Setting Up Fulfillment & Packaging Fees

Last updated: January 30, 2026

Fulfillment and packaging costs are critical for accurate profit calculations, especially if you work with a 3PL (third-party logistics) or fulfillment provider who processes orders on your behalf.

Navigate to Settings > Order Costs > Fulfillment to begin configuring your fees.

Available Methods

StoreHero offers two methods to track fulfillment and packaging costs:

  1. Simple Method - For fixed costs that don't change with order volume

  2. Variable Method - For tiered pricing based on number of items per order

Understanding the Cost Structure

Both methods allow you to set costs that apply per order and/or per item. This typically includes:

Fulfillment Costs:

  • Base cost per order (usually includes the first product)

  • Cost per additional product

Packaging Costs:

  • Base cost per order (usually includes the first product)

  • Cost per additional product

Important: All values should be entered excluding sales tax (e.g., VAT, GST).

Simple Method

Use the simple method when your fulfillment provider charges fixed rates regardless of order volume.

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When to Use This

This method works well if:

  • Your costs remain consistent across all order sizes

  • You have straightforward per-order and per-item pricing

  • Your provider doesn't offer volume-based discounts

Setting Up Fulfillment Costs

  1. Navigate to Settings > Order Costs > Fulfillment

  2. Ensure Simple method is selected

  3. Enter your fulfillment costs:

    • Base Cost Per Order - The fulfillment charge for each order 

    • Cost Per Additional Product - The charge for each additional item in the order

Example: Your fulfillment provider charges €4 per order and €0.40 for each additional item.

  • Order with 1 item: €4.00 fulfillment cost

  • Order with 3 items: €4.80 fulfillment cost (€4 + €0.40 + €0.40)

Setting Up Packaging Costs

In the same section, enter your packaging costs:

  • Base Cost Per Order - The packaging charge for each order 

  • Cost Per Additional Product - The charge for each additional item in the order

Example: Your packaging costs €1 per order and €0.10 for each additional item.

  • Order with 1 item: €1.00 packaging cost

  • Order with 2 items: €1.10 packaging cost (€1 + €0.10)

Finalizing Simple Method

  1. Review your entered costs

  2. Click Save Changes

Your fulfillment and packaging costs will now be automatically calculated for all orders based on the number of items.

Variable Method

Use the variable method when your fulfillment provider offers different pricing tiers based on order volume.

When to Use This

This method works well if:

  • Your provider offers volume-based discounts

  • Costs change based on number of items per order

  • You have different rates for small vs. large orders

Example Use Case: Your provider charges one rate for orders with 1-5 units, but offers discounted pricing for orders with 6-10 units.

How to Enable Variable Method

  1. Navigate to Settings > Order Costs > Fulfillment

  2. Click the Variable option

  3. Click Save Changes to save this calculation method

Adding Cost Tiers

Once the variable method is enabled:

  1. Click the Add Costs button

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  2. A popup will appear with the following fields:

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Unit Range:

  • Min Units - Minimum number of items for this tier (e.g., 1)

  • Max Units - Maximum number of items for this tier (e.g., 5)

Fulfillment Costs for This Tier:

  • Base Fulfillment Cost Per Order - The fulfillment charge for orders in this range

  • Fulfillment Cost Per Additional Product - The charge for each additional item beyond the first

Packaging Costs for This Tier:

  • Base Packaging Cost Per Order - The packaging charge for orders in this range

  • Packaging Cost Per Additional Product - The charge for each additional item beyond the first

  1. Click Submit to save this tier

Creating Multiple Tiers

Repeat the process to add additional tiers for different order volumes.

Example Setup:

Tier 1: Orders with 1-5 items

  • Min Units: 1

  • Max Units: 5

  • Base Fulfillment Cost: €4.00

  • Fulfillment Cost Per Additional Product: €0.40

  • Base Packaging Cost: €1.00

  • Packaging Cost Per Additional Product: €0.10

Tier 2: Orders with 6-10 items (discounted)

  • Min Units: 6

  • Max Units: 10

  • Base Fulfillment Cost: €3.50

  • Fulfillment Cost Per Additional Product: €0.30

  • Base Packaging Cost: €0.90

  • Packaging Cost Per Additional Product: €0.08

Tier 3: Orders with 11+ items (further discounted)

  • Min Units: 11

  • Max Units: 999 (or leave blank for unlimited)

  • Base Fulfillment Cost: €3.00

  • Fulfillment Cost Per Additional Product: €0.25

  • Base Packaging Cost: €0.80

  • Packaging Cost Per Additional Product: €0.05

How Variable Pricing Works

StoreHero automatically applies the correct tier based on the number of items in each order:

  • Order with 3 items → Uses Tier 1 pricing

  • Order with 8 items → Uses Tier 2 pricing

  • Order with 15 items → Uses Tier 3 pricing

Switching Between Methods

You can switch between Simple and Variable methods at any time:

  1. Navigate to Settings > Order Costs > Fulfillment

  2. Select your desired method (Simple or Variable)

  3. Click Save Changes

Note: Switching methods will preserve your data, but only the active method will be used for calculations.

Best Practices

For Simple Method

  • Verify rates with your fulfillment provider before entering

  • Update costs when your provider adjusts pricing

  • Double-check that values exclude VAT/GST

For Variable Method

  • Ensure your tiers don't have gaps (e.g., 1-5, 6-10, 11+)

  • Order tiers logically from smallest to largest

  • Review tier performance periodically to optimize pricing

General Tips

  • Test with a few sample orders to verify calculations

  • Update costs immediately when provider rates change

  • Keep records of your provider's fee schedules for reference

Don't Forget to Save

After making any changes to your fulfillment and packaging settings, always click the Save Changes button to ensure your updates are applied.

Need Help?

If you have questions about setting up fulfillment and packaging costs or determining which method to use, our support team is here to help. Contact us at support@storehero.ai