UK fulfilment costs usually combine receiving, storage, order picking, packing materials, shipping and returns charges. The total depends on your products, stock levels, order mix and service requirements. A low headline pick fee does not tell you the full cost of outsourcing.
The most useful comparison is a model of your own operation. This guide explains what to include in that model and what to ask providers before accepting a quote. It does not present a universal market rate or an EMFH price list.
The main fulfilment charges
Receiving and goods-in
A provider may charge by pallet, carton, unit or time spent. Mixed, unlabelled or unexpected deliveries can take longer to process than clearly identified stock with advance information. Ask what the standard receipt includes and which checks cost extra.
Storage
Storage may be measured by pallet position, shelf, bin or cubic volume over a defined period. Find out whether charges use average occupancy, peak occupancy or another rule. Slow-moving stock and oversized packaging can increase space requirements even when order volume is modest.
Picking and packing labour
Some quotes include the first item in an order and charge separately for additional picks. Others use a different structure. Compare baskets with one, two and several items. Bundles, fragile products and complex packing instructions can change the handling time.
Packaging
Check whether cartons, mailers, protective material, tape and inserts are included. Branded packaging may involve purchasing, storage and replenishment work. Agree the acceptable alternatives if a preferred carton runs out.
Shipping
Shipping depends on parcel size, weight, destination and service. Ask about volumetric weight, fuel adjustments, remote-area charges and the treatment of surcharges. Compare the same service profile across quotes instead of comparing an economy service with an express one.
Returns and extra work
A basic return receipt may not include inspection, photography, repacking or disposal. Marketplace preparation, relabelling, stock counts and special projects may also be charged separately. List the work you expect before asking for a total.
A simple monthly cost model
Build the estimate as: receiving + storage + fulfilment labour + packaging + shipping + returns + account and project charges. Then divide the total by orders dispatched to calculate a blended cost per order.
Keep the cost categories separate as well. A single blended number hides whether an increase came from more stock held, larger baskets or a change in carrier services.
| Input | Information to collect |
|---|---|
| Orders | Monthly total and daily peak |
| Basket size | Average units and share of multi-item orders |
| Stock | Average and peak storage requirement |
| Parcels | Packed dimensions and weights by product group |
| Destinations | UK postcode mix and overseas share |
| Returns | Expected volume and inspection requirements |
Compare three realistic scenarios
Ask each provider to price a normal month, a busy month and a slower month using identical assumptions. A proposal with a monthly minimum may look competitive at peak volume but less attractive when sales fall.
Include setup and transfer costs separately from ongoing costs. Product onboarding, integration work and inbound freight affect the first month but should not be confused with the recurring operating model.
Questions that uncover missing costs
- Is there a monthly minimum or account-management charge?
- Are prices quoted before or after VAT, where applicable?
- What counts as an additional pick or non-standard order?
- How are carrier adjustments passed through?
- What happens when stock arrives without compliant labels?
- Are peak-period labour or storage charges different?
- What will it cost to release and transfer stock if the arrangement ends?
Compare service outcomes alongside price
A cheaper operation can become expensive if errors create replacement shipments and customer-support work. Review dispatch commitments, stock visibility, exception handling and liability terms beside the financial model.
For an in-house comparison, include rent, staffing, management time, software, equipment, materials and cover for holidays. Count costs that remain after outsourcing too; a lease payment does not disappear just because packing moves elsewhere.
Frequently asked questions
Is outsourcing always cheaper?
No. The result depends on your current costs, the proposed service and the resources you can actually stop paying for. It may offer operational benefits even where the cash comparison is close.
Why can two retailers pay different rates?
The same order count can involve very different products, storage, basket sizes, destinations and handling work.
How do I get an accurate EMFH quote?
Share your SKU list, order history, packed dimensions, stock levels, destinations and special requirements. A specific brief supports a more useful proposal.
Request a tailored fulfilment quote
Explore EMFH’s fulfilment services and returns support, then contact our Nottingham team to discuss your cost model and operating requirements.
