Fulfillment Center Shipping Costs: What Should You Be Paying?

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Fulfillment Center

Every business needs to control costs. Companies often choose to outsource fulfillment center shipping services because a third party provider can do the work cheaper. You can offload the headaches and save money, too.

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Maybe. But it’s not necessarily that simple. While curbing expenses matters, it’s important to remember there is more than one type of “cost.” And all of them directly affect your bottom line. So what should you be paying for fulfillment center services? Consider these factors:

1. Beware “standard” pricing

Any company willing to quote you a price over the phone or via an online form does not have your best interests in mind. Or your customers’ best interests at heart. Your company’s fulfillment needs may be similar to others in some ways, but you have unique requirements and challenges when it comes to meeting customer demands. And maybe business-specific issues relating to inventory management.

A list of one-size-fits-all services, no matter how long, cannot possibly address your unique needs. What if you need something that’s not on the list? The only pricing that makes sense is based on your specifics.

2. Do you care about quality? (Hint: your customers do!)

Companies that offer fulfillment center shipping services do not all offer the same level of quality, speed, or accuracy in performing those services. Even if they’re willing to customize your list of services. Some brands also require a higher standard of performance from their fulfillment partner in order to assure their customers have a high touch experience.

An exceptional fulfillment partner can seamlessly flex with your company as sales volumes fluctuate, predicted or not. They can help your company grow and grow along with you. All without sacrificing the kind of attention to detail your customers expect. That will cost more, but we know you’re familiar with the phrase, “You get what you pay for.”

3. Opportunity cost

This is really the cost of lost opportunities. The right fulfillment center partner can do more than store, pack, and ship your products. Their services can reinforce your branding, boost initial and repeat sales and customer loyalty. They can inspire thrilled customers to share their outstanding purchasing experiences far and wide. That’s free marketing that offers distinct, potentially dramatic value when it comes to broadening brand awareness and attracts new customers.

Just-average fulfillment may be cheaper, but you will lose quality and opportunities to impress customers and increase revenue. So how does that math work for your company? If you want to build your bottom line by wowing customers, give us a call. Because that’s priceless.

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