When growth hits, logistics become too important to leave unexamined. Outsourced fulfilment can deliver speed, accuracy and scalability, but only if the costs are understood clearly. In this guide, I will walk you through the variables that affect fulfilment pricing in the UK, the different tiers of service, and how Diamond Logistics positions its value.
The Variables That Influence Fulfilment Cost
Outsourced fulfilment cost can vary considerably. Here are the main factors that determine your costs and how they work together in real terms.
Warehouse rent and staffing costs, which differ by location, have a significant impact on your final price. This includes rent, utilities and security associated with maintaining controlled and structured fulfilment space. Regional fulfilment hubs in less expensive areas tend to offer better pricing than centres in high cost regions.
The amount of space your inventory occupies plays a large role in your monthly bill. Some providers invoice by pallet or cubic metre. If your stock dwells for longer periods or peaks seasonally, storage fees can rise during high demand months.
Fulfilment also includes labour costs for order processing. Each order or item you send incurs a picking and packing fee. The complexity of packaging and volume tiers determines those prices. Businesses often mention £23 per shipment as a benchmark, though prices vary based on order size and packing requirements.
Shipping cost depends on parcel weight, destination, and the carrier used. Sameday or overnight deliveries command higher rates. Delivery method choices influence your bottom line.
Returns management is another variable. Returned products need inspection, restocking or disposal, plus data updates. Each action adds to the labour and system costs of your fulfilment.
Slow-moving inventory matters too. Inventory that stays longer improves storage usage costs and can trigger surcharges.
Overhead costs such as account management, platform access or warehousing systems may also apply in some fulfilment models.
Understanding Fulfilment Pricing Tiers
UK fulfilment costs are often organised into several service tiers. Here is how they typically shape up, using insights from both industry sources and Diamond Logistics examples.
Basic storage and despatch typically include pay as you go stock storage, pick and pack by unit, and shipping via standard carriers. Some providers pledge costs starting around £23 per shipment.
Mid tier fulfilment adds integration efficiencies, such as real-time order handling, access to multiple carriers, and technology-driven dashboards.
Premium tiers may include branded packaging, custom kitting, returns processing, and priority shipping services. Each extra adds business utility but also increases costs, reflecting that enhanced experience and faster delivery.
Pricing Examples from Diamond Logistics
Diamond Logistics follows a fair, transparent model. You pay for actual storage space in square metres, per pick and pack, plus delivery fees. This means you only pay for the services you use rather than a blanket rate.
A realistic shipment may start at around £23 per order, depending on product size and volume. However, each business is quoted based on specifications such as product weight, dimensions, needed courier service, and complexity of packaging and fulfilment workflow.
Diamond ensures that expensive products are shipped with appropriate care, so high value shipments are placed on tracked services only, not economy options.
Why Outsourcing Is Often More CostEffective
Managing fulfilment yourself means investing in warehouse rental, racking, warehouse technology, hiring staff, insurance, and equipment. That may work for high-order volumes year round, but smaller or growing businesses can find swift relief in outsourcing.
Diamond Logistics provides economies of scale. Rather than investing in logistics infrastructure that sits idle for months, you pay only when this function is active. Additionally, transitions during scaling or seasonal fluctuations are handled without pain or wasted resources.
The Location Advantage and Fulfilment Cost
Fulfilment location strongly affects your cost and delivery speed. Being closer to your customer base reduces delivery time, improves returns turnaround and lowers outward shipping costs.
Diamond’s multi-centre network enables strategic placement of stock to balance cost and efficiency. For franchises in the Midlands or North West, this often results in significant savings compared with shipping all orders from London or the South East.
If You Want to Calculate Cost Per Order
One useful metric is fulfilment cost per order. To estimate that, compile total fulfilment expenses for a period and divide by the number of orders processed. That includes storage, labour, shipping, packaging, returns, overhead and systems costs.
Industry figures suggest typical values between £4.50 and £6.50 per order for SMEs. Keeping your cost of fulfilment per order below that benchmark can help preserve profit margins.
Summary
Outsourced fulfilment cost depends on storage space, order complexity, shipping speeds, location, return flows and technology access. Diamond Logistics builds clear, bespoke cost models based on your specifics rather than hidden fee structures. That means better budgeting and confident scaling.
High-margin brands understand the value of trusted logistics that move fast and scale easily. If fulfilment feels like a black hole, it may be time to look at the numbers and the partner that makes sense of them.
