3 Ways Your Logistics Company is Overcharging You

Are you paying more than you need to for order fulfillment?

Outsourcing fulfillment is an investment in yourself and your company and you’ve got to pay to play.  But every dollar counts when it comes to growing a business, so we’re here to make sure you’re not paying more than you need to.  

Keep reading to see if you’re being overcharged by your 3PL. 

 1. Fuel Surcharges

Are you being billed for fuel surcharges?  These fees are implemented when gas and diesel prices spike to try and regulate costs and ensure that freight carriers are still turning a profit.

However, when the cost of fuel increases, freight carriers automatically increase the cost of postage.  So you’re already paying a fuel surcharge by paying the increased postage amount. 

Shipping through USPS? USPS does not charge anyone fuel surcharges.   So if your fulfillment center is shipping via USPS and you receive a bill for fuel, your money is going directly into their pockets. But not all 3PLs charge these fees so make sure to read the fine print or call and ask.

2. Storage fees 

While most 3PL warehouses do charge storage fees,  your logistics company can use this as an opportunity to overcharge you. 

While the quoted price per pallet, shelf, or bin seems reasonable, these warehouses never tell you how much product they will actually put on the shelf. 

If you’re keeping your products on a pallet, watch out for an “allowable pallet height” in the fine print. What you think may fit onto one pallet, may actually take up twice the space according to the warehouse, doubling your estimated monthly storage fees. 

3. Oversized packaging 

We’ve all received giant packages in the mail, only to open them up and find a tiny little item inside with a ton of filler. Ridiculous. 

It’s so wasteful that the postal service came up with dimensional pricing to discourage shippers from using larger packages than necessary, reducing wasted space on freight carrier’s trucks. 

The idea was that shippers would want to use as small of a package as possible because they’re paying for the size and volume of the box rather than the weight.

But what if the shipper isn’t the one paying for shipping…like when you outsource fulfillment? Do they care what size box is most efficient or are they just trying to take as few steps as possible to complete the order?

Most eCommerce packages are less than 1 cubic foot and are not subject to dimensional pricing, yet oversized packages are shipped all the time. While your logistics company may not be making a profit by shipping your products in larger boxes than necessary, you are definitely overpaying for postage and packing materials.

So check in with your logistics company to make sure you’re not paying more than you need to for order fulfillment.  And if you find out you’re being overcharged, don’t be afraid to make a change.  There are plenty of 3PLs out there to choose from so there is no reason you should be breaking the bank to get the job done. 

Outsourcing fulfillment is a life-changing investment. Just make sure to partner with an honest, fair, and responsible logistics company so it changes your life for the better.

AVL Fulfill prides itself on simple, transparent pricing. Fill out our 90 second intake form (it’s multiple choice) and apply to become one of our clients today!