How Much Does UK eCommerce Fulfilment Cost?

Nowadays, eCommerce fulfilment is a crucial aspect of running all kinds of businesses. After all, to grow sales and keep customers satisfied, retailers must ensure that buyers receive their orders without delays. 

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As business owners typically have many things to take care of, many decide to outsource their fulfilment to third-party providers like Bezos. Doing so can help you streamline your operations and cut delivery times. Some assume that fulfilling orders in-house is cheaper, but in reality, you can save money and time by working with a professional. 

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But how much does eCommerce fulfilment cost in the UK? From storage fees, through shipping costs, to the pricing of 3PL companies, several components make up the total cost of fulfilment. In this article, we explore all of them in detail.

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Key points:

• UK eCommerce fulfilment encompasses storing, picking, packing and shipping products to customers.
• The cost of eCommerce fulfilment is the sum of expenses businesses must cover during all stages of order fulfilment.
• The cost of fulfilment is affected by fees associated with receiving inventory, storage and warehousing, packing, shipping and processing returns. 
• Outsourcing fulfilment to a third-party provider can help businesses cut delivery times and costs. 
• Bezos is a full-service fulfilment provider that handles all stages of order fulfilment for eCommerce businesses.

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What is UK eCommerce fulfilment?

UK eCommerce fulfilment refers to everything that happens from when someone orders online to when they receive a package with the item. Paying attention to fulfilment is necessary to deliver parcels to buyers efficiently. Ecommerce fulfilment encompasses the following processes:

Storing

This stage involves keeping products in a warehouse or distribution centre. The storage facility must not only be secure but, depending on the type of products a business sells, it must also have the right temperature. Here, proper inventory management is needed to keep track of stock levels and ensure that the company has enough products to meet the demand.

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Picking

Once a business receives an order, the picking stage is when those working at a warehouse or distribution centre must locate the right products and prepare them for shipment. The goal is to ensure the correct item is sent to the buyer. Picking also involves checking whether the product is in good condition. 

Packing

After the team picks the product, they need to pack it. Depending on the size and material of the item, different packaging, such as boxes or padded envelopes, might be used. Good quality packaging is essential to prevent damage. This step also involves placing shipping labels on the parcel to enable tracking during delivery.

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Shipping

The final stage of eCommerce fulfilment is shipping products to customers. Make sure to select the appropriate shipping method and carrier, as these can affect shipping costs and times. 

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Ecommerce fulfilment cost is the sum of expenses incurred during all of these stages. Keep reading to find out more. 

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Factors that affect the price of fulfilment

Regardless of whether you decide to handle your order fulfilment yourself or outsource it to a third-party provider, there are fulfilment fees you need to cover. Have a look at some of the variables that affect the total fulfilment price in the UK:

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• Receiving inventory. To be able to fulfil orders, you must send an inventory to a warehouse facility. Such costs cover the labour needed to receive and unload the products. They are often charged using hourly rates. 
• Storage and warehousing. Keeping your products in a warehouse is not free. Typically, you need to pay a monthly storage fee. How much you have to pay depends on the type of products you sell and the space you require. Usually, fulfilment providers charge per pallet, which translates to every cubic metre of space taken up. 
• Packing. The materials you use to pack your products affect the price of packing orders. For example, if you wish to use branded packaging, there might be an extra fee. 
• Shipping. Delivery costs are calculated based on factors such as carrier fees, the size and weight of the parcel, and the product’s destination. If you offer international shipping, you might have to pay more than if you only deliver within the UK. 
• Processing returns. Giving customers the option to return products easily is crucial to improve customer satisfaction. Nevertheless, you must pay fees for inspecting items for problems, handling defective products and shipping replacements to buyers. 

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Now that you have a better overview of the main costs associated with UK eCommerce fulfilment, we will explain how outsourcing these activities to a 3PL affects fulfilment prices. 

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Should I fulfil orders in-house or with a 3PL?

Many business owners think that if they fulfil orders themselves, they will reduce costs. If you are one of them, we have to disappoint you. This is not always the case. The biggest advantage of in-house fulfilment is that you have more control over your business operations, and you can set the workflow, monitor its effectiveness and adjust it accordingly. 

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However, to be able to fulfil orders yourself, you need to have the necessary infrastructure, technology and staff. If you do not have these yet, paying for them can end up costing more than outsourcing fulfilment to an expert. Working with a 3PL can provide you with considerable cost savings. Using their advanced technology and automation, you can streamline your operations and save money.

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Working with a 3PL and UK fulfilment prices

As you might be aware, 3PL stands for third-party logistics. These companies help businesses manage their supply chain by taking care of order fulfilment for them. 3PLs provide a wide range of services. 

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Some manage only parts of the fulfilment processes, such as warehousing or inventory management. Others, like Bezos, handle all stages of order fulfilment, from the beginning to the end. On top of that, your 3PL might give you access to data analytics and modern order-tracking platforms to further modernise the procedures and ensure full transparency.

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3PLs have the expertise and resources required to control supply chain operations efficiently. Thanks to their help, business owners do not have to worry about setting up infrastructure and hiring new personnel for logistics management. Instead, they can focus on other core tasks, saving time and effort. 

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The cost of working with a 3PL varies greatly. Firstly, some might charge a set-up fee – a one-off cost of getting on board. The good news is that numerous UK fulfilment providers do not expect you to pay for it. Secondly, some 3PLs charge a fixed rate per unit, while others use a variable pricing model based on the volume of orders processed. Thirdly, the technology used by a 3PL can impact their prices. This is why, when choosing a 3PL company to work with, you need to analyse their pricing model carefully.

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Although hiring a third-party provider requires an investment, it can provide significant cost savings in the long run. And with the right research, you can find the right 3PL partner to match the requirements and budget of your business.

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Bezos’s price of eCommerce fulfilment

At Bezos, we offer affordable prices and make high-quality fulfilment services accessible to small and medium-sized companies. With us, you can benefit from solutions that were previously reserved for large companies with big budgets. 

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We offer transparent prices without any hidden fees. Have a look at our pricing structure:

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• Fulfilment fee from £3.18 for standard delivery, £3.50 for next-day delivery and £6.92 for zero-emissions delivery. This flat fee per order covers delivery, picking of one item per order, and plain packaging using a single wall carton or polybag. Remember that the exact price depends on the parcel's dimensions, delivery speed and the final destination. 
• Storage fee from £3.20 per cubic metre per week. 
• Software subscription from £149 per month.
• Value-added services, which are optional and cover things like returns, additional picks, custom packaging, delivery loss protection and inserts, amongst others. 

Our pricing is highly competitive compared to traditional 3PL providers, especially considering we use AI-powered software. And we do not charge any set-up or integration costs. For more information about our UK fulfilment prices, get a free quote.

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Why hire Bezos for your UK order fulfilment?

At Bezos, we understand the complexities involved in managing your UK order fulfilment processes, and we are here to make the whole process as smooth and straightforward as possible. And the great thing is you do not have to break the bank to work with us! The main benefits of working with us are:

We handle all aspects of the order journey

Unlike many traditional 3PLs, we handle all processes that fall under order fulfilment. We will store your inventory, process your orders, pick and pack products, and finally deliver parcels to buyers efficiently. If you hire us, you will not have to worry about looking for someone else to assist you with certain operations – we will take care of everything! 

We do not set any limits

At Bezos, we do not impose a minimum order volume. This means that you can choose how much stock you send to us. You can also decide how you want to divide the inventory between our warehouses and distribution centres. We are committed to offering honest prices, so you will only pay for what you use regardless of how little or how much you keep in our storage centres. Similarly, we do not impose any limits regarding the products we ship. Do you sell large, heavy or fragile items? No problem – we will deliver them safely! 

We offer multiple delivery options

Did you know you can increase sales by 10-50% by providing multiple delivery options? With us, you can not only give buyers several shipping choices, but you can offer buyers an extended 9 PM cut-off for next-day delivery within the UK!

We offer free integration with sales channels

Some 3PLs charge eCommerce owners for integrating their platforms with common marketplaces. But not us! Bezos integrates with over 30 sales channels, such as eBay, Amazon, Etsy and Squarespace. No matter how many you use to sell your products, you can integrate them with our portal for free. 

We can help you with international shipping

When looking for a fulfilment provider, you might notice that many 3PLs serve few international destinations, but we are proud to have a large international presence. With fulfilment centres in 17 countries, we can help you expand beyond the UK’s borders into international markets. Your items will be dispatched from a fulfilment centre closest to your foreign buyers to ensure they receive their orders promptly. 

We give you access to data analytics

Once you create your Bezos online account, you will gain access to a dashboard allowing you to track all your orders in real-time. You will receive live shipping updates throughout your UK fulfilment process, and you will be notified right away if there are any delays. Our portal uses innovative AI-backed technology, so you can be sure that the data you see is accurate. 

Bezos’s onboarding process

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So you want to work with Bezos and save money on your UK fulfilment? Amazing – all you need to do is complete four easy steps. 

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• Create an online account. To do it, you must complete a form where you enter information about your products.
• Send over your inventory. So that we can take care of your order fulfilment, you must send your stock to our warehouses or fulfilment centres. 
• Integrate sales channels. To ensure we can see all the orders your eCommerce business receives, remember to connect your sales channels.
• Go live. The final step is to relax and let us manage your order fulfilment. 

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The whole process should take a maximum of 72 hours!

Conclusion

There is no single answer to what fulfilment costs in the UK are. How much you will have to budget for order fulfilment depends on several factors, including storage fees, delivery costs and the pricing of third-party companies. 

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As making order fulfilment smooth is essential to the success of an eCommerce business, you should consider outsourcing it to a fulfilment expert like Bezos. Thanks to Bezos’s professional fulfilment services, you can save money, improve customer satisfaction and ultimately see more sales! Speak to an expert today and take your order fulfilment to the next level. 

Frequently Asked Questions

Can I track my orders with a 3PL?

Most fulfilment providers have online portals allowing business owners to track orders. Bezos, for example, gives its clients access to a seller’s portal to get information about order status in real time. Thanks to that, businesses can stay on top of all orders and react if any problems or delays occur. 

What are the benefits of using a UK order fulfilment service?

By outsourcing your UK order fulfilment to a third-party provider, you can ensure that experts with the right infrastructure and knowledge manage your order fulfilment. This way, you can rest assured that your customers receive their products on time and in perfect condition. 

What is a fulfilment centre?

A fulfilment centre, also called a distribution centre, is a facility responsible for storing products that businesses sell online. In addition to storing, fulfilment centres also pack and prepare products for shipment after customers place orders. If you outsource your order fulfilment to a 3PL, you will gain access to their network of fulfilment centres. 

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