How much does direct-to-consumer fulfilment cost?
Don’t think order fulfilment and delivery matter to your eCommerce business? Think again. Over 75% of shoppers note that free delivery has had a significant impact on their purchasing decisions.
However, other studies show that for average eCommerce businesses, eCommerce fulfilment accounts for 70% of the average order value. That’s a lot to spend, and if you're an eCommerce business owner, then you know that keeping your costs down is essential to your success.
But how much does order fulfilment cost in the UK, and what can you do to keep those prices as low as possible?
In this quick guide, we'll take a look at the average fulfilment prices in the UK and offer some tips on how to know which service is right for you as you scale your online operations.
What Is eCommerce Fulfilment?
eCommerce order fulfilment is the process of receiving, packing, and shipping orders placed by customers through an online store.
The process begins when the customer places an order on the website. Once the order is received, it is then processed and prepared for shipping.
Depending on the size and complexity of the order, this can involve picking and packing items, printing shipping labels, and arranging for delivery. Once the order is ready, it is then shipped to the customer's specified address.
Who takes care of this? eCommerce order fulfilment can be carried out by a dedicated team within a company, or it can be outsourced to a third-party logistics provider like Bezos. Outsourcing eCommerce fulfilment is often more efficient and scalable for growing eCommerce businesses.
If you choose to outsource this side of your business logistics and eCommerce fulfilment services then there you’ll want to look for a few things. Namely, you’ll want to ensure that the platform integrates with your eCommerce store. At Bezos we have over 60 integrations available.
Shopify Fulfilment & WooCommerce Fulfilment
Shopify order fulfilment is the process of filling orders placed through Shopify. This can involve several steps, depending on the type of product being ordered and the Shopify plan that is being used. The same goes for the eCommerce platform WooCommerce
In most cases, the platforms will generate a packing slip and shipping label that can be printed out and attached to the package. Once the order has been shipped, the tracking information should be entered into the backend so that the customer can follow its progress.
As you can see, this process involves many steps. By using the right Shopify fulfilment UK integration, you can automate most of this. This includes everything from processing orders to ensuring they arrive to happy clients on time.
Pick and Pack Fulfilment
Pick and pack is slightly different in that in pick and pack order fulfilment, orders are first stored in a central warehouse. Once an order is placed, pickers will go to the warehouse and pick the products from the shelves.
After the products have been picked, they are packed into boxes and shipped to the customer. pick and pack order fulfilment is a popular fulfilment method for small businesses because it is relatively simple and efficient.
However, it can be more expensive than other methods, such as dropshipping, because it requires a larger warehouse and more staff.
Again, if you work with the right third-party logistics provider and they have a large network of international warehouses then this shouldn’t be a problem.
eCommerce Fulfilment UK: How Much Does It Cost?
The cost of eCommerce fulfilment in the UK will vary depending on the size and weight of the order, as well as the distance it needs to be shipped.
For small orders, eCommerce fulfilment UK typically ranges between £4 and £8 per order. However, for larger orders, eCommerce fulfilment UK can cost up to £25 per order. Ultimately, the cost of eCommerce fulfilment UK will depend on the specific needs of your business.
According to average fulfilment numbers across multiple markets, you can expect to pay about £4 to £13 per pallet for receiving costs. The average monthly cost of storage is between £7 to £35. And, pick and pack costs tend to fall between about £4 to £8.
You’ll also need to factor in fees third party logistics software platforms. This is on top of the regular fees such as inbound shipping, inventory receiving, storage and delivery etc. We’ll get into those in just a bit, though.
Calculating Fulfilment Costs
To calculate fulfilment costs in the UK you will need to consider the following:
- Warehouse Receiving
- Storing and managing inventory
- Warehouse picking and packing
- Standard or custom packaging
- Kitting or bundles (if it applies to your product)
- Return management and processing
Namely, you’ll need to ensure you don’t make the mistake that a lot of eCommerce business owners make in assuming that there’s one cost for a simple process.
As you can see, from the labour costs associated with warehouse receiving to the costs of pre-assembling your packages if necessary, there is a lot that goes into these types of logistics services.
Ultimately, the biggest variation will be the cost of automated shipping. This cost can vary greatly depending on the destination of the receiver. If you offer a lot of different products, this can also vary depending on the size and weight of each product.
Fulfilment Pricing Models
What do eCommerce fulfilment models look like? It will depend on the company you chose to work with. However, most platforms break down their fulfilment pricing models into one of the following:
- Total fulfilment costs
- Pick and pack
As the name suggests, when you opt for total fulfilment you’re outsourcing your entire fulfilment process. This ends up being slightly more expensive upfront but if you’re a growing eCommerce business then it pays to have a logistics provider handle everything for you.
Why? Not only does it free you up to focus on other areas of your business such as marketing and product design, but it also helps ensure that your customers have a high satisfaction rate in terms of delivery completion and quality.
Pick and pack pricing models and pick and pack fulfilment services in the UK are best for smaller businesses that are just starting. As you scale, you can scale your fulfilment services.
Get a Quote for eCommerce Fulfilment Services
Regardless of what kind of eCommerce fulfilment you need, Bezos is here to help. From same-day dispatch, 9pm cut-off and dedicated account managers, provide you with the ability to scale your services as you grow, Bezos is one of the most trusted and widely-used fulfilment platforms in the UK today.
Click here to get a custom quote for eCommerce fulfilment services or to speak with a specialist about any questions you might have.