UK fulfilment costs: compare the whole monthly bill
FULFILMENT SCOUT · PRACTICAL GUIDES
Fulfilment costs are usually made up of several charges. To compare providers fairly, price the same month of orders and inventory with each one, then check what happens in a quieter month and during a peak.
Use the checks below to compare what providers will actually do for your business.
Build the cost from the actual activity
A useful model is receiving + storage + picking and packing + packaging + delivery + returns + agreed extras. Check whether the first item is included in the order charge and how additional units, bundles and inserts are counted. Some providers use different charging structures, so convert each quote into a total for the same activity.
A worked example, not a market price
Imagine 1,000 orders with 1.5 items per order. At an illustrative £1 first-item charge and £0.25 for each additional item, picking totals £1,125: £1,000 for orders plus £125 for 500 extra items. Add illustrative packaging of £0.30 per order, £120 storage, £80 receiving and £100 returns: £1,725 before delivery, VAT and any other agreed charges. These invented figures demonstrate the calculation only; they are not a Fulfilment Scout or provider quote.
Storage needs its own assumptions
Ask whether storage is billed by pallet, shelf, bin or cubic volume, and whether the calculation uses daily occupancy, a weekly snapshot or another method. Include slow-moving stock, empty packaging and stock awaiting checks. A small product range with deep stock can have a different storage cost from many SKUs with only a few units each.
Check postage separately
Match destination, weight, packed dimensions and service level. Ask about fuel, remote-area, oversize, failed-delivery and return-to-sender charges where applicable. If you use your own courier account, confirm whether handling, label production or collection charges still apply. A picking comparison should not be distorted by different delivery services.
Stress-test the quote before deciding
Calculate three months: your expected month, a low-sales month and a promotion month. Apply any minimum charge exactly as described, including whether it replaces or sits alongside activity charges. Ask for a sample invoice and written explanations of anything you cannot reproduce. The useful figure is a transparent total for your operation, not a universal cost per parcel.