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E-Commerce has seen a massive boost in the last decade, and there are millions of E-Commerce websites operating right now. 

For most of these E-Commerce companies, fulfillment services are an essential step. They often find it challenging to create a shipping and storage infrastructure for their products. However, using a solution like FBA, or using 3PL providers, is a great way to solve this problem. 

When using such a system for our eCommerce company, it is essential to understand their pricing and costs. 

Understanding your FBA bill:

 

FBA costs depend upon factors like the size, weight, and amount of your products, like any fulfillment service. Though the two main costs with FBA are fulfillment and storage, there are some costs that you may not know about. So, here well cover them all

Amazon fulfillment center pricing:

 

●       FBA Fulfillment Fees:

Based on the size, weight, and category of a shipment, Fulfillment fees are charged at a flat rate by FBA. These fees start at 

$2.41 per item for a small order, including pick up, packaging, and shipping with a carrier.

●       FBA Storage Fees:

FBA storage fees are charged monthly on the 7th and 15th. You will be charged 0.69 cents per cubic foot for standard and 0.48 cents per cubic foot for oversized items between January and September. From October to December, you will have to pay $2.40 per cubic foot for standard and $1.20 per cubic foot for oversized items. 

●       FBA Long-Term Inventory Storage Fee:

If your products stay in a warehouse for more than 180 days, you will have to pay long-term inventory storage fees can be $3.45 per cubic foot for items left in storage for 180+ days. Moreover, if the product stays for more than 365 days, you will have to pay $6.90 per cubic foot. 

●       Returns Processing:

You will also be charged an extra fee for returns; this is typically the fulfillment fee+ 20% + the referral fee

●       Inventory Placement fees:

Usually, your products can be placed at different warehouses, however, for an optional Inventory Placement fee, you can have them sent to a single warehouse                                                                                                                

●       Unplanned Service Fees:

If your product does not meet FBA prep standards, you will have to pay a higher rate for fulfillment. 

You can also choose several optional FBA services like repackaging, FBA Prep, or FBA Label services, which will cost you extra. 

Understanding your 3PL bill:

 

For 3PLs, the order fulfillment fees can vary quite a bit. Some services may roll costs together, while others may charge for every movement. Either way, 3PLs have a complex fee structure. 

3PL fulfillment fees: 
         

●       Set up:

This is a one-time fee, which includes charges for integrating software, creating infrastructure, and training. This may be free for some 3PLs. Whereas some can cost up to $1000, but at Prepfort we offer our services without any service fee.

●       Inbound shipping and receiving fees:

The inbound fee covers shipments received from your manufacturer or warehouse. The rates and services can be different, but typically you will be charged per hour, depending on the size of your shipment. Some 3PLs will also charge a flat rate, which can be per order, pallet, or item.

●       Storage and warehousing fees:

Storage fees for most 3PLs depend on the amount of space your products use. Some services may charge per square foot, while others may charge per pallet. At PrepFort, we offer standard sized pallet storage starting at $40/month and standard bin storage starting at $10.

●       Packaging fees:

You will also be charged for the packaging of your products. Some services may add this to the fulfillment fee. Either way, you can expect to pay anywhere from 0.25-$2 per package depending on size and customization.

●       Pick and pack fees:

Some services include this in the fulfillment or packaging fees, but it can also be a standalone charge. Rates can typically be anywhere from 10 cents to $2 or more.

●       Labeling fees:

Additional label printing or FNSKU can cost you anywhere from 30-50 cents but at PrepFort we offer you these services complimentary in our basic plan along with free inspection, labeling, inbound and outbound receiving.  

●       Shipping fees:

Shipping fees can vary, depending on different carriers, package size, and order priority. PrepFort is located within 50-mile of 4 amazon fulfillment centers in Illinois, Midwest which is why we provide you the cheapest shipping fee there is.

Get in touch with us for any and all fulfillment services 

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