Glossary / Pick and pack

Glossary

Pick and pack

The core fulfillment charge: retrieving the items in an order and packing them to ship.

What it means

Usually priced as a base per order plus a rate per additional unit — $2.50 for the first item, $0.35 for each one after. Some contracts price per line rather than per unit, which is a different number for the same shipment.

What goes wrong

Per-unit billed as per-line, or the base charged on every unit instead of once per order. On a high-volume month the gap compounds quietly: a $0.35 error on 40,000 units is $14,000 that never looks like anything.

The arithmetic

1,000 orders · 3,200 units
Contract · $2.50 per order, $0.35 per additional unit.

As written
  1,000 × $2.50           = $2,500.00
  2,200 × $0.35           =   $770.00
                              ----------
                              $3,270.00

Additional rate applied to every unit
  1,000 × $2.50           = $2,500.00
  3,200 × $0.35           = $1,120.00
                              ----------
                              $3,620.00

Difference                      $350.00

One month. The rate is right, the count is wrong,
and nothing on the invoice looks unusual.
Difference by $350.00, drawn to scaleAdditional rate applied to every unit: $3,620.00. As the contract reads · base once per order: $3,270.00. Difference: $350.00.Additional rate applied to every unit$3,620.00As the contract reads · base once per order$3,270.00Difference$350.00one month, 1,000 orders

How to check it

Take the order count and the unit count separately. Base × orders, plus additional rate × (units − orders). If the invoice used units for both, it is wrong.

Read next

All seven termsTen ways an invoice goes wrong