Understanding your costs is an important aspect to any business venture. As you evaluate if warehousing your products or packaging is the right option for your brand, you will want to have good visibility with regards to what to expect regarding costs. Warehousing pricing has 3 elements:
- Storage costs
- Pick, pack, and ship fees
- Custom projects
Minimum Monthly Fee
There is a monthly minimum fee for using warehousing services which is $10 per month per warehouse. If your storage fees do not reach $10 in a given month, you will be billed the $10 minimum monthly fee. For example, if you want both Los Angeles and Philadelphia to use your packaging, each warehouse location has a $10 per month minimum storage fee.
Apliiq charges a storage fee, which is the price you pay to store your products, pack-ins, and packaging. Storage prices have a built in volume discount based on the average amount of storage you use over the month, so as your storage needs grow it becomes effectively cheaper to store your goods, as you can see in the table below.
Your storage rate is assessed based on the volume of items you store across ALL Apliiq factories.
Storage is tracked on a daily basis and billed monthly. The storage space of all your items is added up for the month, then divided by the number of days in the month to find your average daily usage, which determines your storage rate for that month.
For example, if you use 30 cu/ft all month, your average daily rate will be $0.37 for 30 cu/ft. If you use 30 cu/ft for only half of the month, your average daily rate will be 15 cu/ft and your rate will be $0.40. Average daily usage is calculated by adding up all cubic feet used each day over the course of the month, then dividing by the number of days in the month to get the daily average.
Storage usage is only added to your account the day products are received into the Apliiq facility by our team. Storage usage is based on the amount of space your items occupy within the warehouse and our team will select storage bins that are the best size for your items.
In order to ensure picks are completed quickly and efficiently, SKUs maybe divided into their own storage bins. From time to time, the warehouse team may separate or combine SKUs into locations to ensure the warehouse is optimized. Storage is removed from your account when all items are removed from from their storage locations.
An invoice is generated for each warehouse and billed to your payment method the first day of the following month.
Pick, Pack, And Shipping Fees
Each time we fulfill an order you are charged a pick, pack, and ship fee. The fees are as follows;
- $2.00 - Pick and Pack Fee for each order
- $0.95 - each merchandise item
- $0.50 for each pack-in
- $0.50 for each custom packaging
Pick and pack fees are tracked throughout the month and are billed the following month.
Receiving your products into the factory is completely free as long as you follow our standard guidelines.
From time to time, or as scenarios warrant, you may need help with special projects with your products, pack ins, or packaging. All special projects are billed at $45.00 per hour and the minimum is 1 hour.
- In the example above, if you use 30 cu ft per day for 30 days, your storage rate will be $0.37 per cubic foot. Over the course of the month, you used 30 cu ft X 30 days = 900 cu ft X $0.37 = $333.00.
- In the other example above, if you use 30 cu ft per day for 15 days, your storage rate will be $0.40 per cubic foot. Over the course of the month, you used 30 cu ft X 15 days = 450 cu ft X $0.40 = $180.00.
- One last example, you are using 0.5 cu ft per day for 30 days for your packaging, your rate will be $0.45 per cubic foot. Over the course of a 30 day month, you used 0.5 cu ft X 30 days= 15 cu ft X $0.45 = $6.75. However, you will be billed the $10 monthly minimum.
How to Access Billing Reports
Your warehouse usage reports are available directly within your Apliiq account under warehouse > billings.
It's easy to filter the report to any prior month. The report defaults to the current month, which extrapolates your current usage throughout the entire month. See the below example for the warehouse usage report: