Prices and fees
Shopify Fulfillment Network (SFN) charges are added to your Shopify bill at two different frequencies:
- at the end of the day
- every 30 days on your SFN billing cycle
For example, all your pick and pack fees for a day are added to your Shopify bill the next day, but all your storage fees for a month are added to your Shopify bill at the end of your SFN billing cycle. Learn more about SFN pricing and fees.
Summary of pricing and fees
SFN pricing consists of the following fees and their billing frequencies:
|Pick and pack||Pick and pack fees are charged on each order fulfilled. Pick and pack fees include pick, pack, packaging items, custom packaging items, multi-picking, and adding marketing materials to the shipment.||Daily|
|Packing supplies||Packaging fees are charged on each order that's fulfilled if packaging isn't included in the pick and pack fees.||Daily|
|Transportation||Transportation fees are charged on each shipment that's made using SFN services. Fees depend on the shipping method and billable weight. Depending on your agreement, fees can also include zone pricing or rate cards.||Daily in Canada or monthly on your SFN billing cycle in United States|
|Storage||Storage fees are calculated by multiplying the total volume of variants in cubic feet, number of variants, and storage rate. Storage fees are calculated daily based on inventory counts but charged monthly on your SFN billing cycle.||Monthly on your SFN billing cycle|
|Special Projects||Special projects fees are an hourly fee for any additional work that a warehouse must do to fulfill your requests that isn't included in pick and pack fees.||Monthly on your SFN billing cycle|
Wholesale orders are charged separately. Learn more about special project charges for wholesale orders.
Pick and pack fees
When a customer places an order, SFN picks the items that were ordered and packages them. Pick and pack fees, including fees for supplies, marketing inserts, stickers, and branded boxes, are defined on the Pricing page in the SFN app.
If SFN runs out of your custom packaging and an order is shipped using SFN's in-house packaging, then you might be charged for the supplies used. The fulfillment center determines which packaging to use. If an order requires more packaging than expected, then you might be charged higher pick and pack fees.
Transportation fees are the shipping rates that are charged per shipment. They include the shipping method and billable weight. Depending on your agreement, transportation fees can also 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 that the customer selects at checkout
- the billable weight of each package
- the number of shipping zones through which a shipment travels
Shipping carrier services
The shipping carrier service that's selected to ship your orders is based on which service you mapped your shipping rates to. Learn more about how to map your shipping rates.
Billable weight is determined based on the following measurements:
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 sell a pillow, then the package weight would be very low, but the package dimensions would be large and take up more space in a vehicle. As a result, the billable weight would be charged based on the dimensional weight and not the 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.
Your default package dimensions are sent to your shipping carrier along with your order's dimensional weight to calculate shipping rates for your customer.
Dimensional weight is determined by the carrier by adding the volume of all the variants in a shipment, then dividing this volume in inches by a dimensional divisor. The dimensional divisor is a set number determined by each carrier, for example, 166 is the dimensional divisor for US shipments.
In the United States, SFN uses zone-based pricing to help determine the cost of shipping your orders. In zone-based pricing, the United States is divided into geographical zones, and a shipment's shipping cost is calculated based on the number of zones that it enters.
If you stock products at multiple SFN warehouses across different zones, then your shipments might travel through fewer zones and incur lower overall shipping costs.
Pricing is based on your rate card. A rate card outlines the price that you're charged based on the shipping zone and billable weight of your shipment.
Based on your chosen shipping rate, SFN selects the best carrier and mail service to fit the shipping timeframe. All rates follow a blended rate model to get competitive rates for all shipping zones. SFN doesn't support carrier-specific shipping rates.
Storage fees are calculated by multiplying the total volume of variants in cubic feet, number of variants, and storage rate. Storage fees are calculated daily based on inventory counts but charged monthly on your SFN billing cycle.
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 fees
Special projects are additional services other than shipping that are performed by a fulfillment center, for example:
- inbound receiving
- wholesale orders
- value-added special projects
Inbound receiving charges and wholesale order charges are billed monthly. For example, all inbound receiving charges for September are billed as one charge in October.
Returns and value-added special project charges are recorded on your SFN 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 the Billing section of the SFN app by clicking View pricing.
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 SFN requirements, then it might take more time to process and you might be charged a higher fee.
To reduce inbound receiving costs, make sure that transfers comply with SFN requirements and have accurate quantities within any quantity ranges that you set. Learn more about quantity ranges for inbound quantities.
Wholesale orders are charged separately from retail orders. For details about wholesale charges, click on the item under Special Projects. A CSV file that contains the details of each shipment is available for download.
Return to Sender shipments
If a shipment can't reach its final destination, then the shipping carrier returns 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. Learn more about how to access your SFN charges.
Value-added special projects
You can request that the fulfillment center complete value-added special projects 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 complete, this cost is displayed on your SFN invoice.
Learn more about submitting special projects.