Five Ways to Find Out What the Actual Cost of Order Fulfilment Is

Assessing the real cost of fulfilment can identify potential areas for improvement or ways to work with a 3PL provider for fulfilment services. The success of your business depends on your ability to meet customers’ needs for speedy shipping while keeping costs low. 

But, there are often the least obvious costs or those which are hidden that add to the actual order fulfilment charges. Assume that you’re having a hard time meeting buyer demand or getting your item to market quickly. An in-depth look at your fulfilment operation can reveal what your business costs are really like.

Assessing the Real Cost of Order Fulfillment

Abandoned Carts

It is never fun when customers leave suddenly after getting to the checkout, but there are lots of reasons why they leave. The inventory on your site may be wrong, resulting in it being displayed as unavailable at checkout. It is possible that the product could run out since customers are checking out. A huge shipping fee can also lead to cart abandonment. No matter what the cause, you’ve lost immediate profit and damaged your customer relationship as a result of a bad experience. 

Negative Reviews

Reputation is everything to a business online. Any negative review posted on your site or social network is easily passed around and spread to the reviewer’s contacts.

One negative review can put away one prospect out of every ten. Case in point- whether 300 individuals view the negative review, multiply your 

average sale with 30 prospects you lost. It’s possible to cut these expenses by gaining enough good feedback to offset bad feedback and create favourable customer expectations. 

Incorrectly Calculated Shipping Cost 

Among the most erroneously determined costs are shipping fees. This error occurs when you only consider contracted rated charts- this may differ by 3-7%, based on the Cheapest Courier Service in Dubai. 

In addition, suppose you utilise the average cost of your “zone chart” or simply utilise a single zone, then you get an erroneous picture of your shipping charges. A Cheapest Courier Service in Dubai can sometimes 

Pass along reduced bulk outbound freight charges from the carrier to the customer, bringing down the entire shipping charges.

Incorrect Shipment of an Item to a Customer 

Mis-shipments never occur from the part of a company specialising in Cheapest Courier Service in Dubai, however, we do not dwell in a world devoid of mistakes. From time to time, the wrong product is shipped by the Dubai Courier Services company, or the merchandise is shipped with the incorrect shipping label. You are now bearing the costs for the following:

• Actual pick and pack
• A pick-up fee for the replacement
• Replacement for packing
• Fees associated with returning goods
• Checking the returned goods
• Service time for customers
• Additional incentives to delight customers

It can be helpful to outsource fulfilment to a company specialised in Cheapest Courier Service in Dubai as they usually use integrated software to help prevent mis-shipment errors.

Human Error 

We all make mistakes. The bottom line of your business is affected by an excessive number of errors in your fulfilment centre. When picking by hand, it is possible to choose the wrong quantity or the wrong goods. There could be a problem with the labelling or storage of your inventory. Some issues are not having a warehouse map, using inefficient picking routes, not having enough warehousing area, and making the most of workers’ experience for order fulfilment. Through picking process automation, deploying a warehouse management system, or mobile apps to aid in inventory handling and distribution, thus minimising human error.

Analyzing Order Fulfilment Charges 

Fulfilment pricing is comprised of several different components. Charges vary by order and by month. You should be aware of the cost per order when you outsource your order fulfilment. Below are the fulfilment charges that amount to your order fulfilment charges.

Receiving 

Receiving is all about replenishing the fulfilment centre with the inventory. The majority of fulfilment companies collect an intake fee (not every company does). Unloading shipments is not the only charge associated with receiving. Products are placed on shelves upon arrival, after entering into inventory. 

Warehousing 

Warehousing is housing your goods at the fulfilment centre. Your storage fee will depend on the amount of shelf space your goods require. A majority of the warehouses’ levy for storage space per cubic foot. If that’s the case, you need to spend money for storage/month.

Pick and Pac

The act of picking up goods from the shelves to meet customer orders is called “pick and pack.” Pick and pack is typically charged per order. The majority of fulfilment companies levy a fixed price for an order’s first product and then a negligible price for every extra good. As part of the pick and pack charges, you will also be charged for the box in which the product is. When you ship your products in their actual boxes, you will cut costs on packaging.

Shipping 

Fulfilment charges are highest for eCommerce deliveries. There are a number of factors that affect the cost of shipping an order: 

• When you ship using DDU
• The number of shipping zones the package must pass through
• If your products are delicate, special handling may be needed. This can elevate the charges to ship per order.
• Dimensional weight (DIM) fees apply to heavy goods.
• If you are sending singular orders compared to less than truckload shipping.
• Offers on shipping 

Suppose you happen to be a volume shipper, then you can Negotiate volume discounts for freight charges from your carrier. For startups or small-scale sellers who have never dealt with account management fees, or related matters, the 3PL cost can seem expensive. Fulfilment partners will adapt to fluctuations in order volume with ease, and right away when your business thrives or as order volume escalates during busy periods. You won’t be left with limited resources to deal with the holiday craze or too many leftovers subsequently, reducing profits. 

Final Thoughts 

Fulfilment costs are an important aspect of any eCommerce store’s overhead costs. Fulfilment has a great effect on customer experience, business, and bottom line, making it a worthwhile investment. Enhancing efficiency and increasing sales is possible through working with fulfilment companies. There are various and complex related charges, however since each calculation is tailored to each individual, you are just paying for what you want, which is also advantageous to you. 

Cheapest Courier Service in Dubai

DDU Express has become the most chosen Courier Service in Dubai in almost all e-commerce deals with their fairly competitive rates. With the diverse options of shipping and its international shipping model, it is on the top of the game among its competitors. Sellers prefer DDU because of its nationwide coverage and results of exorbitant price rise, which makes them unique.

About DDU Express 

Dubai’s DDU Express is a major Dubai Courier Services provider that specializes in logistics for eCommerce and Shipping From China to UAE. Based in Dubai, the company holds a solid repute in the industry for offering shipping services throughout the country. A noteworthy customer satisfaction rate can be attributed to its low rates. The company offers end to end logistics services, Shipping From China to UAE, warehousing and much more.