ShipBob Pricing Calculator
An unofficial tool to estimate your monthly e-commerce fulfillment costs with a 3PL like ShipBob.
Cost Breakdown & Analysis
The following table and chart illustrate how your total estimated costs are distributed among the main service categories. This helps you understand where your money is going.
Monthly Cost Distribution
| Cost Component | Calculation Logic | Estimated Monthly Cost |
|---|---|---|
| Storage Cost | 10 bins, 1 shelf, 1 pallet | $100.00 |
| Pick & Pack Cost | 500 orders, 1.5 items/order | $0.00 |
| Shipping Cost | 500 orders at 1.2 lbs | $3,400.00 |
| Total Monthly Cost | Sum of above | $3,500.00 |
What is a ShipBob Pricing Calculator?
A ShipBob pricing calculator is a tool designed to help e-commerce businesses estimate their potential costs when using a third-party logistics (3PL) provider like ShipBob. Fulfillment costs are not a single line item; they are a combination of several services, including receiving inventory, storing it, picking items for an order, packing them, and the actual shipping postage. This calculator models these core components to provide a close approximation of your monthly bill.
This tool is for anyone from a startup to an established online retailer who wants to understand the financial implications of outsourcing their logistics. Common misunderstandings often arise from not accounting for all cost components. For example, business owners may focus on shipping rates but forget to budget for monthly storage fees or the per-item “pick fees” that apply to orders with multiple items. This calculator aims to demystify that by breaking down each part of the pricing structure.
ShipBob Pricing Formula and Explanation
While ShipBob’s exact pricing is customized, we can model it using a general formula. The total cost is a sum of recurring monthly charges and potential one-time fees.
Total Cost = (Storage Cost) + (Pick & Pack Cost) + (Shipping Cost) + (Receiving Cost)
Each component of this formula is broken down further based on your specific inputs. Understanding these variables is key to managing your fulfillment expenses effectively.
| Variable | Meaning | Unit / Type | Typical Range |
|---|---|---|---|
| Receiving Cost | Fee to accept and process inbound inventory. | USD ($) | $35+ (based on time) |
| Storage Cost | Monthly fee for space your products occupy. | USD ($) per bin/shelf/pallet | $5 (bin), $10 (shelf), $40 (pallet) |
| Pick & Pack Cost | Cost for each item picked from a shelf. Often includes a base number of free picks per order. | USD ($) per pick | $0.20 – $0.26 per additional pick |
| Shipping Cost | The actual cost of postage from carriers like USPS, UPS, FedEx. | USD ($) per order | $5 – $15+ (weight & zone dependent) |
Practical Examples
Example 1: Small Apparel Brand
A small company sells t-shirts. They have 300 orders a month, with an average of 1.2 items per order. They only need 5 bins for storage and the average package weighs 0.8 lbs.
- Inputs: 300 orders/mo, 1.2 items/order, 5 bins, 0 shelves, 0 pallets, 0.8 lbs/order.
- Storage Cost: 5 bins * $5/bin = $25/month.
- Pick & Pack Cost: Since ShipBob often includes 1-4 free picks, and the average is only 1.2, this cost might be $0.
- Shipping Cost: 300 orders * ~$6.50/order (lightweight) = $1,950/month.
- Estimated Result: Approximately $1,975 per month.
Example 2: Subscription Box Business
A subscription box company ships 1,000 boxes per month. Each box has 5 items. They require 3 pallets of storage, and the average box weighs 4 lbs.
- Inputs: 1,000 orders/mo, 5 items/order, 0 bins, 0 shelves, 3 pallets, 4 lbs/order.
- Storage Cost: 3 pallets * $40/pallet = $120/month.
- Pick & Pack Cost: 1,000 orders * (5 items – 4 free picks) * $0.25/pick = $250/month.
- Shipping Cost: 1,000 orders * ~$9.50/order (heavier weight) = $9,500/month.
- Estimated Result: Approximately $9,870 per month.
How to Use This ShipBob Pricing Calculator
- Enter Your Order Volume: Input your total number of orders per month and the average number of distinct items in each order. This is crucial for calculating pick fees.
- Define Storage Needs: Estimate how many bins, shelves, or pallets your inventory requires. This determines your fixed monthly storage cost.
- Set Average Weight: Input the average weight of a fully packed customer order. This is a primary factor in determining shipping costs.
- Add Receiving Time: For a new inventory shipment, estimate the hours required to unload and process it. This is a one-time fee.
- Review Your Results: The calculator will instantly update your total estimated monthly cost, along with a breakdown of storage, pick/pack, and shipping expenses. Use the chart and table to see where your costs are concentrated.
Key Factors That Affect ShipBob Pricing
Several factors can significantly influence your final fulfillment bill. Being aware of them can help you optimize your logistics strategy and reduce costs.
- Order Volume: Higher monthly order volumes can sometimes lead to lower per-order costs or eligibility for better pricing plans.
- Items Per Order: The more items in an order, the higher the pick and pack fees, as most 3PLs charge for each additional item picked after a certain threshold.
- Storage Footprint: The physical space your inventory occupies (measured in bins, shelves, or pallets) directly translates into a fixed monthly cost.
- Product Weight and Dimensions: Shipping carriers use dimensional weight (DIM weight) and actual weight to calculate postage. Bulky, lightweight items can be surprisingly expensive to ship.
- Shipping Destinations (Zones): The farther a package travels, the higher the shipping zone and cost. Distributing inventory across multiple fulfillment centers can reduce average shipping zones and costs.
- Special Projects: Services like kitting (bundling products), custom packaging, or B2B/wholesale order preparation are not standard and will incur additional fees.
Frequently Asked Questions (FAQ)
1. Are the prices in this calculator exact?
No. This is an estimation tool based on publicly available pricing information. ShipBob’s actual pricing is customized and requires a formal quote. This calculator provides a budget-level estimate to guide your decision-making.
2. What is a “pick fee”?
A pick fee is a charge for pulling a single item (a SKU) from a shelf to include in an order. ShipBob’s pricing often includes a set number of picks (e.g., the first 4) for free, and then charges for each additional pick in the same order.
3. Does ShipBob charge a software fee?
No, ShipBob’s proprietary fulfillment software, which includes order management and analytics, is typically free for all customers. The costs are associated with the physical services rendered.
4. Are packaging materials included?
Yes, ShipBob includes standard, plain packaging materials (boxes, mailers, dunnage) in their fulfillment cost. If you wish to use your own custom-branded packaging, there may be an additional handling fee.
5. How is storage cost calculated?
Storage is charged monthly based on the type and quantity of storage locations your inventory occupies. The common units are bins (for small items), shelves (for medium items), and pallets (for bulk inventory).
6. What are receiving costs?
This is a labor-based fee for accepting, unpacking, and stowing your incoming inventory. ShipBob typically charges a flat rate for the first two hours and an hourly fee thereafter.
7. How can I lower my shipping costs?
The best way is to use distributed inventory. By storing your products in multiple ShipBob fulfillment centers across the country, you can ship from the warehouse closest to the customer, which lowers shipping zones, transit times, and costs.
8. Does this calculator include international shipping?
This calculator is optimized for domestic shipping. International shipping costs are significantly more complex, involving different carriers, tariffs, and taxes, and must be quoted directly.