Fulfillment guides
In-house packing vs fulfillment: which costs less?
By MY ARRAY · Content updated
There is no universal order threshold for outsourcing. The decision depends on total costs, owner time, items per order, storage volume, and packing requirements. Compare both options using the same workload and service scope.
Costs that are easy to overlook
| Cost | In-house packing | Fulfillment |
|---|---|---|
| Space | Rent or the value of the space used | Storage charge and measurement method |
| Labor | Wages and owner time | Picking and order-handling charges |
| Materials and equipment | Boxes, protection, printers, and equipment | Check included and additional items |
| Delivery and exceptions | Shipping, reshipments, and returns | Request shipping rates and special-service terms |
An example with 500 monthly orders
Assume one item per order and 1 m³ of billable storage: THB 700 storage + THB 1,500 picking + THB 5,000 order handling = a monthly subtotal of THB 7,200 at MY ARRAY’s published rates.
For illustration, suppose in-house costs are THB 6,000 for labor, THB 2,000 for space, and THB 500 in monthly equipment allocation: THB 8,500 total. These are teaching assumptions, not market benchmarks or a customer result.
The preliminary THB 1,300 difference does not establish a saving. Add packaging, shipping, receiving, taxes, special work, and any other applicable costs on both sides before deciding.
Items per order and storage change the result
At 500 orders with two items per order, picking becomes THB 3,000 and the subtotal becomes THB 8,700 with the same storage. Increasing billable storage to 2 m³ makes that subtotal THB 9,400. Product characteristics matter as much as order count.
When can in-house packing still fit?
- You have available time and space without compromising sales work.
- Individual customization or special preparation cannot yet be handed over to a warehouse.
- Orders are inconsistent and your internal costs remain lower after comparing all charges.
Prepare before requesting a quote
- Collect orders, item quantities, and peak volumes for a representative sales period.
- Separate warehouse time from selling and customer-service time.
- Provide SKUs, dimensions, packing instructions, and special requirements.
- Request itemized charges, billing units, and exclusions.