{"id":14916,"date":"2023-03-20T06:03:20","date_gmt":"2023-03-20T13:03:20","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=14916"},"modified":"2024-01-02T17:08:37","modified_gmt":"2024-01-03T01:08:37","slug":"reduce-fulfillment-costs","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/reduce-fulfillment-costs\/","title":{"rendered":"6 Ways to Reduce Fulfillment Costs"},"content":{"rendered":"

If you are an ecommerce brand outsourcing fulfillment, you want to make sure you\u2019re not overpaying for any fulfillment services other than what you need. Particularly in a soft market, with less buyer demand, ecommerce businesses need to cut costs to keep a healthy profit margin.\u00a0<\/span>\u00a0<\/span><\/p>\n

But as every successful entrepreneur knows, sometimes you must spend money to make money. This is the case when <\/span>deciding to outsource fulfillment to a 3PL<\/span><\/a> (third-party logistics provider). You often get the service you pay for\u2014hiring a premium 3PL means you won\u2019t suffer lost or damaged products, and you\u2019ll have a higher <\/span>perfect order rate<\/span><\/a>.\u00a0<\/span>\u00a0<\/span><\/p>\n

Brands focused on high growth may not know where to cut costs if they\u2019ve partnered with a premium fulfillment provider, but they\u2019re also worried about losing sales volume. Here are some of the best places to cut fulfillment costs to continue meeting your customer’s needs, but not overpaying in a soft market.\u00a0<\/span>\u00a0<\/span><\/p>\n

How Much Should It Cost to Outsource Fulfillment?<\/span><\/b>\u00a0<\/span><\/p>\n

When <\/span>choosing a fulfillment provider<\/span><\/a>, you want to find a partner who fits your brand needs. Many ecommerce businesses (especially ones first starting out) might choose a 3PL based on low costs. What they don\u2019t realize is that the promise of cost savings can be an illusion.\u00a0<\/span>\u00a0<\/span><\/p>\n

It\u2019s very common for smaller brands to get lured in by a 3PL with basic services and the lowest cost. But within a year, they realize they\u2019ve outgrown the 3PLs capacity for growth. Or worse yet, the 3PL has poor service, loses products, or other fulfillment issues. In the end, you may pay more money and have more issues to resolve with a basic provider than with a premium 3PL with a higher base rate.\u00a0<\/span>\u00a0<\/span><\/p>\n

What are Common Fulfillment Fees?\u00a0<\/span><\/b>\u00a0<\/span><\/p>\n

It\u2019s important to understand <\/span>basic fulfillment costs<\/span><\/a> before you can cut any out.\u00a0<\/span>\u00a0<\/span><\/p>\n

Here are some of the core costs you might pay a 3PL:\u00a0<\/span>\u00a0<\/span><\/p>\n