Fulfillment center are integral to e-commerce. It is they who take up the maximum load on the part of the manufacturing company to ensure that the orders and the shipments are on time and maintain customer satisfaction that ultimately benefits both of the parties involved– the seller and the buyer. While expenses like inventory storage and initial set-up costs are taken into account before a fulfillment center is hired, factors like order pick and pack costs, box and packaging fees, and custom labeling expenses might get overlooked simply because they are the responsibility of the fulfillment companies and you just have to pay the fees on time. However, these financial aspects must be factored into your budget otherwise it can get tricky to keep up your profits. Let's take a quick look at what these expenses are.
Order Pick and Pack: Once an online order has been placed, the information is sent to the fulfillment center where the online purchase is stored as a part of the inventory. The employees at the third-party logistics center are going to go through the entire inventory to carefully pick up the order, pack them into proper packaging units and then ship them to the buyer’s address. Now order picking and packing are billed separately. Every product in the inventory is shipped through this process and is charged individually.
Packaging Fees: One of the main objectives of fulfillment services is that the inventory does not sustain any damage. This means that unless the orders are packaged properly, they run the risk of getting broken and destroyed. This is why fulfillment companies take utmost care while boxing and packaging each product. Box and packaging fee does not get covered by the expenses for order pick and pack and therefore you must remember to take into account the charges for packaging.
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