There is no single price for ecommerce fulfilment. A 3PL's quote is built from several separate charges, and which of them matter most depends on what you sell, how many orders you send and how long your stock sits on the shelf. A business shipping a few hundred small orders a month will see very different totals from one storing pallets of slow-moving stock, even with the same provider.
Below we set out the charges you are likely to see on a UK fulfilment quote, what drives each one, and how to compare quotes from different providers fairly.
Setup and onboarding
Some providers charge a one-off fee to set up your account, connect your online store and load your products. Others, including TDW Logistics, do not. If a quote includes a setup fee, check what it covers: connecting your sales channels, creating your product records and showing your team the client portal are the usual items.
Goods in
Receiving stock is usually charged per pallet, per carton or per unit, and sometimes by the hour when a delivery needs extra work. Loose-loaded containers cost more to receive than palletised deliveries because they are unloaded by hand. Deliveries that arrive with clear paperwork and barcoded products are quicker, and so cheaper, to book in.
Storage
Storage is charged for the space your stock takes up, measured per pallet, per shelf or bin location, or by volume, and is normally billed weekly or monthly. Slow-selling lines are where storage costs build up, so it is worth reviewing old stock regularly rather than paying to keep it indefinitely.
Pick and pack
Pick and pack is the charge for taking each order off the shelf, checking it and packing it. It is usually a fee per order, often with a smaller charge for each additional item in the same order. Ask whether packaging is included: some providers include standard boxes and mailing bags in the pick and pack fee, while others charge for packaging separately.
Postage
For most online retailers, postage is the largest single cost per order. It depends on the carrier and service, the parcel's size and weight, and where it is going. Next day services cost more than two-day services, and deliveries to Northern Ireland, the Scottish Highlands and international addresses cost more again.
Carriers also add fuel and energy surcharges on top of their base rates, and these change during the year. A good provider will send each order with the most economical service that still meets the delivery promise you have made to your customer.
Returns
Returns are usually charged per item or per parcel received. The fee covers opening the return, checking the item and either putting it back into stock or setting it aside if it is damaged. For clothing brands, where return rates are high, this line can be significant and is worth modelling carefully.
Extra services
Barcoding, labelling, inserts and stock reprocessing are usually priced per unit or by the hour. Wholesale and retailer orders, which often go out on pallets or must meet a retailer's packing rules, are typically quoted separately from parcel orders.
Minimums and contract terms
Some 3PLs charge a monthly minimum, so a quiet month still costs a fixed amount. Others set minimum volumes or require a contract of a set length. Check the notice period and what happens to your stock if you leave. TDW Logistics has no minimum order or storage volume.
How to compare quotes
Quotes are hard to compare line by line because providers measure things differently. The most reliable way is to work out the total cost per order for your own business.
Take a typical month. Add the pick and pack, packaging and postage for your usual order, then add your monthly storage and any fixed fees divided by the number of orders, plus an allowance for returns. Do the same for each quote using the same order profile, and the real differences become clear.
It also helps to ask every provider the same questions: what counts as an item, how storage is measured, which surcharges apply, how quickly orders are dispatched, and how errors and damaged goods are handled.
Getting a quote from TDW Logistics
To quote accurately we need to know what you sell, how many orders you send each month, the average number of items per order, typical parcel sizes and weights, where your customers are, and how much stock you plan to hold. Get in touch and we will put together a quote based on your own figures.