Important Factors of Drop-shipping Price

The price of third-party logistics has always been the first focus of e-commerce sellers. After all, it is related to the cost and profitability of their own companies. Generally speaking, they need to provide some other data before receiving the quotation(product weight, quantity, and billing quantity , packaging methods, required storage area, etc.). So today we will analyze why we need to provide so much data, and what are the important price components of an order fulfillment company.

Because the product needs to be shipped by express delivery, the express delivery price will be closely related to the weight and the amount. It will be more favorable if the number of e-commerce sellers is relatively large.

Since e-commerce sellers need to deposit their goods in the warehouse of a warehousing agency, they need to use a certain storage area. There will be a fee for the lease of the warehouse area. However, unlike self-leasing warehouses, in order fulfillment warehouse, e-commerce sellers only need to lease the corresponding area according to the actual storage area they need, which avoids the waste of warehouse area.

  • Operating Expenses in the Warehouse

The operating expenses in the warehouse mainly include loading and unloading goods, warehouse management, picking, secondary packaging, etc. Then this cost will be related to factors such as quantity and packaging method. With more quantities, the warehouse management staff naturally needs more manpower and energy to manage the goods. When picking according to the order, it also needs to spend more time and energy to operate, resulting in increased prices. The packaging method depends on the customer’s requirements(such as direct bagging and delivery)and the need for ice packs, which can affect the final price.