The rest of this guide explains each line so you can compare any provider’s quote, including ours.
Figures use MaxCommerce’s published rates, excluding VAT, as of the date above. Other providers price differently; use the checklist at the end to compare like with like.
The seven cost lines
1. Storage
Charged for the space your stock takes, usually per cubic metre (CBM), per pallet or per shelf, per month. Per-CBM pricing suits ecommerce because you pay for the actual volume, not a whole pallet you half fill. Ours: AED 120 per CBM per month, no minimum monthly charge.
2. Receiving (inbound handling)
Unloading, counting and putting stock away. Some providers charge per carton, per pallet or per hour; some per CBM. Ours: AED 35 per CBM, one-time, covering handling in and out.
3. Pick and pack
The labour of collecting items and packing the order. Usually a per-order fee plus a per-item fee above a threshold. Ours: AED 2–6 per order for up to two items, AED 0.5 per additional item.
4. Packaging materials
Boxes, mailers, void fill, tape. Charged at cost, as a fixed fee per order, or supplied by you. Ours: at actual cost, or your own branded packaging.
5. Last-mile delivery
Usually a base price for a weight band plus a per-kg rate above it. This is the biggest line for almost every ecommerce brand. Ours: AED 18 up to 5 kg, AED 2 per additional kg.
6. Cash on delivery
Some providers charge a COD fee per parcel or a percentage of the cash collected; others include it. Ours: tracking is included in the delivery rate; COD collection is 2.5% of the cash collected.
7. Returns
Receiving, inspecting and restocking returned parcels. Often a per-item fee. Ours: priced on your rate card, based on your volumes and inspection rules.
Worked example
Illustrative, not a quote. A brand ships 300 orders a month; 30 of them have three items; all are under 5 kg; it holds 8 CBM of stock.
| Line | Calculation | Monthly (AED) |
|---|---|---|
| Storage | 8 × 120 | 960 |
| Pick & pack | 300 × 2–6 | 600 – 1,800 |
| Additional items | 30 × 0.5 | 15 |
| Delivery | 300 × 18 | 5,400 |
| Total | 6,975 – 8,175 | |
| Per order | 23.25 – 27.25 |
One-time handling: 8 × 35 = AED 280. Packaging at cost.
Delivery is between about two-thirds and three-quarters of the total. That is why the weight bands and the COD terms in a quote matter more than the storage rate. You can try your own numbers with the estimator on the pricing page.
What changes your cost
- Parcel weight. Every kilogram over 5 kg adds AED 2 with us. Right-size your packaging: a box that is too big pushes up both weight and volume.
- Items per order. More items per order lowers the cost per item shipped.
- Stock turnover. Slow-moving stock costs storage every month. Holding three months of a best-seller is usually cheaper than warehousing slow lines for a year.
- Packing complexity. Multiple inserts and kits take longer to pack.
- Returns and refusals. A refused COD parcel costs a delivery with no sale.
Hidden costs to ask about
When comparing providers, ask for every item below as a separate line:
- Setup or onboarding fee
- Minimum monthly charge or minimum order volume
- Receiving: per carton, pallet, hour or CBM?
- Labelling, barcoding or relabelling fees
- Packaging: included, fixed fee or at cost?
- COD fee: per parcel or a percentage?
- COD remittance timing
- Failed delivery, re-attempt and return-to-origin charges
- Returns processing fee
- Stock count or audit fees
- Account or software fees
- Long-term storage surcharges
- Exit fees for removing stock
- Whether prices include 5% VAT
Comparing quotes
Put every quote into the same table, using the same assumed month: orders, items, weights, CBM, COD share and return rate. Compare the total per order, not the headline rates — a low storage rate can hide a high delivery or COD fee. The full list of questions is in how to choose a 3PL.