Fair Order Fulfillment Pricing

What’s fair when it comes to order fulfillment pricing? Every company has somewhat different fulfillment needs, so one-size-fits-all menu pricing is inherently unfair. Beyond that, though, what should you pay?

Consider the fact that choosing the right fulfillment partner relieves your company of essential but non-core work – work that diverts valuable time and human resources you could be spending on revenue generation. Product development. Marketing. Your company benefits simply by outsourcing. But you still want to pay a fair price.

Score your fulfillment efforts with a quick, free quiz.

Here are some essential attributes to look for when evaluating whether or not you’re getting fair order fulfillment pricing.

• Your fulfillment company must be capable of meeting your expectations. That should go without saying, but what are your expectations? Industry-average performance metrics are OK for some companies. Others demand consistently exceptional service that upholds their brand reputation.
• Fair-priced service should incorporate the attest order, inventory and warehouse management technology, to streamline communication and assure accuracy. And automation that saves time without sacrificing human customer care touches. Look for redundant systems that keep customer contact and order processing on track and on schedule.
• Does your company have special needs? The price you pay should cover seasonal or promotion-based fluctuations in volumes, advanced warehousing or handling requirements, and fully reliable 24/7 security.
• Attention to detail matters at every step, from order capture to shipping and delivery. Fair pricing should reflect that. Here’s just one example. Any fulfillment company can pick and pack your orders, stuff them into a box, stick on a label and send the package out the door. It’s like a gigantic conveyer belt, automatically flowing forward. But the mindlessness of this approach could be costing you money.

Did you know the price to ship each package can be determined by weight or by total package dimensions? One option may be cheaper than the other. If your fulfillment partner is not using technology that assesses the best option for each package, you’re not getting fair pricing. You’re wasting money.

Now let’s take that “little” example farther. The cost difference on one package may be quite small. But, like dripping water, it adds up faster than you think. How many orders do you average per day? Per month? And when the holidays hit and your sales volume increases by 40%, now how much are you losing? This is supposed to be your profitable season.

So what is fair?

Well, what exactly are you getting for the price you’re paying now? Does your fulfillment center have your back, or are they just charging you a set “price list” fee to do the same job they do for every other company? Here at USA Fulfillment, we’ve developed a simple, short needs assessment you can use to easily rate your current fulfillment program. For many brand and operations managers, it’s a real eye-opener.

Your customers expect to be treated as individuals. Shouldn’t you expect the same customized relationship with your fulfillment center? That seems fair, no matter what the price.

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