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Do Fulfillment Companies Offer Discount When The Order Volume Increases?

ShipHack | 3PL Warehouse & Fulfillment Center in New Jersey > Fulfillment > Do Fulfillment Companies Offer Discount When The Order Volume Increases?

Fulfillment services companies have become an area frequently preferred by companies today. People who want to use these systems want to answer some questions. At the top of these questions is whether they will get any discount or not. 

If these companies offer a discount, how and when are these discounts applied? We will answer this question in detail in our article.

Which Companies Provide Exactly These Discounts?

Since there are so many companies working in this field, it is impossible to say how many companies offer discounts and at what levels. 

As a result of our research, we know that many companies offer certain levels of discounts. 76% of people working with fulfillment companies benefit from these discounts. Companies that receive more than 2,000 orders per month on average can benefit from these discounts. 

This figure may be 5,000 orders in some companies. How much discount can you provide? It will vary depending on the company you work for, but the average figure varies between 3% and 10%. 

As Shiphack.co, we want to say that our pricing is in the form of a package. The things included in this package are as follows; Packaging, receiving, shipping.

Why Do Fulfillment Companies Offer Discounts Over A Certain Number?

Fulfillment companies survive by taking a particular share from orders. The only way they can make a profit is to take more than a certain number of orders, so they can only offer you a discount when the number of orders increases.

The only way for fulfillment companies to negotiate is to take large numbers of orders. The more profits it makes allows companies to grow and become better quality. As a result, they can offer discounts to their customers.

What Do Fulfillment Companies Expect In Return For Discounts?

Fulfillment companies often wait for the number they have set to offer discounts. Reaching the determined number both improves their business and helps them to make a profit. 

Regular work provides positive returns for the company. In some periods, companies may be in better condition than usual. During these periods they may offer their customers discounts even if they do not reach a certain number. However, most companies wait for the desired number to be reached.

Another issue required to give discounted prices is contracted. Like every company, fulfillment companies want to secure themselves and demand a contract in return for a discount. These contracts can be made for one or several years. We want to say that you should read these conventions very carefully. 

Shiphack.co does not require contracts to save you from these troubles! You can cancel your agreement with us at any time.

What Other Fees Do The Fulfillment Services Companies Charge?

The working principle of Fulfillment companies is based on charging per order. However, this is not as simple as said because you need to pay attention to the other fees below.

  • Receiving fee 
  • Storage fee 
  • Order fulfillment fee 
  • Shipping fee 
  • Returns fee 
  • Kitting fee 
  • Account management fee

With so many different fees, how do you know how much it will cost you to sign with a company? This is why it is essential to look at a deal the company has made with other customers. You can request a monthly invoice from the company and see an average price.

At Shiphack.co, we are determined not to mess with you at all. The pricing we offer you in a package will solve all these questions in one go. 

We also want to say that we work at much more affordable prices compared to our competitors. In some exceptional cases, additional fees may be required, but understanding our pricing, in general, is relatively simple.

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