For a high volume ecommerce business, small differences in fulfillment costs can add up across the month. A useful comparison starts with the complete cost of receiving, storing, packing and shipping your products, along with the service your customers expect.
When reviewing 3PL pricing, ask each provider to quote the same order profile. That makes it easier to understand what is included, what triggers an additional charge and how the arrangement will work during busy periods.
Understand what the quote covers
| Cost category | What to confirm |
|---|---|
| Receiving | How inbound pallets, cartons or units are counted and billed. |
| Storage | The billing unit, measurement period and treatment of extra inventory. |
| Picking and packing | What the base fee includes and charges for additional items. |
| Packaging and assembly | Boxes, mailers, inserts, protective materials and special packing work. |
| Shipping | Carrier service, billable weight and applicable surcharges or adjustments. |
| Account and exception fees | Minimums, setup, returns, special projects and other applicable charges. |
Use your actual order mix
Share a representative order sample showing items per order, product dimensions, packed weights and delivery destinations. Include normal demand and peak periods. A quote for a single item in a standard mailer may tell you little about the cost of shipping a multi-item order in a branded box.
Ask providers to price the same sample and explain their assumptions. Compare the monthly total for the agreed scope, then divide by orders shipped to calculate an average cost per order. Keep one-time transition expenses separate so they remain visible.
Include the effect of packaging
Package size can affect shipping charges as well as material costs. UPS explains that dimensional weight can apply when a parcel is large relative to its weight. Review packed dimensions and the applicable carrier terms before estimating shipping. A change in box size should also be checked for product protection.
Compare a complete order
The example below uses an order containing three items. Both hypothetical quotes include the first item in the base fee and charge separately for two additional items and packaging.
Illustrative figures only. These are not Lincoln Fulfillment rates or market benchmarks. Receiving, storage, shipping, account fees and taxes are excluded.
| Picking and packaging charge | Quote A | Quote B |
|---|---|---|
| Base fee including the first item | $1.20 | $1.60 |
| Two additional items | 2 × $0.40 = $0.80 | 2 × $0.20 = $0.40 |
| Packaging materials | $0.50 | $0.30 |
| Total for this order | $2.50 | $2.30 |
Quote A has a lower base fee, but Quote B is $0.20 lower for this order profile. The difference comes from the additional-item and packaging charges. Receiving, storage and shipping could change the overall comparison, so include them before choosing a provider.
Ask how pricing works when demand changes
- Which charges change during peak periods, and how are those changes communicated?
- Does the agreement include a minimum monthly charge, and which fees count toward it?
- How are returns, inventory counts and unusual packing requests priced?
- What happens to pricing if the order mix, inventory level or volume changes?
Compare service alongside cost
Review order accuracy, inventory visibility, the process for resolving problems and the handling your products require. Ask how performance is measured and who will help when an order needs attention. Clear responsibilities make the quoted scope easier to evaluate.
Warehouse location also deserves a shipment-based review. Compare Tampa and Western New York against your inbound origins and customer destinations, using the same carrier services and package assumptions. Confirm the facility and operating arrangements for your project.
Request a quote built around your business
Lincoln Fulfillment provides ecommerce fulfillment, warehousing and distribution support from Tampa and Western New York. Share your normal and peak order volumes, SKU count, inventory levels, packaging requirements and shipping destinations. We can review your needs and prepare a customized scope and quote. Growing businesses are welcome.
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Reference: UPS guide to package dimensions and weight