Shopify Fulfillment Pricing: Costs and Examples of What to Expect

Shopify does not openly state its pricing for its Shopify Fulfillment Network online. Instead, each merchant receives pricing based on their specific business needs.

Shopify provides a calculator to estimate what you should expect to pay, and there are other hints available to help you understand the costs associated with the Shopify Fulfillment Network. This blog post aims to explain Shopify Fulfillment pricing and provide you with the necessary information to make an informed decision.

What is the Shopify Fulfillment Network?

The Shopify Fulfillment Network is a service that offers merchants a network of warehouses to store their products. The service provides automated order fulfillment services, including picking and packing, inventory management, and shipping. This saves merchants time and eliminates the cost of storing inventory, hiring staff, and shipping products. With the Shopify Fulfillment Network, merchants can focus on growing their business while relying on a hands-free fulfillment process.

We've discussed ecommerce fulfillment options in the past, including methods like third-party logistics, dropshipping, and self-fulfillment (in-house). Shopify Fulfillment falls into the third-party fulfillment category, which is a great option for merchants who want to outsource the fulfillment process and gain access to an established network of warehousing.

How Does Shopify Fulfillment Pricing Work?

The pricing of Shopify Fulfillment is based on several factors, such as the size and weight of your products, the number of orders per month, and the geography of your customers.

Each of these factors will impact the cost and it's important to consider them when evaluating different fulfillment options.

How Much Does Shopify Fulfillment Cost?

The Shopify Fulfillment pricing model ensures that merchants only pay for the delivery of their products to customers. Merchants can also enjoy significant discounts on shipping rates and storage costs.

Having said that, the Shopify Fulfillment webpage lacks any concrete pricing plans since every business receives a different quote. You must, therefore, apply for the Shopify Fulfillment plan to receive an exact quote.

As for the calculation of your fulfillment cost, we know a few things.

Shopify factors in these specific elements when deciding upon your business' fulfillment pricing:

• Storage: The size of your inventory, the number of items in stock, and any seasonal fluctuations. They essentially want to figure out how much space you'll need to use in the Shopify warehouses, and if you require any special storage needs, like cooling.
• Picking and packing: The number of tasks required to find and pack up your products. There are several factors like size, standard order quantity, and weight.
• Special projects: Like validating specific inventory or bundling products for subscription boxes.
• Transportation: How much it costs to send an item to customers, factoring in locations (it's different shipping to Canada than to the US) and other aspects.
• Packaging: The type of packaging you intend to use, like standard tape, boxes, and inserts, or custom packaging.

Estimating Your Costs with the Shopify Fulfillment Calculator

The Shopify Fulfillment Network provides its merchants with a handy calculator to help them estimate the cost of handling their products. The tool is user-friendly, and merchants can make accurate estimates without any hassles.

The pricing calculator considers these factors to generate reliable cost estimates:

• Size
• Weight
• Shipping destination
• Items to fulfill
• Storage required

What's great about the calculator is that it provides templates for common items like sunglasses, planters, and saucepans.

It's also possible to fill in details for your own items.

The final price provided is an estimate; that's all. You should apply for a custom quote to figure out your actual Shopify Fulfillment pricing.

Having said that, there's no harm in giving you an idea of example fulfillment pricing based on certain products.

Keep in mind that all of these prices include:

• Rapid delivery times within 3 days.
• A shipping discount for multi-product orders.
• No minimum for the order volume.
• A free “Shop Promise” badge.
• Included forwarding and inventory receiving.

Now, let's take a look at some sample costs for the Shopify Fulfillment company, based on commonly shipped items.

Sunglasses

Sunglasses, being lightweight and relatively small, offer a cost-effective fulfillment method. Various factors such as the packaging type, transportation distance, and storage needs influence the overall price.

• Size: 6 x 3 x 2 inches
• Weight: 0.05 pounds

Here are the estimates, assuming shipping to the United States:

• $5.67 to fulfill one pair of sunglasses
• $1.20 to store 50 of them for 30 days
• $7.40 to fulfill two sunglasses in one order
• $21.90 to fulfill 10 sunglasses in one order
• $12 to store 500 sunglasses for 30 days

Bowl Sets

Bowl sets, due to their bulk and fragile nature, tend to have higher fulfillment costs. The packaging needs to be robust to prevent damage during transportation, and this can increase the cost.

• Size: 7 x 7 x 8 inches
• Weight: 3 pounds

Here are the estimates, assuming shipping to the United States:

• $9.29 to fulfill one bowl set
• $9.30 to store 50 of them for 30 days
• $13.10 to fulfill two bowl sets in one order
• $43.90 to fulfill 10 bowl sets in one order
• $93 to store 500 bowl sets for 30 days

Purses

Purses, being mid-sized items, may have a moderate fulfillment cost. Due to soft materials and non-standardized sizing, storage and shipping can get a little pricier.

• Size: 9 x 9 x 11 inches
• Weight: 1.5 pounds

Here are the estimates, assuming shipping to the United States:

• $12.24 to fulfill one purse
• $21.00 to store 50 of them for 30 days
• $19.10 to fulfill two purses in one order
• $69.40 to fulfill 10 purses in one order
• $210.60 to store 500 purses for 30 days

Bedding

Bedding items are typically bulky and may require more storage space. However, they are less fragile compared to items like bowl sets. The fulfillment cost for bedding items is driven by factors like size, weight, and the required storage space.

• Size: 18 x 13 x 5 inches
• Weight: 7 pounds

Here are the estimates, assuming shipping to the United States:

• $13.34 to fulfill one bedding set
• $27.60 to store 50 of them for 30 days
• $21.30 to fulfill two bedding sets in one order
• $80.40 to fulfill 10 bedding sets in one order
• $275.40 to store 500 bedding sets for 30 days

Financial Advantages of Going with Shopify Fulfillment

Shopify, as a fulfillment partner, offers merchants several financial benefits, outside of the pricing itself. For instance, you can take advantage of simple rates for returns, and receive preferred shipping rates with popular carriers. Additionally, merchants can leverage the Shopify Capital service to receive up to $1 million in funds that they can use for fulfillment needs. This type of funding allows business owners to invest in their companies without having the burden of high-interest loans.

Here's a list of cost-saving benefits that come along with the Shopify Fulfillment Program:

• Fast and affordable delivery: When merchants enroll in the Shopify Fulfillment program, they can enjoy low-priced shipping, with fast delivery timelines, reducing wait times for customers.
• Inventory storage fees that minimize low stock events: Shopify Fulfillment offers dynamic storage space, which automatically adjusts the cost based on current inventory levels, ensuring merchants never run low on stock.
• Simple rates for returns: The Shopify Fulfillment Network provides clear and simple rates for product returns, taking out complications and added costs.
• Flexible contracts: The Shopify Fulfillment Network enables merchants to sign up for flexible contracts and terms that meet their business needs.
• No upfront costs: Shopify Fulfillment does not require its merchants to make any upfront payments. This helps small businesses get the best out of their fulfillment operations without having to worry about investing money before getting started.
• Pricing per item and billable weight: Shopify Fulfillment provides merchants with pricing per item, as well as billable weight. This helps to ensure that merchants only pay for the services required by their business and nothing more.
• Multi-item order discounts: Shopify Fulfillment also offers merchants discounts on customer orders that contain multiple items, helping them save even more money. Even just having two items can cut fulfillment fees by at least 29%.

• Low storage fees, and no limits: Shopify Fulfillment provides low storage fees, and there are no limits to the number of products or orders merchants can store. This ensures that businesses can scale up their inventory without worrying about additional costs.
• Easy tracking: Merchants enrolled in the Shopify Fulfillment Network can easily track all orders and shipments in real-time from a single place.

• Preferred shipping rates: Shopify Fulfillment offers merchants preferred shipping rates from partner carriers like UPS, USPS, and FedEx, helping them save even more money.
• “Shop Promise” with predictable delivery dates: Shopify Fulfillment has something called “Shop Promise,” which guarantees predictable delivery dates to customers. This ensures that customers can expect their orders to arrive within the expected time frame, creating a reliable shopping experience that builds trust and loyalty with customers.
• Included inbound receiving: Shopify Fulfillment offers inbound receiving services for all orders. This eliminates the need to worry about the associated costs, which is rather common with other logistics fulfillment services.
• Included packing and shipping: Shopify Fulfillment includes packing and shipping services for all orders. This ensures that products are safely packaged and shipped with care every time, without an extra expense.
• One consolidated invoice in Shopify: Shopify Fulfillment provides merchants with one consolidated invoice in their Shopify ecommerce platform. This means it's on the same invoice you see for apps you pay for, and your Shopify subscription.
• Steady domestic pricing: Shopify Fulfillment provides steady domestic pricing for your SKUs, allowing merchants to easily budget for when they ship orders. This makes it easier for local shipping all around.
• Clear pricing by region: Shopify Fulfillment also provides clear pricing by region, making it easy to compare prices for different parts of the world. This allows merchants to choose the most cost-effective option for their needs, ensuring they get the best deal on shipping every time.
• Choice of your delivery speed: Shopify Fulfillment offers merchants the choice of their preferred delivery speed. This means that they can select the option that best suits their business needs, ensuring customers receive their orders promptly.
• Smooth cross-border delivery: Shopify Fulfillment provides a smooth cross-border delivery experience, helping merchants reach customers around the globe. This enables them to expand their business and reach new markets with ease.
• Only pay when inventory is sold: With Shopify Fulfillment, merchants only pay when inventory is sold. This means that they don't have to worry about any upfront costs or additional charges for storing and shipping products. This makes it easier for businesses to manage their finances more effectively, ensuring there are no unexpected expenses.

How to Get a Custom Quote for the Shopify Fulfillment Program

If you are interested in the Shopify Fulfillment Network, getting a custom quote is simple. Merchants can visit the Shopify Fulfillment Network page, create an account, and input their inventory details. The system will generate a custom quote based on your inventory data.

Here's a step-by-step guide on how to do it.

Step 1: Visit the Shopify Fulfillment Network Website

First things first, you need to head on over to the Shopify Fulfillment Network website. This is where you’ll find all the info you need about the service and where you can start the process of getting your custom quote.

Step 2: Create Your Account

Once you're on the site, click on the “Learn More” button. This will take you to an area to create a Shopify account, or to log into your current account.

You must already have a Shopify account and website. This way, Shopify can evaluate your business. If not, you're prompted to create a Shopify store before learning about Shopify Fulfillment pricing.

Step 3: Apply for Your Custom Quote

After your account is all setup, it's time to add the details about your inventory. You'll be asked to input information such as the number of items, the types of products, and their dimensions/weight. The more accurate you are here, the better your quote will be. Submit the form when you're done.

Step 4: Receive Your Custom Quote with Shopify Fulfillment Pricing

After you've inputted your inventory details, Shopify calculates a custom quote for you. This will give you an idea of what it would cost for you to use their service for your fulfillment needs. Use this to compare Shopify with other fulfillment centers and fulfillment providers like Amazon FBA and ShipBob.

Our conclusion on Shopify Fulfillment Pricing

The Shopify Fulfillment Network (SFN) is an excellent solution for merchants seeking a simple and efficient means of handling their inventory for their website and other sales channels. With a straightforward pricing model; merchants can enjoy fast and affordable shipping, dynamic storage, and a host of other financial benefits. By understanding the pricing structure of Shopify Fulfillment, ecommerce business owners can make informed decisions about their order fulfillment processes.

Let us know in the comments if you're a current or past Shopify Fulfillment user. Share your thoughts on the pricing!