Understanding billing and pricing

Shopify Fulfillment Network (SFN) charges are billed in two different ways: per fulfillment and per month. Pricing consists of the following components:

Per fulfillment

  • picking and packing
  • shipping

Per month

  • storage
  • special projects

Every 30 days, you’re charged for the storage space used to stock inventory, and for any special projects. The billing cycle starts when the Shopify Fulfillment Network app is first installed. The Shopify Fulfillment Network billing cycle is not the same as the Shopify billing cycle.

Wholesale orders are charged separately. For more information, refer to Special Project charges.

Shopify Fulfillment Network billing is subject to Shopify billing thresholds. To learn more about Shopify billing, refer to Understanding your Shopify bill.

Pick and pack charges

When a customer places an order, the SFN picks the items that were ordered and packages them. Pick and pack charges, including how you're charged for supplies, marketing inserts, stickers, and branded boxes, are defined on the Pricing page in the SFN app.

If the SFN runs out of your custom packaging and an order is shipped using our in house packaging, then you might be charged for the supplies used. The packaging used is at the discretion of the fulfillment center, so if an order requires more packaging than expected, then you might receive higher picking and packing charges.

Shipping charges

Shipping charges are the shipping rates that are charged per shipment. They include the shipping method, billable weight, and, depending on your agreement, can include zone pricing or rate cards.

The cost to ship each order is based on the following factors:

  • The shipping carrier service, determined by the shipping service the customer selected at checkout.
  • The billable weight of each package.
  • The number of shipping zones through which a shipment travels. For more information, refer to Zone-based pricing.

Shipping carrier services

The shipping carrier service that is chosen to ship your orders is based on which service you mapped your shipping rates to. For more information, refer to Mapping your shipping rates.

In Canada, the shipping carrier cost is passed on directly to you. In the United States, zone-based pricing determines the final cost.

Billable weight

There are two methods used to determine the billable weight: package weight and dimensional weight.

You're billed for whichever type of weight is higher. The reason for this is because both weight and size are important factors for shipping carriers. Weight impacts factors such as fuel costs and which vehicles can be used, while size impacts the number of packages that can be put in a vehicle.

For example, if you sold a pillow, then while the weight would be very low, it would take up a large amount of space in a vehicle, which means it would be charged based on dimensional weight and not package weight.

Package Weight

The package weight is the sum of the weights for each of the variants in the shipment, along with the weight of the packaging.

To calculate your package weight, weigh the shipment using a scale.

Dimensional Weight

Dimensional weight is determined by calculating the sum of the volume of the variants in the shipment, then dividing this volume by a dimensional divisor set by the industry standard.

Your default package dimensions are sent to your shipping carrier along with your order's weight to calculate shipping rates for your customer. Dimensional weight is determined by the carrier based on the height, width, and depth of your packages.

To calculate dimensional weight, multiply the dimensions of your shipment in inches. Then divide by 166, which is the dimensional divisor for US shipments.

Zone-based pricing

In the United States, the Shopify Fulfillment Network uses zone-based pricing to help determine the cost to ship your orders. This means that the network has divided the United States into geographical zones, and a shipment's shipping cost increases with each zone that it enters.

Shipping zones of the United States

The more Shopify Fulfillment Network warehouses that stock your products, the cheaper your overall shipping costs will be because your shipments will travel through fewer zones.

Pricing is based on your rate card. A rate card outlines the price that will be charged based on the Zone and billable weight of the shipment.

Based on the shipping rate that has been selected, the Shopify Fulfillment Network selects the best carrier and mail service to fit the timeframe mapped. All rates are represented of a blended rate model to get competitive rates for all shipping zones. Shopify Fulfillment Network doesn't support carrier-specific shipping rates.

Storage charges

Storage costs are calculated on a daily basis. The calculation includes the number of variants, volume of the variants in cubic feet, and the per-unit storage rate.

Only available inventory is accounted for. Available inventory is the inventory that's stored at a fulfilment center. This includes allocated inventory, which is inventory that's been reserved to fulfill orders but hasn't yet left the fulfillment center.

Inbound inventory, backordered inventory, and other inventory counts are not counted.

Special project charges

Special projects are additional services that are performed by a fulfillment center beyond shipping your orders, such as the following:

  • inbound receiving
  • wholesale orders
  • returns
  • value-added special projects

Inbound receiving charges and wholesale order charges are billed monthly. For example, all inbound receiving charges for September would be billed as one charge in October.

Returns and value-added special project charges are recorded on your Shopify Fulfillment Network invoice as soon as they occur.

Special projects are billed by the hour, and have a one-hour minimum charge. Rates for your special projects can be found in your Shopify Fulfillment Center App in the Billing section by clicking View pricing.

Inbound Receiving

When a fulfillment center receives an inbound transfer, the time it takes to organize and receive the variants is charged as a special project. All inbound transfers are charged. If an inbound transfer doesn't conform to the Shopify Fulfillment Network's requirements, then it takes more time to process and you might receive higher charges.

To reduce inbound receiving costs, make sure that transfers are compliant and have accurate quantities within any quantity ranges that you set. For more information on quantity ranges, refer to Add ranges to inbound quantities.

Wholesale

Wholesale orders are charged separately from retail orders. For details about the wholesale charges, click on the line item under Special Projects. A CSV file is available for download with the details of each shipment.

Return to Sender shipments

If a shipment can't reach its final destination, then the shipping carrier will return it to the original sender. This is called a Return to Sender (RTS) shipment. Processing RTS shipments is charged based on when the return is processed. A CSV file is available for download with the details of each shipment. For more information on finding the CSV file, refer to View Shopify Fulfillment Network charges.

Value-added special projects

You can request value-added special projects to be completed at the Fulfillment Center on your behalf. These requests can include services such as kitting, product assembly, and product customization. Special projects result in additional charges.

When you request a special project, you receive a time and cost estimate for you to review and approve. After the work is completed, this cost displays on your Shopify Fulfillment Network invoice.

For more information, refer to Submitting special projects.

View Shopify Fulfillment Network charges

A summary of your charges can be found on your monthly Shopify invoice.

Steps:

  1. From your Shopify admin, go to Settings > Billing.
  2. In the Recent bills section, click the bill.
  3. Within the bill, click the Apps section.

For a more detailed breakdown of your past charges from the Shopify Fulfillment Network app, click Billing > Export to CSV. Four CSV files are downloaded to your computer in a ZIP file:

  • pick_and_pack_charges.csv
  • shipping_charges.csv
  • special_project_charges.csv
  • storage_charges.csv

Open the files for a more detailed breakdown of each type of cost.

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