One moment you're sending your inventory to the warehouse, the next you're waking up in an icebath in back-alley Guagzhou.
So, you're considering using a 3PL (third-party logistics) provider or fulfillment center to handle your business's logistics. Smart move! One of the first costs you'll run into is going to be Inventory Intake. In this blog post, we'll be 'peeling back the curtain' on how 3PL and fulfillment centers handle and price Inventory Intake. Pretty obvious spoiler alert: There's different methods and each one has it's pros and cons.
The Different Pricing for Inventory Intake
Per Unit Pricing
This method is as straightforward as it sounds: you pay for each individual unit that comes into the warehouse. This is the simplest method of Inventory Intake pricing, and they were probably doing 'per unit pricing' for Inventory Intake back in the stone age. This method works well if you have a consistent flow of inventory that doesn't fluctuate much, and with this method, it's easy to calculate what your expenses will be.
Pros:
- Simple and predictable.
- Easier to budget.
Cons:
- Can get pricey with large volumes.
- May not account for special handling needs.
Ea-nāṣir's copper sucks, and also he messed up on the per unit pricing for our e-commerce store's Inventory Intake. #WorstCopperMerchantInSumeria!
Per Pallet Pricing
Here, you’re charged for each pallet that gets unloaded and stored. Think of it like playing Tetris with pallets—each one costs a bit, but you get maximum efficiency if everything fits just right. Unlike Tetris though, when you stack everything up just right the bottom layer doesn't explode (hopefully). This method is ideal for bulk items that can be stacked neatly and take up less space per unit!
Pros:
- Efficient for bulk shipments lot of items items.
- Reduces per-item cost.
Cons:
- Not great for small, high-value items.
- Pallet space isn’t always maximized.
Pallet pricing: because sometimes, size does matter.
Hourly Labor Rates
Some 3PLs charge by the hour for the time their workers spend receiving, inspecting, and storing your goods. Imagine it's like hiring a bunch of the neighborhood kids to help you move your stuff and paying them a set amount by the hour... but instead of illegally hiring children, your inventory is handled by skilled workers! This method is particularly useful for large, high-value items that need careful handling and inspection, ensuring you are only charged for the actual labor involved in managing these items.
Pros:
- Cost aligns with actual time spent: If your high-value items need extra care, the costs will reflect the actual labor involved.
- Flexible for varied workloads: Ideal for items that require detailed handling and inspection.
Cons:
- Hard to predict costs: The time required can vary, making budgeting a bit tricky.
- Efficiency can vary: If workers are slow or inefficient, costs can add up quickly.
Child labor isn't all bad. It's a well known fact that the children yearn for the mines.
Flat Rate Per Shipment
Some 3PL providers / fulfillment centers offer a flat rate per shipment, regardless of the size or value of the items. This method can be advantageous for large, high-value items because you know exactly what you’ll be paying upfront. We tried to come up with a fun analogy for this method, but honestly, it's so straight forward what else is there to say about it?
Pros:
- Predictable costs: You know the fee in advance, which makes budgeting easier.
- No surprises: Avoids unexpected charges based on handling time or number of items.
Cons:
- May be costlier for small shipments: If you ship smaller quantities, this method might not be as cost-effective.
- Less flexibility: Not tailored to specific needs of each item, which might not be ideal for very delicate or complex shipments.
Common Fees They Hit You With
Inspection Fees
Before your stuff gets comfy in its new warehouse home, it might have to go through a quality inspection. This inspection ensure your products meet quality standards, but they can add a little surprise to your bill. Inspection fees usually ends up being a fee that's attached on top of whatever you pay for Inventory Intake. Not to brag (ok, maybe just a little), but here at Mix-Mix Mail we do basic inspections for free whenever your inventory reaches our warehouse.
Unless your inventory is French bread, in which case, feel free to have your inventory inspect itself. WE ONLY INSPECT REAL BREAD HERE!
Labeling Fees
Need labels? Sometimes this can be an extra charge. Whether it's barcodes, SKU labels, or those fancy holographic stickers, labeling services aren't usually included in the basic intake fee. It’s like getting charged extra for sprinkles on your ice cream.
Labels are a great way to add personality to your products, and extra spiciness to your bill.
Special Handling
If your products are fragile, hazardous, or need special 'tendering-loving' care, expect to pay more. Special handling fees cover the extra attention your precious cargo needs. Almost all 3PL / fulfillment centers will not price in Special Handling fees to Inventory Intake, and will instead charge you separately.
Making Sense of the Madness
So, how do you choose which method and pricing structure works best for your business? It depends on your specific needs. High-volume businesses might prefer per pallet pricing, while those with fluctuating inventory might lean towards hourly rates. Understanding these options and the associated fees can help you pick a 3PL service that fits your style and keeps your wallet nice and heavy.
Mix-Mix Mail
Here's the part where we drop our pitch: Mix-Mix Mail offers transparent pricing and modular solutions for all your 3PL / fulfillment needs. Whether you’re a startup or a growing business, we ensure your Inventory Intake process is smooth and cost-effective. No hidden fees, no nasty surprises – just straightforward service with a cute ghost monkey smile.