To find out whether you’re overpaying for fulfilment, look beyond the price of sending a parcel. Unused storage, extra handling, slow-moving stock and overlooked overheads can all push up the total.
You don’t need to cut corners to get a clearer picture. You need to know what you’re paying for, what you’re using and where the two don’t match.
Start with these seven areas.
1. Storage you don’t need
Empty warehouse space still costs money when you’re paying for the whole building. With outsourced fulfilment, stock that sits too long can keep adding to your storage bill.
Check: how much space you use, how storage is charged and whether your stock levels reflect demand.
2. Picking and packing that takes too long
The cost of processing an order includes more than the time spent putting it in a box. Long walks between locations, poor stock records and repeated checks can all add work.
Check: the full cost of your warehouse labour and supervision. If you use a 3PL, check how additional items, bundles and special packing are charged.
3. Goods-in charges you haven’t allowed for
Stock has to be unloaded, checked and put away before anyone can pick it. Those activities may be charged separately, especially when deliveries need extra preparation.
Check: how your stock arrives and what receiving includes. Ask about labelling, stock discrepancies and deliveries that need extra handling.
4. Stock that isn’t selling
Slow-moving products tie up cash and space. Moving them to another warehouse won’t solve the underlying problem.
Check: which lines have been sitting longest. Review your purchasing, replenishment and clearance plans before paying to store more of the same.
5. Returns with no clear process
A return can involve receiving, inspection, repacking, restocking or disposal. If the process is unclear, products can sit waiting for a decision.
Check: your returns volume, the work each return needs and which activities appear on your bill.
6. Staffing and management overheads
Recruitment, training, holiday cover and supervision all belong in an in-house fulfilment cost review. So does the time you spend sorting out warehouse problems.
Check: whether you’re comparing a complete internal cost with a complete outsourced quote. Leaving out overheads makes the comparison less useful.
7. Technology and integration fees
Your store, marketplaces and warehouse systems need to work together. Setup fees, ongoing software charges and custom connections can all affect the total.
Check: what’s included, which systems are covered and whether changes to your setup bring extra charges.
Turn the review into a fair comparison
- Pick a trading period. Use the same period for costs and order volumes.
- Gather the full bill. Include storage, labour, packaging, shipping, returns, technology and relevant overheads.
- Record what you need. Note orders, items per order, stock held, inbound deliveries and returns.
- Compare like for like. Keep service levels, delivery options and handling requirements consistent.
Before signing with a provider, work through our questions to ask a 3PL partner.
Common questions about fulfilment costs
Does a cheaper pick-and-pack rate mean a smaller bill?
No. Storage, receiving, shipping and other charges can offset a lower processing rate. Compare the complete estimate.
Will outsourcing always save money?
No. It depends on your current costs, your requirements and the quote. Include transition costs and any differences in service.
Where should I start if I don’t know my cost per order?
Add the relevant fulfilment costs for a trading period and divide by the orders fulfilled. Keep a note of what you included so you can make a consistent comparison later.
See what your fulfilment could cost
GNOC’s free calculator gives you a starting estimate using your own business details. Use it to prepare for a conversation about the services you need.
Try the free fulfilment calculator
Want a broader view of what shapes a quote? Read our UK ecommerce fulfilment cost guide.