Minimum Order Volume for Fulfillment: Is There Really Such a Thing?

Why do many fulfillment providers require a minimum order volume?

For many fulfillment centers, partnering with a customer is only worthwhile once a certain monthly order volume is reached. The reason for this lies in the cost structure: warehouse space, staff, and processes are firmly budgeted, so a minimum order volume provides the provider with planning certainty. For emerging brands, startups, or companies with highly seasonal business—such as during the holiday season or product launches—such a minimum volume, however, is often a real obstacle in finding the right logistics partner.

What challenges does this pose for growing brands?

A fixed minimum order volume often forces young companies to either resort to unsuitable providers with unfavorable terms or continue to handle warehousing and shipping themselves, even though this overburdens their own team. Especially during the growth phase, when order volume is still fluctuating or varies significantly by season, a fixed minimum order quantity can result in unnecessarily high fixed costs, even if the actual volume falls below that threshold.

How Logiful Solves This Problem

Logiful has neither a minimum order volume nor a base fee. You’re billed solely for the actual volume processed, which makes fulfillment predictable and low-risk even for startups, smaller brands, and companies with highly fluctuating order volumes. This provides the flexibility needed to grow alongside your business without having to make any fixed commitments in advance.

What to Look for When Choosing a Provider

Before you choose a fulfillment partner, it’s worth taking a close look at the terms of the contract: Is there a minimum order volume, a minimum contract term, or a base fee that applies regardless of actual sales? If you want to remain flexible, you should specifically look for providers that don’t impose such barriers to entry.