Picking the Correct Warehouse:
To store and fulfill your inventory, CALA has a global network of warehouses to choose from. Choosing the right warehouse(s) generally comes down to two factors:
Where your business is registered.
Where your customer demographic is located.
As part of the onboarding process, your dedicated Fulfillment and Logistics Specialist works with you to develop a warehousing/fulfillment plan that is tailored to your needs.
The cost to ship an item from a warehouse to a customer is typically broken down into 3 pieces: Pick, Pack and Ship. Storage and Packaging are the two other components of fulfillment costs.
Pick/Pack: Generally, pick and pack fees are bundled together. This is the cost to pay a warehouse worker to pick an item from inventory and pack it into a box or polymailer. Generally, this is charged as a flat rate for the first item picked, then an additional fee for each additional item in an order. For example, a common pick/pack fee structure is $2.39 for the first item, then an additional $0.59 for each additional item. Generally, warehouses will charge less to pick a sticker or marketing insert than they will to pick an additional t-shirt or article of clothing. It is safe to assume that for most of our customers, pick/pack fees will be $2.50 per order on average.
Ship: The cost of the shipping label. This varies based on the origin and destination locations, as well as the weight and dimensions of the package. Shipping something from CA to CA will be less expensive than shipping something from CA to NY. Shipping a t-shirt will be less expensive than shipping a hoodie. Generally, we estimate that the cost of a shipping label will be around $6-$7 for a t-shirt and $8-$10 for a hoodie. When you add the above pick/pack/ship estimates together, you end up with rough estimates that it will cost about $8-$9 to ship a t-shirt and $10-$11 to ship a hoodie.
Storage: For the average collection of 1000 products, we'd estimate monthly storage to be around $150. This will vary based on item size and SKU count. Please contact your CALA F&L specialist for a storage estimate based on collection size. The information required for an estimate is: SKU Count & Type Total Item Count
10% Fulfillment Fee: As part of CALA's fulfillment offering, we provide customer service to your customers for orders that we're overseeing. To support that service, we add 10% to your monthly fulfillment bill.
For more info, on our pricing plans. Please see the CALA pricing plans page.
Pick (first item)
Pack (any additional items in the order)
Storage (per Cubic Feet)
$0.40 - $1.50
Special Projects (per Hour)
*The first 100 units of a given SKU are billed at 4x the literal volume, and the remainder at 1.5x to account for inventory complexity at scale.
CALA works with you to set up your E-Commerce store to collect the proper amount of shipping from your customers. This means that any funds that you collect from customers for shipping are deposited into your account.
CALA pays our fulfillment warehouses directly on your behalf in order to fulfill orders to your customers. Every month we will send you an invoice for your fulfillment costs to store your inventory and send orders to your customers.
While the amount that you collect from your customers for shipping may not perfectly match your fulfillment bill, CALA's goal is to work with you to set up your shipping collection methods to match or slightly exceed the cost of fulfillment. Your CALA Fulfillment and Logistics Specialist will estimate your monthly storage, and outbound pick/pack/ship fees based on your collection size, and the average size of the items in that collection. Your CALA F&L Specialist will then work to adjust your E-Commerce shipping settings to collect the appropriate amount from your customers, whether that is working with you to establish retail prices for your items that build-in shipping, or setting up rules to charge customers shipping at checkout. Check out our article on Offering Free Shipping vs. Shipping at Checkout.
When your customers place an order on your website, it is our job to fulfill that order and send the items to your customer. In order to do that, we integrate your website with the warehouse where their goods are stored, so that the orders are automatically transmitted to the warehouse, and the warehouse ships the goods to the end customer.
Currently, we support the following E-Commerce platforms:
In this article, we have covered the specific costs that are associated with fulfillment when you are participating in a plan that includes CALA Fulfillment. Please see here for our pricing plans.