping. The shipping costs depend on the desired shipping partner, such as bpost or DPD. If you do not specify a preference, the fulfillment partner will determine the best option per package. The costs vary not only by shipping partner but also by shipping option.
Don’t be misled by the cheapest shipping rate from a particular shipping partner. We always offer a shipping option valid up to 30kg, including home delivery, a required signature, insurance, and a second delivery attempt! This shipping option has a higher cost than a shipment delivered to a post point without a signature or insurance. Webship does not give the cheapest option but the most logical option based on the customer!
Keep the destination country in mind. Since shipping costs vary by country, it is important to have a clear view of the volume sent abroad. Analyze your data so you won’t be caught by surprise!
What is certain is that you can benefit from volume contracts that a fulfillment partner like Webship has with a shipping partner. Thanks to volume contracts, the price per package is reduced! A significant advantage.
Calculate your cost per package (including inventory management)
Webship has developed a calculator that shows the entire cost structure. If you want to know what you’ll pay with Webship, feel free to use the calculator and assess your specific situation. The calculator will account for inventory management in the cost per order. The inventory management costs will be distributed across orders based on the expected orders per month.
Do you have any questions about the composition of fulfillment costs or would you like to receive a quote? Contact Webship at hallo@webship.be.
