14 fulfillment fees to budget before you sign with a 3PL
Brands usually budget for six fees: per order packed, per additional item, storage, shipping supplies, inventory check-in and "other." A 3PL can bill you for 14. This checklist lists every one, with what to ask your 3PL about each before you sign.
Line by line, before you sign: the 14 fees a 3PL can bill you for
Before anyone signs with KSP, we walk you through an invoice built on your business, line by line.
Four fee lines your 3PL can raise after you sign
Minimums, inventory movement, packaging and returns are lines 2, 7, 8 and 10 of the Fulfillment Fee Checklist.
Line 11 of 14: the peak surcharge on your December invoice
Peak surcharges are line 11 of the Fulfillment Fee Checklist. If peak rates aren't in your contract, the December invoice can carry rates you never signed.
$2–$8 a kit, plus a setup fee every time the spec changes
KSP has built 20.9M kits. Lines 5 and 6 of the Fulfillment Fee Checklist cover how a 3PL bills kits: the additional-item fee a 6-component bundle pays five times, and a new setup charge every time the spec changes.
Same contents, three shipping weights
One brand's 3PL billed the same contents at 1.6, 2.2 and 2.6 lb in one week because it kept switching the box. Packaging and shipping markup are lines 8 and 9 of the Fulfillment Fee Checklist.
Quoted $11–12 per order. Billed $26.
A DTC brand's test order came back at $26 against an $11–12 quote, and most of the extra $14 was shipping priced on the item's real size. Line 9 of the Fulfillment Fee Checklist covers postage markup and size-based billing.
What's in the checklist
- The one-month invoice test: a single division that shows if your bill matches your quote (page 2).
- Why a 6-item bundle can pay the same fee five times, and what to ask so it doesn't (Line 5).
- One pallet in, one receiving fee, right? Wrong. The two lines it can bill, and the inbound mistake that adds labor on top (Line 3).
- 8 weeks of "out of stock" on every listing, from one warehouse move in January. When your 3PL can move your stock, and who pays (Line 12).
- WARNING for Amazon sellers: one wrong label sheet put 400 units under the wrong ASINs for three weeks of Q4. What to ask your prep center first (Line 13).
- PLUS a 3-band score on page 2: the band that says renegotiate before renewal, and the one that says you're paying margin nobody quoted.