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Are you looking for an e-commerce fulfillment partner? If so, you may have questions about the associated costs. Or, you may be wondering the difference between receiving and shipping fees, and why they’re charged separately. Don’t worry– we’ve got you covered.

To help your e-commerce company understand common fulfillment costs, plus why it’s important to choose a partner that provides transparent pricing, continue reading below.

1. Admin Fees 

Some fulfillment partners charge administrative fees. They’ll assign a customer service representative to manage your account. This includes handling customer service calls.

Unfortunately, not every rep takes the time to understand your business, so many times your problems go unresolved. These fees can be recurring depending on how many times you and your customers reach out to customer service with questions.

It's important to note that GLF does not charge admin fees. You will have a dedicated rep assigned to your account that’s knowledgeable about your business, so questions are answered quickly.

2. Set Up Fees

This covers the integration of your company’s e-commerce platform with your partner’s fulfillment software. By integrating the two systems, you can keep track of orders, returns and more. Set up fees are usually charged on a one-time basis.

While most fulfillment companies take three to four weeks to get you set up, GLF can get you fully integrated within 24 to 48 hours. Our proprietary, cloud-based software is completely customizable, and integrates with many CRMs and order management systems. These include:

And since our software is fully customizable, we can create reports based on your needs. 

3. Receiving Fees

Receiving fees cover all the services a fulfillment center provides to process your inventory. This may include:

  • Counting the products.
  • Labeling the products.
  • Placing the products on shelves.
  • Entering the products into your integrated systems.

You’ll pay these fees on an ongoing basis since your partner is constantly receiving products on your behalf.

4. Storage Fees

You’ll also be charged for storing and moving products at your partner’s facility. This includes the people and space needed for:

  • Processing orders.
  • Picking products from shelves.
  • Packing products into the proper packaging, along with promotional materials.
  • Shipping orders.

Some fulfillment partners charge storage fees based on the number of bins and / or pallets your inventory occupies. GLF only charges for pallets, not bins.

5. Fulfillment Fees

If you’re relying on a partner to pick and pack your products, then you can expect fulfillment fees, too. Fees will vary, but you will most likely be charged an hourly rate per number of employees needed to fulfill your products.The more employees, the higher your rate.

Some partners offer bulk rates depending on the number of products. At GLF, we start with a flat fee and go from there.

6. Shipping Fees

Once the order is fulfilled, it needs to be shipped. This makes up one of the largest components of fulfillment costs since the size and weight of the package, as well as the shipping method determines the final price. Depending on the distance between your fulfillment partners’ location and the customers’ final destination, shipping fees may flex up or down.

You’ll want to look for a fulfillment partner with access to a global distribution network, so they can pass the savings on to you. Thanks to our partners, GLF is able to offer turnkey solutions for customers to ship nearly anywhere in the world.

Get Started With GLF for E-Commerce Fulfillment

With 20 years of experience in e-commerce fulfillment, GLF takes pride in offering transparent pricing, unmatched reliability and personalized services. For more information about our fees, contact us today.

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