Fulfillement Services

When you begin to research fulfillment services, you rapidly find that they price in enough different ways that they can be hard to compare to each other -- and it can be difficult to figure out what kind of bill you'll be paying at the end of the month. Here are some fees and policies to watch for as you research:

Set-Up Fees. Fulfillment service houses charge set-up fees to help cover their costs of acquiring your business and preparing their system to take your products. Make sure these are reasonable and within your budget.

Order Processing Fees. This may include a flat amount for each order, plus a charge for each additional item in the package. Rates vary with the number of orders processed per month. Ask if boxes and packing materials included in the order processing fees or if they are in addition.

Order Processing Minimums. If you're a small merchant, you may have trouble making the minimums. Minimums are good for the fulfillment house but not for you when you're getting started. Make sure your average number of orders is likely to easily exceed their order processing minimums or else you'll be paying fulfillment service fees even if you aren't getting orders.

Return Processing Fees. Find out what you are charged when a customer returns the merchandise and how this process will be handled.