Companies looking to enter the ecommerce space have a lot to focus on to make their ventures successful. Finding the right ecommerce fulfillment providers is a crucial step in the process. Sometimes, out of convenience, it is tempting to partner with the most well-known suppliers rather than conduct deeper research to find the best providers for their business. However, convenience can be costly when there is a lack of pricing transparency.
Low storage or per-order rates marketed by certain ecommerce fulfillment vendors look enticing, but what fees are hidden below the surface? Business leaders must make sure they fully understand what fees they might incur. Certainly, they need a clear understanding of how warehousing fees are calculated and what the base fulfillment rates are. However, they also have to be aware of when or why surcharges might apply.
It is important to confirm whether there are additional fees (storage or fulfillment) that apply to products that are bulky or over-sized, or require special handling. This will differ among providers. Online retailers also should find out if they will be charged extra for slow-moving SKU's. This is something charged by suppliers that tend to prioritize quick turnovers over customer experience. Additionally, online retailers should find out what value-added services are available and how much each of them will cost, as their will be variation among providers.
If the ecommerce fulfillment provider offers none of this information upfront, or has it buried in layers of documentation, the online retailer is likely in for an unpleasant pricing surprise at some point. Vendors that clearly outline their pricing structure up front are more valuable to a company's bottom line in the long run. Once online retail business leaders know all the warehousing and fulfillment costs their business is likely to incur, they can conduct an informed pricing evaluation of ecommerce fulfillment suppliers.