Compare Fulfilment Services in the UK: A Quick Guide

Choosing where and how your orders get picked, packed and shipped has a direct impact on customer loyalty, margins and the daily rhythm of your business. The UK has a rich mix of fulfilment services, from boutique operations serving creator brands to large networks handling thousands of orders per hour. Comparing them well is less about slick brochures and more about matching your product, channel strategy and growth plans to the right operating model.

The following guide breaks down the decision into tangible parts. It covers cost structures, service models, technology, compliance, returns and cross‑border shipping, then offers a practical scoring matrix and real‑world scenarios to help you make a confident choice.

Key factors to weigh up

• Speed and cut‑offs: What is the latest order cut‑off for same day dispatch, and which carriers are supported for next day or timed delivery?
• Accuracy and quality: Pick accuracy guarantees, packaging standards, photo evidence, QC checks and damage rates.
• Inventory control: Real‑time stock visibility, lot and batch tracking, serial numbers, expiry dates and cycle counting.
• Integrations: Shopify, WooCommerce, Magento, BigCommerce, Amazon, eBay, Etsy, order routing, EDI for retail, and any custom API limits.
• Returns handling: Portal options, prepaid labels, grading rules, refurbishment, quarantine and re‑stock times.
• Scalability: Peak plans, automation level, multi‑site options, and whether capacity grows with you during flash sales or seasonal spikes.
• International reach: DDP vs DAP options, IOSS for EU orders, duties and taxes calculation, and access to EU or US hubs.
• Pricing clarity: Fees that actually reflect your order profile and packaging needs, not just headline rates.
• Sector experience: Cosmetics, food supplements, alcohol, electronics, homeware, fashion or bulky items all need different controls.
• Sustainability: Recyclable packaging, right‑sizing tech, carbon reporting and carrier choices that cut emissions.
• Support: Named account manager, escalation paths, proactive alerts and audit trails.

What the price really includes
Rates pages can be confusing, so look past single line quotes. Most UK providers break fees into the following:

• Inbound receiving: Per pallet or per case, with barcoding and QC.
• Storage: By pallet, shelf, bin or cubic metre, often charged daily.
• Pick and pack: A base pick fee for the first item, then an extra fee per additional item in the same order.
• Packaging: Standard mailers or cartons included or charged per unit; custom inserts and branded packaging often extra.
• Postage and carrier: Tariffs for Royal Mail, DPD, Evri, DHL, UPS and others, with fuel surcharges and out‑of‑area fees.
• Projects and value‑add: Kitting, relabelling, FBA prep, gift wrapping, bundling, barcoding.
• Returns: Processing, inspection, repackaging, disposal or refurbishment.
• Tech and support: System access, integrations, onboarding, custom development, account management.

Watch for peak surcharges, Saturday fees, oversize charges, long‑term storage penalties and minimum monthly commitments. Ask for a worked example based on your data to avoid surprises.

A worked example you can adapt
Assumptions

• 1,000 orders per month
• 1.6 items per order on average
• 6 pallets of storage
• 65 percent Royal Mail 48 tracked, 25 percent DPD next day, 10 percent Royal Mail International tracked
• 10 percent returns rate
• Standard recyclable mailers and cartons

Cost element	Provider A SMB specialist	Provider B automation‑heavy	Provider C multi‑site network
Receiving	£12 per pallet	£15 per pallet with QC photos	£10 per pallet
Storage	£12 per pallet per week	£11 per pallet per week	£13 per pallet per week
Pick fee first item	£1.05	£0.90	£1.20
Additional item	£0.30	£0.25	£0.35
Packaging	Included for standard SKUs	£0.10 per order	Included, custom extra
Royal Mail 48 tracked	£2.60	£2.40	£2.70
DPD next day	£4.00	£3.75	£4.10
RM International tracked (avg EU)	£7.80	£7.20	£7.90
Returns processing	£1.25 per unit	£1.50 per unit with grading	£1.10 per unit
Account management	£0	£200 per month	£100 per month
Estimated monthly total	~£5,310	~£5,090	~£5,560

Notes

• The cheapest postage line does not always win once extra items, packaging and support are factored in.
• Provider B looks sharp on unit price but adds a monthly fee; helpful if you value robust reporting and QC evidence.
• Your split between carriers will move the dial far more than a few pence on pick fees.

Service models to compare

1. Third‑party fulfilment for D2C
   Most UK ecommerce brands use a specialist 3PL with one or more warehouses. Ideal for multi‑channel sales, branded packaging and flexible projects like kitting or influencer packs. Strong choice if you want control over packaging and returns experience.

2. Marketplace fulfilment
   Amazon FBA, eBay Global Shipping Programme and similar services give prime‑eligible speed and high conversion on those platforms. You trade control for reach and speed, and fees can climb if storage drifts or products are oversized. Many brands pair FBA for Amazon with a 3PL for the rest.

3. In‑house with carrier collections
   Suited to early‑stage brands and those with very high SKU complexity or made‑to‑order items. Control is high, but you carry the fixed costs, HR, holiday cover and continuous improvement.

4. Hybrid
   FBA for fast movers on Amazon, a 3PL for D2C, and a pallet or two for wholesale B2B delivered on EDI terms. Hybrids let you squeeze the best out of each channel, though they need good planning to avoid split stock issues.

Carrier choices and realistic delivery promises
Carriers excel in different areas. Match your parcel size, weight and promise to the right service.

Carrier service	Typical delivery	Tracking	Strengths
Royal Mail 24	1 day	Delivery confirmation or full tracking	Letterbox, light parcels, broad coverage
Royal Mail 48	2 days	Delivery confirmation or full tracking	Cost‑effective for low weight
DPD Next Day	1 day	Full tracking with 1‑hour window	High first‑time delivery success
Evri Standard	2 to 3 days	Full tracking	Value on low to mid weight
Parcelforce 24/48	1 to 2 days	Full tracking	Larger parcels, UK wide
UPS/DHL domestic	1 day	Full tracking	Consistent for business addresses
Royal Mail International Tracked	3 to 7 days EU	Full tracking	Documented CN22/23 flows
DHL/UPS Express	1 to 3 days global	Full tracking	Time‑definite, customs expertise

Ask about

• Latest cut‑off times by carrier
• Weekend processing and Sunday delivery options
• Contingency if a carrier hub has issues
• Peak capacity guarantees during Q4

Footprint and warehouse geography
A single UK site is simpler for most brands. Fewer split shipments and a single stock pool reduce complexity. Multi‑site models add speed to the edges of the country, spread risk and support same day cut‑offs for more zones, but they need smarter order routing and safety stock.

Points to consider

• Proximity to your inbound flows from Felixstowe, Southampton or London Gateway
• Access to air at East Midlands and Heathrow for late cut‑offs
• Coverage for Scotland, Northern Ireland and islands
• EU options if most exports go across the Channel

Returns that keep customers loyal
Returns are not just a cost; they influence repurchase. Compare providers on:

• Portal options with pre‑authorisation rules
• Prepaid labels and carrier choice by item value
• Grading standards, photo evidence and disposition codes
• Sanitisation or refurbishment for apparel and electronics
• Time from receipt to refund trigger
• Data on reasons to inform product improvement

Technology fit
A good WMS and clean integrations save time and errors.

Look for

• Real‑time stock levels and backorder rules
• Order edits and cancellation windows before pick
• Bundles and virtual kits that keep stock accurate
• Lot, batch and expiry control for food and cosmetics
• ASN support and EDI for retail partners
• BI dashboards with OTIF, cost per order, returns, shrinkage and carrier performance
• Sandbox for testing and webhooks for custom logic

Compliance and special handling in the UK

• Cosmetics and personal care: CPNP legacy and UK SCPN notification, labelling, batch traceability and shelf life.
• Food supplements: Allergen labelling, batch tracking, temperature control if needed, and FIFO or FEFO rules.
• Alcohol: AWRS and duty paid status, age‑restricted delivery options.
• Electronics and batteries: WEEE, lithium battery packing instructions, dangerous goods training and documentation.
• Medical devices: MHRA registration where applicable, lot traceability and recall readiness.
• Bonded storage: Possible duty deferment for imports, useful for higher value goods pending sale.
• Data protection: GDPR and PCI if handling customer data and payments in any connected systems.

Cross‑border after Brexit
EU shipments need clarity on duties and taxes. You can ship

• DAP: The buyer pays duties and taxes on delivery. Simpler seller process but poor customer experience if fees surprise the buyer.
• DDP: Duties and taxes paid by the seller at checkout. Better for conversion. Requires IOSS for EU VAT on low‑value goods and a broker who can clear on your behalf.

Key steps

• Clean HS codes and precise product descriptions
• Country of origin data to claim preference under trade deals where eligible
• Commercial invoices and electronic data ready at label creation
• EU returns path that avoids double duty on re‑imports
• Consider an EU hub if volumes justify it, especially for fast movers

Sustainability without fluff
Sustainable fulfilment can cut cost and waste at the same time.

Practical moves

• Right‑size packaging to reduce DIM weight charges and void fill
• Choose recycled or FSC‑certified materials and paper tape
• Set cartonisation rules in the WMS to prevent over‑boxing
• Carrier mix that supports consolidated final mile or electric fleets in some postcodes
• Carbon reporting at order level to inform honest communication

Support and culture
Fulfilment is a relationship. Pay attention to

• Named contacts and holiday cover
• Response times, incident logging and root cause analysis
• Change control for promotions and new product launches
• Business continuity plans and disaster recovery for IT and operations
• Quarterly reviews with action plans and clear owners

A simple comparison matrix you can reuse
Assign weights that reflect what matters to you, score each provider, then total. Keep it practical and data led.

Criterion	Weight	Provider 1	Provider 2	Provider 3
Pick accuracy and damage rates	15 percent	8	9	7
Cut‑off times and SLA	10 percent	7	9	8
Carrier breadth and tariffs	10 percent	8	8	7
Tech integrations and WMS	10 percent	7	9	8
Returns capability	8 percent	8	7	9
Pricing transparency	10 percent	9	7	8
Scalability and peak plan	8 percent	7	9	8
Sector expertise	7 percent	8	7	8
Sustainability options	5 percent	7	8	6
Account management	7 percent	8	8	6
International and DDP options	10 percent	7	9	8
Total (weighted)	100 percent	7.8	8.6	7.5

Tip: back your scoring with evidence. Ask for SLA proofs, sample dashboards, carrier invoices, and references for brands like yours.

Scenarios and likely fits

1. Creator brand with apparel, 300 orders per month
   Priorities: branded packaging, returns portal, photo evidence for QC, Instagram‑friendly unboxing.
   Fit: SMB‑focused 3PL with flexible packaging rules, late Royal Mail cut‑off and DPD upgrade at checkout. Avoid long minimums while building volume.

2. Supplements brand, 2,500 orders per month
   Priorities: batch and expiry control, FEFO, lot traceability, rapid recall simulation, international DDP.
   Fit: 3PL with strong compliance track record, EDI for wholesale, and IOSS in place. Pay for QC and an annual mock recall.

3. Homeware with 1,000 SKUs, B2C and some retail
   Priorities: kitting, fragile packing standards, pallet and parcel mix, EDI ASN for big retail partners.
   Fit: Multi‑capability 3PL with B2B lanes, carton drop tests, and clear oversize tariffs. Consider a second node later if parcels are travelling far to Scotland or the South West.

How to run a clean RFP

• Prepare your data pack: 12 months of order volumes, lines per order, SKU count, average weights and sizes, returns rate, seasonal peaks, inbound profile, carrier mix, and any special handling rules.
• Define non‑negotiables: cut‑offs, accuracy targets, service levels for returns, packaging standards and reporting cadence.
• Shortlist 4 to 6 providers: mix of size and specialism, ideally with references in your category.
• Share a standard questionnaire: operational detail, IT stack, security, pricing template, KPIs, business continuity, and sample contracts.
• Visit sites: observe pick accuracy checks, packing benches, training, safety and culture. Meet the team who will handle your account.
• Run a pilot: 2 to 4 weeks with a subset of SKUs and real orders. Measure OTIF, accuracy, damage rates, returns processing time and support response.
• Negotiate smartly: align on surcharges, peak rules, carrier invoicing transparency, change control, and exit terms.
• Plan go‑live: cutover date, stock transfer plan, blackout window, rollback plan and communication to customers.

What to track after go‑live

• OTIF: On time and in full, by channel and carrier
• Pick accuracy: Errors per 1,000 lines, with root cause breakdown
• Cost per order: All‑in, including packaging and returns
• Carrier performance: First‑time delivery success, transit time, claims
• Returns lead time: From receipt to refund or replacement
• Shrinkage: Loss and damage rates, with investigation notes
• Inventory health: Aged stock, stockouts, and forecast accuracy
• Customer feedback: Order rating, review sentiment and CS contact rate

Red flags during comparison

• Vague SLAs or reluctance to share accuracy data
• Pricing proposals that exclude packaging or fuel surcharges without clarity
• One carrier for everything, despite your parcel profile suggesting a mix
• No plan for Q4 or influencer drops
• Limited IT documentation or no sandbox for testing integrations
• Slow or generic answers during the RFP

Ways to reduce cost without cutting quality

• Improve product data: exact weights and sizes, so cartonisation picks the right box and avoids DIM charges
• Nudge customers: delivery promises that match reality, with paid upgrades for speed
• Consolidate packaging SKUs where possible, then negotiate material costs
• Use rules to default to tracked services for higher value orders only
• Split inventory only when volume justifies multi‑site stock

Questions to ask references

• How did the provider handle a peak with twice the usual volume?
• How quickly do they fix errors and what credit policy applies?
• What reporting and data access do you actually use week to week?
• Have they supported a platform migration or new marketplace launch smoothly?
• Any surprises in invoicing, and how were they resolved?

What good looks like
You feel in control. You have live dashboards, clear costs and a shared plan for peaks and new launches. The warehouse team knows your product quirks and cares about your brand. Carriers are chosen for fit, not habit, and your returns policy feels fair to customers without draining margin.

That is what a strong comparison delivers. When you weigh up the right criteria and test providers with real data, the choice often becomes clear. And once the right partner is in place, your customers feel the difference with every delivery.