INSIDE THE FASHION INDUSTRY – The Real Cost of Fulfilment for Emerging Designers

A few months ago, I published a blog titled “INSIDE THE FASHION INDUSTRY – Working With A Fulfillment Center,” where I started a conversation about what it means for a brand to outsource warehousing and shipping operations. However, with Vogue recently publishing “Designing for Disruption: How Fashion Brands Are Future-Proofing Fulfilment,” this topic deserves a deeper look! The conversation is evolving, and fulfilment is no longer just a back-end operational detail. It is increasingly becoming a core part of brand identity, customer experience, and long-term financial resiliency - especially for emerging designers.

Vogue’s article highlights how brands are redesigning fulfilment to handle supply chain instability, fluctuating consumer demand, and rising expectations for fast and accurate delivery. For new designers, these challenges are amplified. When your budget is tight and your margins are narrow, each operational decision has a measurable impact on your business plan, production costing, and ultimately, your ability to scale sustainably.

Before we get into strategy, we need to acknowledge the true cost of fulfilment!

Fulfilment centers are often marketed as “cost-saving” and “time-saving” solutions - and in many ways, they are. But only when properly planned. Costs go far beyond monthly storage and shipping fees, and emerging designers must understand the full picture before choosing a partner.

The typical cost structure includes:

• Receiving Fees – charged per unit, carton, pallet, or hour.

• Storage Fees – based on pallet, shelf, or bin usage.

• Pick & Pack Fees – charged per item picked and packaged.

• Packaging Costs – unless you supply your own branded materials.

• Shipping Costs – which vary based on carrier contracts, volume, weight, and destination.

• Account & System Fees – including software integrations and reporting tools.

• Returns Handling Fees – which can significantly increase during product drops or holiday seasons.

To illustrate, Glossier - a brand known for strong community loyalty and rapid DTC growth - learned the importance of fulfilment infrastructure during periods of unexpected demand spikes. They eventually partnered with Quiet Logistics, a fulfillment provider known for automation, to build a more resilient operational system (source: Glossy.co / Business of Fashion). When American Eagle acquired Quiet Logistics in 2021, it was part of a strategic move to create shared supply chain efficiency across multiple brands - a clear sign that fulfilment is now viewed as a competitive advantage.

Meanwhile, Warby Parker invested early in a vertically integrated supply chain, controlling everything from optical labs to distribution (source: Harvard Business Review). This kept margins stable and ensured consistent customer experience throughout their scale-up. On the other hand, brands like Allbirds used third-party logistics partners such as Radial to support international expansion while maintaining predictable delivery performance (source: Supply Chain Dive).

The takeaway is simple:

There is no one-size-fits-all fulfilment solution. The right model depends on your business stage, your sales projections, and the type of customer promise your brand is making.

For emerging designers, however, the risk lies in outsourcing fulfilment without understanding how those costs integrate into product pricing and cash flow planning. It is not just about whether you can afford the fees today - it is about whether your projected sales volume and production cycles can support those ongoing operational expenses in the future.

Your business plan must account for:

• Inventory seasonality.

• Storage fluctuations as production increases.

• Return rates and how they affect margins.

• The delivery expectations you set for customers.

• Whether packaging reinforces branding or is replaced to cut costs.

Vogue’s article makes it clear that brands of every size are now designing fulfilment strategies to withstand disruptions - from shipping delays to influencer-driven demand spikes to international trade volatility. For emerging designers, this means building flexibility into your model from the beginning. For example:

• Start with small-batch production and consider a hybrid fulfilment model (in-house for special orders, outsourced for volume).

• Negotiate seasonal scaling in fulfilment contracts.

• Use data-driven inventory planning to avoid costly overstock.

When I wrote my initial blog on fulfilment centers, the goal was to introduce the concept and help new designers understand what they are signing up for. Now, with the industry openly discussing fulfilment as a strategic growth pillar, the conversation needed to expand! Fulfilment is no longer simply about shipping, it is about protecting your margins, supporting your brand identity, and building a resilient foundation for long-term growth.

For emerging designers, future-proofing fulfilment starts with planning. Understand your numbers. Project realistic sales. Know your production lead times. Design a delivery experience that aligns with your brand. And above all, build fulfilment into your business plan from day one!

If you are developing your brand and need guidance evaluating fulfilment options, running costing projections, or structuring your supply chain to scale intelligently, I can help!

Ready to build a smarter fulfilment strategy for your brand? Schedule a free 30-minutes strategy call here https://go.oncehub.com/BarbaraSessim