Understanding Fulfillment Cost

fulfillment cost

Jeff Bezos took part in an interview recently in which he outlined his strategy for dealing with order Fulfillment problems on his own Amazon account. Yes you read that correctly, Jeff Bezos buys items on Amazon just like everyone else and the Fulfillment centre even messes up his orders from time to time!

Bezos and Order Fulfillment

Anyway, after confirming that he did in fact buy items from his own company, the CEO was asked how he reacted when there was a fault with an order. In response, Bezos stated that he requested a case study for each of these instances and for management to identify a solution to improve Fulfillment services.

But why should Amazon go to so much trouble?

After all, Amazon sells 306 products every second and one order surely has no impact on cash flow.

But it does, and here’s why….



For many businesses, order Fulfillment is a means to an end. In other words, the business is satisfied as long as the product reaches a buyer within the time agreed. However, there are many aspects which impact this time frame, and the quality of packaging or shipping is critical to the customer experience.

You see, Amazon loses money any time an order goes astray but it also loses reputation when customers leave 2-star reviews for late deliveries. Potential customers are heavily influenced by these reviews and existing customers are inevitably disappointed when the order is not fulfilled as agreed. As if that’s not enough, substandard packaging or inefficient shipping is more than enough to dissuade repeat customers.

For this reason, order Fulfillment has a huge impact on revenue.



At the same time, there is always a reason and means to improve order Fulfillment services.

According to Bezos, by fixing a problem with one order, you are fixing a potential problem for every customer in the future. In fact, Jeff is always quick to point out how this dedication to customer service is one of the core factors which enabled Amazon to achieve so much success.

With this in mind, you should know that when you enhance the efficiency and accuracy of logistics, you create a more satisfying experience for the customer. For example, if you don’t already have live reporting as part of order Fulfillment, this is most definitely something that can streamline the process.

However, there are many ways to skin a cat…

Outsourcing your storage can save time and money, while efficient shipping and returns can improve customer service. During busy periods, it’s also important to have a system that can check orders against your inventory to ensure everything is picked, packed, and shipped as intended.


At its core, order Fulfillment is just as important as any marketing and production efforts, and the improvement of this process can help the business become more profitable. It’s true, improving any process requires either time or money but it’s important to look past the cost and realise that order Fulfillment is an opportunity to provide more value to customers and increase revenue in the long term.

If you would like to talk to our team about your Order fulfillment or pick and pack rates, please call us on: +353 1 541 5460 or email: sales@autofulfil.com.