I have started an online business and was considering using a fulfilment service but all the providers seem to be to expensive for my needs. The majority of the products we sell weigh less than 2g each and the CPU is around $0.20. This is where my problem is, the cost of fulfilment per unit is more expensive than the item.
I need a fulfilment service that bases their price structure on weight and size without a base charge. I also need them to package individual order requirements varying from 1-200 each.
Any suggestions or recommendations of fulfilment services would be appreciated.
Pricing for order fulfillment is based on the cost of packaging, the cost of shipping, storage cost, the complexity of the order process, and profit. If you are always shipping the exact same small item, at a fixed weight, exactly the same way, the fulfillment house might want a $1 profit per item on top of the cost associated with fulfilling the order. If the order process is complex, the fulfillment house is going tp want much more than $1 profit per piece.
If you want to know whether their pricing is fair, figure out what it would cost you to ship the items and add in a profit margin to that. And if it is too hard for you to ship the items, you might need to simplify things on your end.