Warehouse pricing
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.
Storage Pricing
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.
- Less than 60 cu ft of average volume per day. - $.04 per cu ft
- More than 60 cu ft of average volume per day. - $.03 per cu ft
Your storage rate is assessed based on the volume of items you store across ALL Apliiq factories.
Storage Billing
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 $0.04 for 30 cu/ft. If you use 300 cu/ft for only half of the month, your average daily rate will be 150 cu/ft and your rate will be $0.03. 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 for 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.
* - Please note that all merchandise products, custom packaging and pack-in supplies sent in to Apliiq will be charged the appropriate fee after being picked to leave our facilities, whether that is during fulfillment for customers' paid orders of or being returned to our brand partner.
Receiving Costs
Receiving your products into the factory is completely free as long as you follow our standard guidelines.
Custom projects
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.
Will Apliiq Return Unsold Merchandise and Unused Brand Supplies
While it is possible to request Apliiq ship back any unsold merchandise or unused supplies to a brand partner, Apliiq will charge the appropriate pick fee for every item and product being sent back to you. Those fees again are $0.95 for each merchandising item and $0.50 for each packaging & pack-in item to be picked and shipped back to you.
So we strongly recommend our partners think carefully about the inventory levels you are sending in to Apliiq in the first place as it can be expensive to have 200 unused bags, thank you cards and other supplies be sent back to you. These pick fees do not also include the shipping fees that would apply as well but those will all be quoted individually.
Apliiq is also happy to dispose of any unsold merchandise or unused branding supplies should the cost to return them prove to be too high.
Billing Examples
- In the example above, if you use 30 cu ft per day for 30 days, your storage rate will be $0.04 per cubic foot. Over the course of the month, you used 30 cu ft X 30 days = 900 cu ft X $0.04 = $36.00.
- In the other example above, if you use 30 cu ft per day for 15 days, your storage rate will be $0.04 per cubic foot. Over the course of the month, you used 30 cu ft X 15 days = 450 cu ft X $0.04 = $18.00.
- Another example, you are using 0.5 cu ft per day for 30 days for your packaging, your rate will be $0.04 per cubic foot. Over the course of a 30 day month, you used 0.5 cu ft X 30 days= 15 cu ft X $0.04 = $0.60. However, you will be billed the $10 monthly minimum.
- Final example, you send in 250 thank you cards, 250 hang tags and 250 poly mailer bags to our 2 facilities. Unfortunately, you overestimated the number of packaging and pack-ins your brand would need to fulfill orders placed and only 50 of each item were used during order fulfillment and so now you still have 200 thank you cards, 200 hang tags and 200 poly mailer bags left. And with the slower order volume, you would like them all to be shipped back to you to better help out your POD profit margins. In this example, 600 items to pick multiplied by the $0.50 per item pick fee comes to a total of $300 due for Apliiq to pick the items, and that doesn't include the shipping costs either.
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:
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