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.

Will Automated Warehousing Replace Order Fulfillment Company?

With the advancement of modern automation, automatic warehousing equipment has gradually entered people’s attention, especially e-commerce warehouses. It can be said that the rise of modern e-commerce warehousing outsourcing services must be inseparable from the assistance of warehousing automation equipment. However, in the modern era of rapid scientific and technological progress, automated warehousing will be an inevitable choice in the future. So is it necessary to find a third-party logistics services? Will e-commerce order fulfillment warehouse be replaced?

On the one hand, with the widespread popularity of automated storage and equipment, the price cost is still unaffordable to many e-commerce sellers. Especially for small and medium-sized sellers, under the premise of small shipments, spending a lot of money to buy automated storage will only increase unwarranted consumption. In fact, the better choice is the e-commerce warehousing outsourcing service. Under the urging of the times, the third-party warehouse must be equipped with various types of automatic equipment, which will be better than self-built automated warehousing. Higher delivery efficiency and  more favorable price can help small and medium-sized companies better meet the challenges of the wave of automation.

On the other hand, most e-commerce sellers will adopt the principle of proximity when building their own warehouses, that is to say, the want to set up warehouses in areas close to their own companies to facilitate supervision. Then this will inevitably lead to the problem of low timeliness of delivery. But the third-party e-commerce warehouses are all located near the express distribution center, which has a considerable advantage in terms of timeliness of delivery. With the ultra-high accuracy of automated warehousing, it can greatly improve the timeliness of logistics and the accuracy of delivery.