odc explains: “What are the incurring costs of fulfillment?”

Welche Kosten fallen eigentlich im Fulfillment an?

As a rule, almost all service providers charge certain costs that are incurred with every delivery. Fulfillment can basically be subdivided into four always occurring items.

Goods acceptance. Here, particular attention should be paid on working with barcodes. These ensure that goods can be uniquely identified and therefore, that always the correct goods are stored and thus no goods get lost. In addition, single stock keeping units enable faster storage and are usually accompanied by lower incoming goods costs – because there is no need to manually sort the mixed goods into individual SKUs.

Storage. In this respect, there are several models according to which the logistics service provider may invoice. The fairest solution for all parties is to invoice according to the volume actually stored. Using the geo data of the articles, which are maintained in the shop or ERP system, retailers can calculate their volume and thus the storage costs incur in an extremely transparent manner.

Pick & Pack. In practice, the pick & pack is a process in which numerous expenses may incur. Therefore, it is important to understand which items are included in the pick & pack and which are accordingly invoiced. Among other things, costs could arise for picking, packing, cardboard packaging, filling material, enclosures such as flyers or samples as well as delivery notes or invoices.

Shipment. To ensure that a shipment arrives promptly and intact at the end customer, the one parcel service  meeting all relevant requirements should be selected. For example, depending on the product category, various criteria such as the dimensions or weight of the goods or the expectations of the end customer regarding delivery must be taken into account.

In addition, some service providers offer various special services such as pre-FBA, barcoding or customs clearance. If you have any questions about the processes and services offered by odc, please do not hesitate to contact us.

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