Prices and fees for Shopify Fulfillment Network services in Canada
Depending on the type of charge, Shopify Fulfillment Network (SFN) charges are added to your Shopify bill at different frequencies:
- at the end of the day
- at the end of the calendar month
For example, all your pick and pack fees for a day are added to your Shopify bill the next day, while all your storage fees for a month are added at the end of that calendar month.
You can access definitions for your fees and charges in the SFN app by going to Charges > Pricing.
Summary of pricing and fees in Canada
The following table describes SFN fees and their billing frequency in Canada.
|Pick and pack||Pick and pack fees are charged on each order that's fulfilled. Pick and pack fees are charged for the first pick, and for each additional pick on orders that contain more than one item.||Daily|
|Packing supplies||Fees for packing supplies are charged on each order that's fulfilled. These fees include the cost of standard mailers, boxes, and other supplies that are used to pack each order.||Daily|
|Transportation||Transportation fees are charged on each shipment that's made using SFN services. Fees depend on the shipping method and billable weight.||Daily|
|Storage||Storage fees are calculated by multiplying the total volume of variants in cubic feet, the number of variants, and the storage rate. Storage fees are calculated and recorded nightly on the SFN statement. These fees are grouped together and submitted to Shopify billing monthly at the end of the SFN billing cycle.||Monthly|
|Special projects||If a special project requires additional work by SFN personnel that isn't included in the pick and pack fees, then you're charged an hourly fee.||Monthly|
Pick and pack fees
When a customer places an order, SFN picks the items that were ordered and packages them. Pick and pack fees are charged per fulfillment. Each fulfillment is charged a first pick fee, and fulfillments that contain multiple items are charged additional pick fees for each additional item.
Packing supplies fees
Packing supplies fees cover the cost of the supplies that are needed to pack each fulfillment. These fees are charged per fulfillment. The cost varies according to the type and size of packaging that's used for each order.
Transportation fees are the shipping rates that are charged per shipment. Transportation fees 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, which is determined by the shipping service that the customer selects at checkout
- the billable weight of each package
- the destination shipping zone for the order
Billable weight is determined based on the following measurements:
You're billed for whichever type of weight is higher because both weight and size are important factors for shipping carriers. Weight affects transportation factors such as fuel costs and which vehicles can be used. Size affects 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 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 that's determined by each carrier. For example, the dimensional divisor is 139 for shipments that originate in Canada.
In Canada, SFN uses zone-based pricing to help determine the cost of shipping your orders. In zone-based pricing, Canada is divided into geographical zones, and a shipment's shipping cost is calculated based on the destination shipping zone for the order.
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, the number of variants, and the storage rate. Storage fees are calculated daily based on inventory counts, but they are charged monthly on your SFN billing cycle.
Storage fees are only charged on available inventory. Available inventory is the inventory that's stored at a fulfillment center. Available inventory includes allocated inventory, which is inventory that's been reserved to fulfill orders, but that hasn't left the fulfillment center.
Storage fees aren't charged on inventory during the receiving process, backordered inventory, and other inventory counts.