Buyers typically pay for fulfillment services through a combination of monthly storage, per-order fees, and handling charges. The main cost drivers include storage duration, order volume, product weight and size, and regional warehouse pricing.
| Item | Low | Average | High | Notes |
|---|---|---|---|---|
| Monthly Storage | $10 | $20 | $40 | Per pallet or per cubic foot depending on SKU and warehouse |
| Fulfillment Fee | $2.50 | $3.50 | $5.80 | Per order, varies with weight and dimensional factors |
| Pick & Pack | $0.25 | $0.75 | $1.50 | Per item or per line item depending on plan |
| Receiving/Inbound | $0 | $0.50 | $1.50 | Per unit or per carton, depending on volume |
| Other Fees | $0 | $0.30 | $2.00 | Sort, returns handling, label printing, etc. |
Assumptions: region, SKU mix, average order value, and monthly storage duration.
Overview Of Costs
Estimated entire project ranges typically span several hundred to several thousand dollars per month, depending on volume and storage needs. For planning, use a combined monthly storage amount plus a per-order fulfillment price to approximate ongoing costs. Below are total project ranges and per-unit ranges with brief assumptions.
Cost Breakdown
Table below mixes total costs with per-unit metrics to show how ShipBob charges scale with volume.
| Component | Low | Average | High | How It Scales | Assumptions |
|---|---|---|---|---|---|
| Storage (Monthly) | $10 | $20 | $40 | Per pallet or per cu ft | Typically 12–24 pallets for a mid-size e-commerce brand |
| Fulfillment Fee | $2.50 | $3.50 | $5.80 | Per order | Varies by order weight and dimensional weight |
| Pick & Pack | $0.25 | $0.75 | $1.50 | Per item | Higher for multi-SKU orders |
| Receiving/Inbound | $0 | $0.50 | $1.50 | Per unit or carton | Incoming volume and carton size affect cost |
| Delivery / Returns Handling | $0 | $0.30 | $2.00 | Per item or per return | Returns frequency influences ongoing costs |
Labor hours and process time are embedded in per-order fees and storage needs.
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Factors That Affect Price
Multiple variables determine final pricing, including SKU characteristics, order density, and warehouse region. Key drivers include SKU size and weight, storage duration, and fulfillment complexity. Regional differences also shift base storage and fulfillment rates.
Regional Price Differences
Prices vary across urban, suburban, and rural markets due to labor and real estate costs. A typical spread can be ±15% to ±25% between regions, affecting both storage and per-order fees.
Real-World Pricing Examples
Three scenario cards illustrate typical outcomes for different volumes and SKUs.
- Basic — 1,000 orders/month, 4 SKUs, average weight 1–2 lb, 8 pallets stored. Fulfillment $3.50 per order, storage $20 per pallet. Est. monthly: $3,500 (fulfillment) + $160 (storage) = ~$3,660. Assumptions: region, low complexity.
- Mid-Range — 5,000 orders/month, 10 SKUs, average weight 2–3 lb, 20 pallets. Fulfillment $3.75 per order, storage $18 per pallet. Est. monthly: $18,750 + $360 = ~$19,110.
- Premium — 15,000 orders/month, 25 SKUs, heavier items, 45 pallets. Fulfillment $4.50 per order, storage $28 per pallet. Est. monthly: $67,500 + $1,260 = ~$68,760.
Assumptions: order mix, SKU spread, and regional costs vary by case.
Pricing Variables
Seasonality can shift volumes and trigger temporary rate adjustments. For example, peak seasons may raise per-order fees or require more storage space.
Ways To Save
To control costs, optimize SKU count, improve packing efficiency, and schedule inbound shipments strategically. Practical approaches include consolidating SKUs, reducing oversized packaging, and leveraging amortized inbound fees with higher monthly storage but lower per-order costs.