Fulfillment quotes are hard to compare because providers structure them differently on purpose. This breakdown covers each cost component, which ones are negotiable, and the fees that turn a cheap-looking rate card into an expensive invoice.
- Pick fees are only part of total landed cost
- Storage is billed by space occupied, not units
- Shipping is usually the largest single line
- Watch minimums, portal fees and removal charges
The core cost components
A standard structure has four parts: a per-order pick fee that includes the first item, an additional-item fee for each further unit, packaging materials, and monthly storage by pallet, shelf or bin. Shipping is passed through at the rate-shopped carrier cost.
Value-added services — kitting, FBA prep, returns processing, special projects — are usually billed per unit or per labor hour. Ask for those rates upfront even if you do not expect to use them yet.
- Per-order pick fee (first item included)
- Additional item fees
- Packaging materials
- Monthly storage by space occupied
- Rate-shopped shipping pass-through
- Value-added services per unit or hour
The fees that are easy to miss
Receiving fees per carton or pallet, integration setup charges, per-seat portal fees, monthly account management retainers, minimum monthly spend, and inventory removal charges on exit all appear in real contracts and rarely on the first-page rate card.
Minimum monthly spend deserves particular attention. It converts a variable cost into a fixed one, which is exactly what you were trying to avoid by outsourcing.
Why shipping dominates the total
For most brands shipping exceeds every other fulfillment line combined, which means a provider's carrier rates matter more than their pick fee. A quote with a low pick fee and retail-level shipping rates is usually the expensive option.
Ask for a modeled comparison on your actual order profile: same orders, same destinations, total landed cost per order. Any competent provider can produce this within a day.
Comparing quotes honestly
Build one spreadsheet with a full month of real order data and ask each provider to price it end to end, including materials and storage at your true inventory level.
Then add the qualitative factors that cost money later: published accuracy, on-time dispatch, receiving turnaround, notice period and exit terms. The cheapest quote with a 2% error rate is not the cheapest quote.