The Ultimate Guide To ShipBob Pricing
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Clients who use 3PL applications come from a diverse range of industries and businesses, including eCommerce, wholesale, retail, pharmaceutical samples, and collateral distribution.
ShipBob enables eCommerce businesses to deliver Amazon-level shipping and order fulfilment by combining optimised shipping and logistics, order and inventory management, predictive data and insights, and customer communication. It is an eCommerce fulfilment company that assists you in streamlining your eCommerce shipping processes, from inventory storage and distribution to fast delivery and returns.
ShipBob partners with leading Shopify Plus, Shopify, BigCommerce, Magento, and WooCommerce brands to consistently deliver next-day, same-day shipping, and 2-day shipping options for its shipping methods. ShipBob automates the shipping process using this eCommerce management software and platforms to provide business owners with the best fulfilment services.
Can You Save Money With Fulfillment Centers?
When compared to internally managed operations, a 3PL can provide a lower cost per order.
This is not always true, but it is frequently true for small to medium-sized businesses that do not operate on a four-season basis. The right third-party logistics provider can assist your business in reducing or eliminating capital expenditures on new or upgraded warehouse facilities, order management and warehouse systems, and telephone technology. Labour accounts for more than 50% of total fulfilment costs when internal fulfilment is used.
Regardless of the volume of transactions processed, there is a fixed investment in facilities, material handling and conveyance, and information technology systems. This is not the case when utilising 3PL services. You can anticipate that the cost of transaction processing will fluctuate in response to the volume of transactions processed. As businesses expand, 3PLs can scale up to accommodate additional staff and product storage. This eliminates the time and expense associated with recruiting and training new employees.
ShipBob Pricing: Which Factors Determine The Fulfillment Pricing Costs?
Shipping costs vary according to weight, dimensions, destination, and service.
Each ShipBob pricing quote is customised to your specific requirements, taking into account batchable orders, volume, and other factors. As a result, some manual backend work is required, which becomes more difficult as your customer base grows. As you might imagine, having fulfilment partners that can ship to any location in the U.S. within two days is critical for increasing conversion rates and competing with Amazon.
ShipBob’s Pricing Structure:
Receiving: Flat rate of $25 for the first two hours ($40 per man hour thereafter).
A monthly storage fee of $40 per pallet, $10 per shelf, and $5 per bin
Pick-up and packing are included in the price.
– The first four picks in an order are free; the fifth and subsequent picks are $0.20 each.
Included in a typical packaging for general Shipbob pricing tiers are complimentary plain boxes, mailers, tape, and dunnage for packing orders.
Order-specific – varies according to destination, weight, dimensions, and shipping service, among other factors.
What Is An Order Fulfilment Provider?
While a third-party logistics provider (third-party logistics provider) encompasses a broad range of logistics services and providers, an order fulfilment provider is defined as a business that is responsible for the picking, packing, and shipping of customer orders. Typically, an order fulfilment provider will store goods on behalf of their customers.
Once the order fulfilment provider receives the customer’s order, they will pick the items from their warehouse shelves, pack them into a shipping container, and prepare the orders for pickup by shipping carriers such as FedEx and UPS.
Order fulfilment providers can process a variety of different types of orders; however, in the case of eFulfillment Service, Shipbob primarily works with eCommerce sellers and ships small parcels directly to consumers. Calculating your total cost per order is critical when evaluating order fulfilment companies as an eCommerce seller, as these companies all charge differently.
We have included below the details that several popular order fulfilment pricing models have.
The cost of fulfilment varies depending on the third-party logistics provider with whom you partner and their pricing model, but standard pick and pack fees typically start at around $0.20 per pick. Along with pick and pack fees, there are additional costs to consider when considering the fulfilment process as a whole.
To determine total fulfilment costs (similar to the total Shipbob Pricing), add the following expenses together:
Receiving, storing, and managing inventory for eCommerce
Order picking, packing, and shipping
Kitting out (if applicable)
Management and processing of returns
Total fulfilment cost (ShipBob)
ShipBob’s pricing model is based on the total cost of fulfilment for standard, direct-to-consumer order fulfilment. Rather than adding line items or hidden fees to your invoice, this pricing model simplifies fulfilment costs by charging only for receiving, monthly inventory storage, and shipping. There are no additional costs associated with standard picking and packaging. This straightforward pricing model helps retailers avoid any unexpected fees or costs during the fulfilment process.
Fulfilment by Amazon (FBA) is a unique pricing model for products sold on the Amazon marketplace and fulfilled by Amazon. Amazon can offer discounted fulfilment fees because they receive a cut of each sale, referred to as the seller fee. That said, merchants frequently earn less profit on each sale than they would if they sold on their website.
Sellers also lose the ability to promote their brand when shipping via FBA — all packages are sent in Amazon-branded boxes, and the entire customer experience and communication occurs through Amazon.
Additionally, Amazon charges a fee for long-term storage of inventory that does not sell within a specified period. Amazon FBA costs are complicated, varying according to season, item type and size, and a variety of other factors.
Pick and pack
As the name implies, the pick-and-pack pricing model includes charges for each item selected during the order assembly process. The pick and pack fee is primarily used by businesses to track and charge for each touchpoint in the fulfilment lifecycle of a package.
There is typically a fee of between $0.20 and $5.00 for each individual items depending on the fulfilment centre. When multiple items are shipped in a single order, these fulfilment costs can quickly add up.
Shipping Rates With ShipBob
Pricing is almost certainly the first factor you’ll consider when determining which shipping fulfilment solution to use. Every eCommerce business, regardless of size, must contend with fees. From full-time employees to supply chain logistics, you have a plethora of costs to manage so you must ensure that your fulfilment strategy is financially feasible. At first glance, ShipBob’s pricing structure may appear complex. However, as the brand puts it, the pricing reflects the complete warehouse-to-customer experience.
The standard fees for each service model offered by ShipBob.com are as follows:
Tailored Service For Customers: ShipBob will accommodate your business requirements at no additional cost – regardless of how specialised they may be. ShipBob takes pride in being more than a pick-and-pack warehousing solution. The company’s best-in-class technology enables you to expand rapidly and begin onboarding customers in new locations.
Built-in support: Since ShipBob owns and operates all of its fulfilment services, you can expect excellent customer service if you encounter any issues.
Receiving: $25 for the first two hours, followed by $35 per man-hour for the remaining hours.
A monthly storage fee of $40 per pallet or $10 per shelf. Additionally, bin storage is available for $5 per bin per month.
Pick and pack: This is included in the price for the first five picks in order; the sixth and subsequent picks are $0.20 each.
Standard packing: Included in the box are complimentary plain boxes, tape, mailers, and dunnage. However, you may have to pay an additional fee for additional branding.
Shipping: Based on your order – This will vary depending on the product’s weight, dimensions, and shipping requirements, among other factors.