How Much Does eCommerce Fulfilment Cost in the UK?

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How much does eCommerce fulfilment cost in the UK?

It sounds like a simple question, but there is rarely a useful single price.

A brand shipping 2,000 lightweight orders a month from a small number of SKUs has a very different fulfilment profile from a retailer holding thousands of products, shipping across several channels and managing retail orders alongside direct-to-consumer parcels.

In simple terms, eCommerce fulfilment costs are normally made up of storage, goods-in, order processing, picking and packing, packaging, delivery, returns and any additional services your operation requires.

The final cost depends on what you sell, how much stock you hold, how customers order, where those orders need to go and what needs to happen inside the warehouse before they leave.

This guide explains how eCommerce fulfilment pricing works, the factors that influence a quote and what brands should compare before choosing a provider.

How is eCommerce fulfilment usually priced?

Most eCommerce fulfilment pricing combines several operational charges rather than one flat fee per parcel. These can include receiving stock, storage, order handling, item picking, packaging, carrier charges, returns and value-added work.

A typical cost model may look like this:

Not every provider structures its charges in exactly the same way. One may bundle the first pick into an order-processing fee, while another separates every activity. Some include standard packaging; others charge packaging separately.

That is why comparing only the headline pick-and-pack rate can be misleading.

1. Goods-in and stock receiving costs

Before products can be fulfilled, they need to enter the warehouse.

Goods-in can involve:

• Receiving deliveries
• Checking quantities
• Booking stock into the warehouse system
• Labelling where required
• Pallet or carton handling
• Quality or product checks
• Putting stock into the correct storage location

A straightforward pallet containing one product will usually require less handling than a mixed delivery containing hundreds of individual SKUs that need to be identified and checked separately.

When comparing fulfilment quotes, ask exactly what is included in the goods-in charge and how unusual or mixed inbound deliveries are handled.

2. Warehouse storage costs

Storage costs depend on how much warehouse space your stock uses and how that stock needs to be stored.

Providers may charge according to:

• Pallet locations
• Shelf or bin locations
• Cubic storage volume
• Product quantity
• Specific storage requirements

Storage costs can therefore change significantly throughout the year.

A retailer building stock ahead of Christmas may require far more warehouse capacity in October than it does in February. Likewise, slow-moving products can continue generating storage costs even when relatively few orders are being placed.

This makes inventory management an important part of the wider cost conversation.

A strong warehouse fulfilment service should help brands understand stock movement as well as simply provide space to store products.

3. Pick and pack costs

Pick and pack is one of the most visible elements of eCommerce fulfilment pricing.

A typical order-processing charge may cover:

• Receiving the order into the warehouse system
• Picking the first product
• Picking additional items
• Checking the order
• Packing it
• Applying shipping labels
• Preparing the parcel for carrier collection

Order complexity matters.

An order containing one product is different from an order containing eight products from different warehouse locations. A subscription box requiring several components to be assembled is different again.

This is why brands should share realistic basket data when requesting a quote, including:

• Average items per order
• Average number of SKUs per order
• Monthly order volume
• Peak order volume
• Product dimensions and weights

The more accurately a fulfilment provider understands the order profile, the more meaningful the quote will be.

4. Packaging costs

Packaging can be included within fulfilment charges or priced separately depending on the provider and the requirements of the brand.

A standard operation may use:

• Mailing bags
• Boxes
• Protective materials
• Tape and labels

More brand-led operations may also require:

• Custom packaging
• Tissue paper
• Printed inserts
• Samples
• Gift notes
• Campaign materials
• Personalisation

Those requirements can add handling as well as material cost, so they need to be included when the fulfilment process is designed.

The cheapest packaging option is not necessarily the most cost-effective overall. Oversized packaging can increase material usage and potentially affect delivery efficiency, while packaging that does not adequately protect a product can contribute to damage and returns.

5. Carrier and delivery costs

For many eCommerce operations, delivery is one of the largest variable costs.

Carrier pricing can depend on:

• Parcel weight
• Parcel dimensions
• Destination
• Delivery speed
• Tracked or signed-for service
• Residential or business delivery
• International destination
• Order volume

A good fulfilment quote should therefore distinguish between the cost of processing the order inside the warehouse and the cost of physically delivering it.

Brands should also ask whether the provider can access multiple carrier services rather than relying on one delivery option for every order.

Different products, destinations and customer promises may require different services.

6. Returns costs

Returns are often overlooked when businesses initially compare fulfilment providers.

But for categories such as fashion, footwear and consumer goods, reverse logistics can represent a substantial part of the operation.

Returns processing may include:

• Receiving the returned parcel
• Identifying the original order
• Inspecting the product
• Recording the return reason
• Repackaging or relabelling
• Returning suitable stock to inventory
• Separating damaged or unsaleable products
• Updating relevant systems

A fulfilment quote should make clear how returns are charged and what level of inspection is included.

A low outbound fulfilment rate can look far less attractive if every returned item generates several additional charges.

7. eCommerce integration costs

Fulfilment technology connects the sale to the warehouse.

For a growing brand, orders should ideally move from its sales channels into the fulfilment operation without teams manually exporting files or re-entering order data.

Depending on the provider and complexity of the setup, there may be costs associated with:

• Initial integration
• Custom API work
• Platform connectors
• ERP integration
• Marketplace connections
• Additional development

Staci supports eCommerce integrations across websites, marketplaces and wider business systems, helping connect orders, stock updates, tracking information and returns data with the fulfilment operation.

When comparing providers, ask whether the proposed integration is already supported, whether any custom development is required and whether there are ongoing technology charges after launch.

8. Value-added service costs

Many brands need more than standard storage, pick and pack.

Value-added fulfilment can include:

• Kitting
• Bundling
• Assembly
• Relabelling
• Repacking
• Gift wrapping
• Personalisation
• Promotional inserts
• Subscription-box preparation
• Quality checks
• Campaign fulfilment

These activities usually require additional labour, processes or materials and should be identified during the quotation stage rather than added as unexpected costs later.

What affects the cost of eCommerce fulfilment most?

The biggest cost drivers are normally the amount of stock being held, the number and complexity of orders being processed, the amount of handling each order requires and the delivery service used.

Does higher order volume make fulfilment cheaper?

Higher order volume can improve the economics of outsourced fulfilment, but volume alone does not determine cost.

A large volume of simple single-item orders can be very efficient to process. A smaller number of complicated orders involving multiple items, personalisation or assembly may require considerably more warehouse activity.

This is why providers need to understand both volume and complexity.

When asking for a quote, provide average figures as well as peak volumes. A business processing 5,000 orders in a normal month but 20,000 during November has a different capacity requirement from one consistently processing 6,000 orders throughout the year.

How much does pick and pack cost?

There is no universal UK pick-and-pack rate because providers structure their charges differently and every operation has a different order profile.

A useful quote should explain:

• Whether there is an order-processing fee
• Whether the first item is included
• How additional items are charged
• Whether standard packaging is included
• Whether carrier charges are separate
• How returns are priced
• Whether there are minimum monthly charges

If a provider advertises a single headline price, ask what that rate actually includes before using it as the basis for comparison.

Is eCommerce fulfilment cheaper than fulfilling orders in-house?

Outsourcing is not automatically cheaper than in-house fulfilment, but comparing the two requires looking at the full operational cost rather than warehouse labour alone.

An in-house operation may need to fund:

• Warehouse rent
• Business rates and utilities
• Warehouse staff
• Recruitment and training
• Management resource
• Warehouse systems
• Equipment
• Packaging stock
• Carrier contracts
• Peak labour
• Returns processing
• Additional space as the business grows

There is also the opportunity cost of internal teams spending time managing logistics rather than product, sales, marketing or customer growth.

A meaningful comparison should therefore calculate the total cost per fulfilled order, not just compare an outsourced pick fee with an internal hourly wage.

Does B2B fulfilment cost the same as eCommerce fulfilment?

No. B2B and direct-to-consumer orders often require different processes.

A consumer order might involve one or two products packed into a parcel.

A B2B order may require:

• Carton or pallet picking
• Retailer-specific labels
• Delivery bookings
• Documentation
• Pallet preparation
• Customer-specific rules
• Wholesale quantities

For brands selling through both channels, the right multichannel fulfilment model should account for those differences while allowing stock to be managed through one connected operation.

What about Shopify fulfilment costs?

Shopify does not fundamentally change the physical cost of storing, picking and shipping a product. What matters is how efficiently the store connects with the fulfilment operation.

A Shopify fulfilment service should connect:

• Orders
• Inventory updates
• Fulfilment status
• Tracking information
• Returns data

The main question to ask is whether a standard Shopify connection is already available or whether your particular setup requires additional integration work.

How does international fulfilment affect costs?

International eCommerce introduces additional variables.

These may include:

• Longer carrier routes
• Different parcel rates
• Customs requirements
• Import and export processes
• Returns moving across borders
• Different service expectations by market

As international demand grows, businesses should consider whether continuing to ship every order from one UK warehouse remains the right operational model.

A wider 3PL network can provide more options as order volumes and markets change.

What hidden fulfilment costs should you look for?

Not every additional charge is unreasonable. Many simply reflect real operational work. The important thing is understanding them before signing an agreement.

Ask prospective providers about:

• Minimum monthly charges
• Account-management fees
• Implementation fees
• Integration charges
• Peak surcharges
• Long-term storage charges
• Stock-count fees
• Packaging materials
• Additional picks
• Returns inspection
• Relabelling and rework
• Carrier surcharges
• Contract termination or stock-removal charges

A detailed quotation is more useful than a low headline price followed by a long list of operational extras.

How should you compare eCommerce fulfilment quotes?

Do not compare suppliers using one line from each price list.

Create the same realistic monthly scenario for every provider.

For example, give each company:

• The same monthly order volume
• The same average basket size
• The same SKU count
• The same storage requirement
• The same delivery mix
• The same returns volume
• The same packaging requirements
• The same seasonal peak assumptions

Then compare the estimated total monthly cost and cost per order.

What information does a fulfilment provider need to give you an accurate quote?

The quality of a fulfilment quote depends heavily on the quality of the information supplied.

Be prepared to share:

1. Average monthly order volume
2. Peak monthly order volume
3. Number of active SKUs
4. Average units per order
5. Product dimensions and weights
6. Number of pallets or volume of stock held
7. Sales channels
8. Average returns rate
9. Packaging requirements
10. Delivery destinations
11. Required carrier services
12. Any kitting, assembly or value-added work
13. Systems and eCommerce platforms
14. Expected growth over the next 12 to 24 months

A provider that understands those details can design the operation around the business rather than pricing an unrealistic generic model.

How does Staci price eCommerce fulfilment?

Staci builds fulfilment solutions around the requirements of the individual operation rather than applying one standard package to every brand.

The appropriate model depends on factors such as products, inventory profile, order volumes, sales channels, integrations, packaging, returns and distribution requirements.

Staci’s eCommerce fulfilment services can bring together warehousing, pick and pack, dispatch, returns and channel support, while its broader 3PL services can support brands requiring a wider outsourced logistics operation.

For businesses operating across eCommerce, marketplaces, retail and B2B channels, the solution can also connect with Staci’s multichannel fulfilment and integration capabilities.

Staci is becoming Paxon

As Staci becomes Paxon, brands will have access to a broader connected 3PL proposition designed to support increasingly complex fulfilment requirements across markets and channels.

For growing eCommerce businesses, this means the fulfilment conversation does not have to stop at today’s storage and parcel requirements. The wider network can support brands as volumes, markets and routes to customer evolve.

Is outsourced fulfilment worth the cost?

The answer depends on what the business needs from its operation.

If the only objective is to find the cheapest possible pick fee, a fulfilment partnership may be judged purely as a cost.

But for a growing retailer, the wider value can include:

• Removing the need to operate its own warehouse
• Accessing established fulfilment infrastructure
• Reducing manual order processing
• Connecting more sales channels
• Improving stock visibility
• Adding capacity for peak
• Supporting returns more effectively
• Entering new markets without building a logistics operation from scratch

The useful question is therefore not simply:

“How much does fulfilment cost?”

It is:

“What will this fulfilment model cost, what does that price include and will it support the business as we grow?”

eCommerce fulfilment cost FAQs

How much does eCommerce fulfilment cost in the UK?

There is no single standard price. UK eCommerce fulfilment costs normally combine storage, goods-in, order processing, pick and pack, packaging, carrier charges, returns and any additional services. The final cost depends on order volume, SKU count, stock profile, product dimensions, delivery requirements and operational complexity.

What is included in an eCommerce fulfilment fee?

It depends on the provider. A fulfilment fee may include order processing, a first item pick and packing, while storage, additional item picks, packaging, shipping, returns and value-added work may be charged separately. Always ask for a complete breakdown.

How much does pick and pack cost?

There is no universal pick-and-pack rate because order profiles differ and providers structure charges differently. The number of items per order, product type, packaging requirements and monthly volume can all influence the cost.

Is outsourced fulfilment cheaper than doing it in-house?

It can be, but the comparison should include the full cost of operating an internal warehouse, including rent, staff, systems, equipment, packaging, management, carriers, peak labour and returns. Comparing only an outsourced pick fee with internal labour does not show the full picture.

Does eCommerce fulfilment get cheaper as order volumes increase?

Higher volumes can improve operational efficiency, but cost also depends on order complexity. Large volumes of simple single-item orders can be efficient to fulfil, while smaller volumes of complex multi-item or personalised orders can require more handling.

Are delivery charges included in fulfilment costs?

Carrier charges are often quoted separately from warehouse fulfilment charges. Delivery costs can vary according to parcel weight, dimensions, destination and service level, so brands should confirm exactly what is included in each quote.

Do fulfilment companies charge for returns?

Usually, yes. Returns can require receiving, inspection, reporting, repackaging, relabelling and returning suitable products to inventory. Providers may charge differently depending on the level of processing required.

Are Shopify fulfilment costs different?

The physical warehouse costs are based on the same factors as other eCommerce orders. However, brands should check whether their fulfilment provider charges for Shopify integration, implementation or any custom development required to connect the store.

What information do I need for an eCommerce fulfilment quote?

Providers will normally need monthly and peak order volumes, SKU count, units per order, product dimensions, stock holding, returns volume, sales channels, packaging requirements, delivery profile and systems information to build an accurate quotation.

What is the best way to compare 3PL pricing?

Give each provider the same realistic order, storage, returns and delivery scenario and compare the estimated total monthly cost rather than individual line-item rates. Also compare what is included, service capability, integrations, scalability and how the provider will support future growth.

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