- What is the Shopify Fulfillment Network?Shopify Fulfillment pricing: How much does Shopify Fulfillment Service cost?
- Fulfillment feesStorage feesReturn fees and exchange feesSpecial project feesNon-compliant inbound receiving and barcode relabeling feesQuick Summary6 Key features of Shopify Fulfillment NetworkPros and Cons of Shopify Fulfillment Network
- ProsConsThe Shopify Fulfillment Process: 4 Main Steps
- Step 1: Find a Fulfillment PartnerStep 2: Store Your ProductsStep 3: Pack Your ProductsStep 4: Ship to Your CustomersHow to Add Fulfillment to Your Shopify Store: 5 Simple StepsShopify Fulfillment Network vs. Amazon FBA: A comparison
- AvailabilityCosts
Order fulfillment is costly and complex. Luckily, we have Shopify Fulfillment Network, a fast and cost-effective solution for Shopify store owners to fulfill their orders. It costs between $13 to $26, depending on the carrier you choose, to ship a product from Indiana to California. And it could take days or weeks to get it shipped.
It is complex because, without being done carefully and systematically, you may end up shipping an order to the wrong person and making your data a mess. This is a comprehensive review of this Shopify Fulfillment Solution.
By the end of this article, you’ll learn about:
what Shopify Fulfillment Network is Shopify fulfillment pricing: how much does it cost Whether you are eligible to use fulfillment solution or to save time, you can absolutely take a look at this video:
What is the Shopify Fulfillment Network?
The Shopify Fulfillment Network app (SFN) is a service that allows merchants to outsource inventory storage and order fulfillment to Flexport, Shopify’s logistics partner. By integrating with the Fulfillment Network app, businesses can manage inventory transfers and track orders directly from their Shopify admin. Flexport handles picking, packing, and shipping products, with most U.S. deliveries reaching customers within three days.
NOTE: Currently, Shopify Fulfillment services are available only in the US and Canada.
Related posts
Shopify Fulfillment pricing: How much does Shopify Fulfillment Service cost?
Shopify Fulfillment Network has no overhead cost – you only pay once you sell a product. The final cost for the sold product depends on the weight of your products and the services you use. Plus, there is no upfront fee for the first six months.
For one single delivery of multiple products, you’ll enjoy some discount on the delivery fee. You can click here to see how much money you could save per delivery by selling more than one item.
But the total cost doesn’t just about the delivery fee. Here are other fees for services you may use when fulfilling your order using SFN. Additionally, understanding Shopify fulfillment network pricing in detail will help you effectively manage your budget and anticipate costs associated with different order scenarios
Fulfillment fees
The SFN fees depend on the size and weight of the product and the destination the product is shipped. These fees include inbound receiving, picking, packing, supplies, and shipping.
Domestic fulfillment fees are billed once the order is completed. Meanwhile, international fulfillment fees are billed daily.
Storage fees
Storage fees apply to inventory that remains in their stock longer than 180 days (six months).
That means if it’s less than six months, you don’t have to pay.
If it’s longer than six months, the fees will be billed nightly. You’ll pay the fees monthly ($2.25 per cubic foot divided by 30 days) along with all other fees once.
The storage fees are billed monthly, along with your monthly subscription plan.
Return fees and exchange fees
The domestic return fees include the fees to receive, transport, and process a return from a customer. They are charged daily.
The return fees are billed daily.
Special project fees
If you need additional customization for your fulfillment process, which involves SFN staff, you are charged an additional hourly fee.
The return fees are billed monthly.
Non-compliant inbound receiving and barcode relabeling fees
You will incur a relabeling fee for each product with a missing, unreadable, or inaccurate barcode
For each shipment that is non-compliant with SFN, you’re charged a non-compliance fee.
These fees are billed daily.
Here’s a simplified table view of the fees associated with Shopify Fulfilment Network (SFN):
Fee Type Description Billing Frequency Domestic Fulfillment Fee for each order fulfilled in the US, covering order receipt, packing, supplies, and domestic transport. When the order is fulfilled International Fulfillment Fee for each international order, including inbound receiving, packing, materials, and international transport. Daily Storage No fee for products sold within 180 days. Long-term storage fee for unsold products after 180 days: $2.25 per cubic foot. Monthly Domestic Returns Fee for processing returned items, including shipping back to SFN and handling the return. Daily Non-compliant Inbound Fee for inbound transfers that don’t meet SFN requirements upon arrival at SFN center. Daily Barcode Relabeling Fee for fixing unreadable, incorrect, or missing barcodes on products arriving at SFN. Daily Special Projects Hourly fee for any special work by SFN personnel outside regular pick-and-pack services. Monthly Quick Summary
💰 Frequencies
SFN charges added to Shopify bill at different frequencies:
- Fulfillment fees daily
- Storage fees monthly
💼 Calculating fulfillment costs with SFN Calculator:
- Enter item size, weight, quantity, and destination
- Get estimated fulfillment or storage costs
📊 Summary of Shopify fulfillment pricing and fees in the United States:
- Domestic fulfillment fees charged daily
- International fulfillment fees charged daily (excluding duties)
- Storage fees billed monthly
- Domestic return fees charged daily
- Non-compliant inbound receiving fees charged daily
📦 Determining billable weight:
- Based on SKU gravitational weight and dimensional weight
- Billable weight chosen based on greater value
- Example provided for dimensional weight calculation
🇺🇸 Domestic fulfillment fees include:
- Inbound receiving
- Inventory forwarding
- Pick and pack
- Supplies
- Transportation
- Support
🌎 International fulfillment fees include:
- Inbound receiving
- Inventory forwarding
- Pick and pack
- Supplies
- Transportation
- Support
📦 Storage fees depend on:
- SKU dimensions
- Number of units
- Current month
- Duration in SFN inventory
🔄 Domestic return fees include:
- Processing fee
- Label fee
⚠️ Non-compliant inbound receiving:
- Extra fees for non-compliant shipments
- Possible delays in processing
When evaluating the costs of using the Shopify Fulfillment Network, don’t forget to consider Shopify domain pricing as part of your initial setup costs. This expense should be factored into your overall budget alongside fulfillment costs.
6 Key features of Shopify Fulfillment Network
Below are the 6 key features of Shopify Fulfillment Network:
- Fast and automatic order fulfillment: Shopify Fulfillment Service automatically fulfills orders as soon as they are placed. Shopify Fulfillment offers fast shipping times to ensure that your customers receive their orders quickly.
- Real-time tracking: Shopify Fulfillment Network provides real-time tracking for orders, so merchants can easily monitor the progress of each order and ensure that customers receive their orders in a timely and accurate manner.
- Seamless inventory management: Shopify Fulfillment Network allows merchants to track and manage their inventory, so they can quickly respond to any changes in demand or supply. It also provides an overview of their current stock levels, helping merchants improve their inventory management process.
- Quick returns and reorder processing: Shopify Fulfillment will handle returns and exchanges for you so that you can focus on other areas of your business. All returned, saleable items will be repackaged and added back to your active inventory.
- Custom packing slips: You can have your own packing slips, which could help enhance your brand.
- Customer support: Shopify Fulfillment Service provides customers with 24/7 customer support, so they can get the help they need when they need it. It also ensures that orders are fulfilled without any errors or delays.
Pros and Cons of Shopify Fulfillment Network
Here are the pros and cons of this fulfillment solution:
Pros
- Easy to use: Shopify Fulfillment Service is integrated with Shopify’s ecommerce platform, making it easy for store owners to manage their orders and shipments.
- Fast and efficient fulfillment: Shopify Fulfillment Network uses advanced technology and automation to quickly fulfill orders, reducing shipping times and improving the customer experience. Notably, it can deliver orders in two days within the US.
- Inventory Management Advice: Based on customer locations, Shopify Fulfillment provides recommendations on where to store inventory. By distributing inventory across multiple fulfillment centers in the Shopify network, businesses can achieve faster deliveries and reduced shipping costs.
- Product Selection: Business owners have the flexibility to select which products from their inventory they wish to be fulfilled by Shopify. This selection can range from a single item to the entire inventory.
- Robotic Precision: Shopify utilizes robotics in their fulfillment centers to ensure quick and accurate processing of orders. They claim a high accuracy rate of 99.5%.
- Customization Options: While Shopify handles the fulfillment process, businesses retain the ability to customize their orders with personal packaging and inserts, ensuring that the brand’s identity is maintained.
- Reduced shipping costs: Shopify Fulfillment Network offers competitive shipping rates, which can help store owners save money on shipping costs.
- Reliable delivery: Shopify Fulfillment Network partners with trusted carriers to ensure reliable delivery, reducing the risk of lost or damaged shipments.
Cons
- Limited geographic accessibility: Though it allows international delivery, Shopify Fulfillment Network is currently only available for merchants in the US and Canada. Sellers based in other countries cannot use this service.
- Restrictions on product types: The Shopify Fulfillment Service imposes restrictions on the types of products it can fulfill. So those who sell these certain types of goods cannot use this service.
- Increased fees: While reducing shipping costs, SFN imposes a fee for every order fulfilled and service utilized. This can add up over time and increase the overall cost of doing business for store owners.
- Dependence on Shopify platform: This fulfillment solution integrates with Shopify’s ecommerce platform, requiring store owners to utilize Shopify for accessing the fulfillment network.
NOTE: When exploring international shipping options with the Shopify Fulfillment Network, it’s also important to understand Shopify international pricing. This includes not only the costs associated with international fulfillment but also the variances in pricing based on different regions and currencies.
The Shopify Fulfillment Process: 4 Main Steps
Step 1: Find a Fulfillment Partner
First, you need someone to help with getting orders to customers. This could be Shopify or another service that handles storing and sending out products. Just choose the one that works best for your store.
Step 2: Store Your Products
Instead of renting your own big storage space (which can be expensive), you can use a fulfillment company. They have large spaces where they keep your products. This can save you money and make shipping faster, as they often have warehouses in different places.
Step 3: Pack Your Products
Once someone orders from your store, the fulfillment process includes taking the product, putting it in a box, and getting it ready for shipping. You can do this yourself or let a company like Shopify handle it. They keep your items and ship them out when needed.
Step 4: Ship to Your Customers
After your product is packed, it’s sent to the customer. Fulfillment companies often get cheaper shipping rates because they send a lot of packages. This means you can enjoy lower shipping costs and faster delivery for your customers.
How to Add Fulfillment to Your Shopify Store: 5 Simple Steps
In order to add fulfillment to your Shopify store, you need to locate and add the Shopify Fulfillment Network app first, then work with the app later on. Here is the whole process in details:
- Find the Fulfillment Network App: Search for “Fulfillment Network” in the Shopify App Store or directly visit the Fulfillment Network app page.
- Install the App: Click on “Add app” and follow the prompts to install the Fulfillment Network app.
- Connect Flexport: Once installed, connect your store to Flexport by clicking “Connect your store” in the Fulfillment Network app. You can sign in using your Facebook, Google, or Shopify account if you don’t already have a Flexport account.
- Sync Products: After connecting, your products will sync with Flexport. This process may take a few moments.
- Review Inventory: You can review your synced products in Flexport to ensure everything is set up correctly.
This setup will create a new location in your Shopify store for products to be fulfilled by Flexport, called SFN – Flexport.
Shopify Fulfillment Network vs. Amazon FBA: A comparison
Here is a quick comparison of Shopify Fulfillment Network and Amazon FBA, the two most popular fulfillment solutions in the fulfillment service market.
Availability
Amazon FBA is available in many countries worldwide, which means sellers from these regions can use it. Meanwhile, Shopify Fulfillment Service is currently only available for merchants in select countries, like the US and Canada.
⇒ Amazon FBA is available in more countries than SFN.
Costs
Amazon FBA charges fees for storage, fulfillment, and shipping, while Shopify Fulfillment Network charges fulfillment and storage fees, with shipping costs included in the subscription.
However, the fees depend on several factors, including the size and weight of the products you are selling, the volume of orders you receive, and the shipping destinations for your orders.
⇒ It’s hard to tell if Amazon FBA or SFN is more expensive.
Ease of use
The ease of use for each solution depends on the user’s experience and comfort level with the platforms. Some may find Amazon FBA easier, while others think Shopify Fulfillment Network is easier.
⇒ It depends on the user to decide if Amazon FBA or SFN is easier to use.
Control
Amazon FBA has more strict policies and procedures, with limited flexibility for customizing the fulfillment process.
Shopify Fulfillment Network offers more control over the fulfillment process. With SFN, you can customize your branding and packaging to create a more personalized customer experience. Additionally, SFN offers more flexibility in terms of order processing, with the ability to fulfill orders from multiple Shopify fulfillment locations.
⇒ SFN gives more control to you than Amazon FBA.
In short, you should consider your experience with one of these platforms and plan for your business to decide whether Amazon FBA or SFN is right for you.
Table comparison of Amazon FBA vs. Shopify Fulfillment Network
Who can use the Shopify Fulfillment Network?
Shopify Fulfillment Network is available to all Shopify merchants. However, you have to meet these requirements to use SFN.
- Your business is located in the US or Canada.
- You use SFN to fulfill at least 1 order per day.
- You have an active Shopify Payments account
- You don’t sell products prohibited by SFN.
A fact not many know:
For businesses looking to optimize their expenses, Shopify offers the pause and build plan. This plan allows store owners to temporarily pause their store while still accessing their Shopify admin to continue building their business. This can be particularly beneficial for businesses reevaluating their fulfillment strategies or taking time to reassess their overall business plan.
Final Thoughts
Fulfillment is a big and complex part of any business selling physical products. Luckily, you have Shopify Fulfillment Service do all the hard work for you, so you can focus on promoting your business. With its seamless integration with Shopify, fast and efficient shipping, real-time tracking information, and excellent customer support, Shopify Fulfillment Network is an excellent choice for businesses looking to take their ecommerce efforts to the next level.
FAQs
Does Shopify do fulfillment?
Yes, Shopify offers fulfillment options through Fulfillment by Shopify and supports Shopify third party fulfillment services like Amazon FBA, ShipBob, and others.Does Shopify have a fulfillment center?
Yes, Shopify operates its own network of fulfillment centers under Fulfillment by Shopify, designed to help merchants store, pack, and ship orders efficiently.How does Shopify fulfillment work?
Shopify fulfillment works by automatically routing orders to Fulfillment by Shopify or Shopify third party fulfillment providers, where products are stored, picked, packed, and shipped directly to customers.What is the fulfillment service in Shopify?
The fulfillment service in Shopify includes Fulfillment by Shopify, which provides warehousing and shipping support, and integrations with Shopify third party fulfillment services for customized logistics solutions.Sam Nguyen is the CEO and founder of Avada Commerce, an e-commerce solution provider headquartered in Singapore. He is an expert on the Shopify e-commerce platform for online stores and retail point-of-sale systems. Sam loves talking about e-commerce and he aims to help over a million online businesses grow and thrive.Related Post