The 7 Types of Fulfilment Fees and How to Spot the Hidden Ones

Costs tied to getting products into the warehouse (receiving, returns, restocking).

Costs tied to shipping orders out (pick & pack, packaging, courier charges).

Costs for activities outside standard flows (stock takes, relabeling, inspections).

Handling and inspection take time—especially if cartons need to be opened and items checked individually.

Flat intake fees or vague “inventory handling” charges with no detail on volume or process.

• Do you charge by carton, pallet, or container?
• Is there a fee for unpacking master cartons?
• How is receiving priced if items need to be checked individually?

Warehouses allocate bin or pallet space and manage replenishment.

“Inventory holding charges” with no breakdown of space used.

• Am I billed by bin, pallet, or cubic meter?
• How are slow-moving SKUs handled?

Each order requires time to locate, pick, and prepare products.

“Fulfilment services” listed as a single charge, with no clarity on what’s included. Some providers charge a flat fee per order without explaining if it covers one item or multiple.

If you already know your order patterns and packaging requirements, share that data with your provider and ask them to show you how those orders would be processed under their system.

For example: How much would an order with three items cost? What happens if packaging changes size? This ensures you understand from the outset how each order type translates into costs, rather than being surprised later. This gives you a practical, scenario-based view of real costs rather than relying on broad estimates.

Different packaging sizes require different amounts of material and time.

Broad “material handling” fees with no breakdown by size or time.

• Can I supply my own packaging?
• Are costs listed by box size?
• How does the time to pack each box size affect my total fees?

Every retailer has unique SOPs depending on their product. For example, a clothing brand might require all returned items to be steamed, inspected for damage, and re-bagged before going back into stock, while a supplement brand may require that any opened container is automatically scrapped. These rules impact the time and cost of returns.

Flat “returns management” fees that don’t account for the specific steps in your SOPs, leading to mismatched expectations and surprise charges.

When discussing returns, ask your provider to explain how they would handle a typical return for your products, step by step, and what each step would cost.

For example: If a customer sends back a sealed product, what happens? If it’s opened, what’s the process? This helps you understand costs at the onset and ensures fees align with your actual policies. By tying costs to your actual return policy, you’ll avoid vague charges and ensure fees reflect your real-world requirements.

These jobs require manual intervention and take staff away from daily flows.

Line items like “manual labor” with no breakdown of activity or time.

• How are special projects billed—hourly or per job?
• Will you provide unique order references that tie activities to costs, so I can reconcile them later?

Couriers pass on operational costs to fulfilment providers.

Generic “surcharge” line items with no detail.

• Do you pass on surcharges at cost, or mark them up?
• Can I see a surcharge table that breaks down the different costs?
• How frequently is this updated?