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 3rd 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.