### Onboarding and Integration Fees Before Red Stag can ship your products, your online store’s e-commerce platform or Enterprise Resource Planning (ERP) system must integrate with their warehouse management software. This setup process may involve an onboarding fee. This fee covers the technical alignment, software integration, and testing required to ensure orders flow automatically from your store to the fulfillment center. ### Receiving Fees Receiving is the process of accepting inventory from your manufacturer or supplier, inspecting it for damage, counting the items, and logging them into the warehouse system. Red Stag typically charges for this service based on the time or volume involved. Common billing methods include: * **Per-pallet rates:** A flat fee for every pallet received and processed. * **Hourly rates:** A fee based on the labor hours required to unload and log loose containers or complex shipments. ### Warehousing and Storage Fees Once your inventory is received, it is placed in storage. Storage fees are charged monthly and are determined by the amount of space your products occupy. Because Red Stag specializes in larger, heavier items, they calculate storage costs using: * **Pallet storage:** A monthly fee per pallet. * **Cubic footage:** A fee based on the total volume (length x width x height) your inventory occupies on shelves or in bins. Storage fees can fluctuate seasonally. Some 3PLs adjust rates during peak seasons (such as the fourth quarter) when warehouse space is in high demand.
### Pick and Pack Fees When a customer places an order on your online store, warehouse staff must locate the items (picking) and package them securely (packing). Pick and pack pricing is usually structured as: * **Base order fee:** A standard charge to fulfill the first item in an order. * **Additional item fee:** A smaller, incremental charge for each additional item included in the same shipment. If your products require special packaging, custom inserts, or kitting (assembling multiple items into a single unit before shipping), additional labor fees will apply. ### Shipping Rates Shipping is often the largest component of fulfillment pricing. Red Stag negotiates discounted shipping rates with major carriers like FedEx, UPS, and USPS due to the high volume of packages they send. They pass these savings on to merchants. Your shipping costs will depend on: * **Package weight and dimensions:** Carriers charge based on actual weight or dimensional weight (the space a package occupies), whichever is greater. * **Shipping zones:** The distance between the fulfillment warehouse and the customer’s delivery address. Red Stag operates multiple warehouse locations to help merchants distribute inventory closer to their customer base, which reduces shipping distances and costs.
## Additional Fees and Special Services Depending on your business model, you may encounter other charges that affect your total fulfillment invoice. ### Returns Processing (Reverse Logistics) When customers return items, the fulfillment center must receive the package, inspect the product to determine if it can be resold, and either return it to inventory or dispose of it. Returns processing is typically billed per returned order, plus any repackaging fees if the original box is damaged. ### Kitting and Assembly If you sell subscription boxes, product bundles, or items that require light assembly before shipping, Red Stag offers kitting services. These services are billed based on the labor time required to prepare the kits.
## How to Request a Quote and Verify Pricing Because Red Stag does not offer public flat-rate pricing, you must contact their sales team to receive a customized proposal. To get the most accurate quote, you should prepare the following information about your online store: * **Average monthly order volume:** How many orders you ship each month. * **Product specifications:** The weight, dimensions, and packaging requirements of your items. * **SKU count:** The total number of unique product variations you stock. * **Inventory turnover rate:** How quickly your stock sells and needs replenishment. * **Inbound shipment methods:** Whether your inventory arrives on organized pallets or as loose cargo in shipping containers. Once you receive a proposal, review the service level agreements (SLAs) carefully. Red Stag is known for offering guarantees on accuracy and processing times, such as promising refunds or compensation if they make an error in receiving or shipping. Make sure these guarantees are clearly outlined in your contract. ## Factors That Influence Your Total Costs
Your overall fulfillment costs will vary based on your operational efficiency. For example, keeping slow-moving inventory in the warehouse will increase your monthly storage fees without generating sales revenue. Similarly, shipping large items in oversized boxes can trigger dimensional weight surcharges from carriers. Working closely with your fulfillment partner to optimize packaging and inventory levels is essential for keeping costs manageable. To ensure you have the most current pricing structure and policy details, always verify terms directly with a Red Stag representative, as carrier rates and warehouse policies change periodically.
