Fulfillment in ecommerce refers to the entire process of receiving, processing, and delivering orders to customers. It includes activities such as inventory management, order picking and packing, shipping, and handling returns.

Outsourcing ecommerce fulfillment offers several benefits:


Cost Efficiency: Reduces overhead costs associated with warehousing and staffing.

Scalability: Easily scale operations during peak seasons without additional investment.

Expertise: Leverages the expertise of fulfillment centers to improve accuracy and speed.

Focus: Allows you to focus on core business activities like marketing and product development.

Fulfillment pricing varies based on factors like order volume, storage requirements, and shipping destinations. Costs typically include:


Receiving Fees: Charges for handling incoming inventory.

Storage Fees: Based on the volume of space your products occupy.

Pick and Pack Fees: Charges for selecting items from inventory and packing them.

Shipping Costs: Varies by carrier, destination, and shipping speed.

Pick and pack fees are charges incurred for selecting items from warehouse inventory (picking) and packaging them for shipment (packing). These fees are often calculated per order or per item.

Often, 3PLs work off of a First Pick and Additional Pick model, where you are charged a base pick fee for the first item in your order, and a discounted additional fee per additional item in the order.

You can use a fulfillment cost calculator (like the one above) to estimate your fulfillment expenses. Input details like:


1. Number of orders per month

2. Average number of items per order

With those details, you can calculate your ecommerce business' fulfillment costs when working with a 3PL. Of course, pick and pack rates can vary depending on your products and requirements, but the calculator above can be used to get a rough idea of what to expect.

Pick and pack rates should be tailored to each business. Every brand is unique, and their pricing should reflect that. Your pick and pack fulfillment costs can be influenced by factors like:


1. Product size - the larger your product, the more difficult it is to pick and move around the fulfillment center. This usually results in a higher pick and pack price.

2. Number of items per order - if you generally have a very high number of items per order, it may lead to a lower cost per individual pick.

3. Special packaging requirements - if your brand requires custom packaging, inserts, custom tape or the items must be packed in a very specific way, you may have higher pick and pack costs.


Pick, pack and fulfillment pricing can be influenced by a number of factors, which is why we offer custom quotes. Contact us today to get a fulfillment quote tailored to your brand today!

Storage fees in fulfillment centers are based on the amount of space your inventory occupies. This is typically measured in cubic feet or by pallet. Rates can vary depending on the duration your products are stored and the season (e.g., higher rates during peak holiday seasons). At 247, we track the space your inventory occupies so you never overpay for storage.

Warehouse bins are storage locations within a fulfillment center where individual products are kept. They help in organizing inventory for easy access and efficient order picking.