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.
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.
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.
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.
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.
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.
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.
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.
Before signing with a provider, work through our questions to ask a 3PL partner.
No. Storage, receiving, shipping and other charges can offset a lower processing rate. Compare the complete estimate.
No. It depends on your current costs, your requirements and the quote. Include transition costs and any differences in service.
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.
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.