An Insight Into eCommerce Fulfimment Companies Expenses

With growing number of eCommerce companies, the demand for eCommerce fulfillment companies has also increased to a significant extent. These companies not only take care of the supply and distribution end of the business but also shoulders maximum load of a business. These companies are geared to ensure timely deliveries of orders and shipments and customer satisfaction. As a result, both the sellers and buyers get benefitted. There are n number of expenses sustained by the fulfillment centers, from initial set-up costs to inventory storage and invoicing. There are many other costs that should be kept in mind. Considering these costs helps in finalizing the budget.

Let us have a look at some of them. 

Pick Up Order and Packing- After the order is placed online, the order fulfillment centers in India receives the information. They pick up the order from the warehouse where it is stored as inventory. The employees go through the inventory carefully, pick up the right order, and pack them properly before shipping them to the buyer’s address. Both picking up the order and packing are two separate services and billed separately. The entire process is followed every time and individually charged.

Packing Fee. It is pertinent to understand that one of the major aims of 3^rd party logistics companies are to ensure no damage comes to the inventory stored with them in the warehouse. This is possible only when every package is carefully packed so as to avoid the risk of damage to the order. Thus, the task of these companies is cut out for them and they separately charge for boxing and packaging every unit. Packaging charges depends on product material and fragility.

These expenses must also be considered when finalizing the budget approved for outsourcing this task to a fulfillment center.