Peak Season Fulfillment
Peak Season Is Crushing Your Operations. Here's What Actually Breaks — And How to Fix It
Every Q4 the same three things fail: storage runs out, pick-and-pack falls behind the carrier cutoff, and a 3PL that quoted flat rates in June adds a "peak surcharge" in November. We run a 32,000 sqft Houston warehouse for 180+ sellers and hold one rate card all year — here's exactly what breaks during peak season and the published numbers we use to keep it from happening to our clients.
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What actually breaks when order volume spikes
Five things break during peak season, and they break in roughly this order: storage capacity, cutoff discipline, receiving speed, temp labor quality, and inventory accuracy. It's rarely the product or the ad spend — it's the fulfillment infrastructure underneath it.
- Storage runs out first. Sellers ship in safety stock for Q4 and find their 3PL is already tight on space, or gets billed a flat monthly minimum that punishes short bursts of extra pallets.
- Cutoffs slip. A warehouse that ships same-day at normal volume starts pushing orders to the next day once volume triples, and often nobody tells the seller until a customer complains.
- Receiving backs up. A pallet count that used to move from truck to shelf in a day sits on a dock for a week during peak, and inventory isn't sellable until it's checked in.
- Untrained temp labor makes mistakes. Warehouses that staff up with short-term labor for Q4 see mis-picks and mislabels climb right when order volume — and customer patience — is highest.
- Manual tracking falls over. Spreadsheet inventory counts that were close enough at 50 orders a day cause oversells and stockouts at 300.
The strain shows up again in January: a wave of holiday returns hits a 3PL that's still catching up from December, and processing slows further just when customers expect a fast refund.
Fix it before it happens: the pre-peak checklist
Fixing a peak-season crush means solving it in October, not December. Here's the order we walk sellers through.
- Ship safety stock in early. Storage is billed monthly at $25 per pallet, so inventory that lands mid-month only costs the days it's actually on the shelf — not a full month's rent for two extra weeks.
- Get the cutoff time in writing. Ask exactly what time inbound orders need to hit for same-day pick, pack, and ship — ours is 2pm CT, Monday through Saturday, at any volume.
- Ask how receiving is billed at volume. Find out the per-pallet receiving cost and whether it drops for large inbound shipments — ours is $20 per pallet ($5 per carton).
- Confirm the per-order rate holds through December. Ask directly whether the fulfillment rate changes during peak season, and get the answer in writing before you commit inventory.
- Check for setup fees and contracts. Many 3PLs charge onboarding or software fees to get set up before peak, then lock you into a term contract. Ask what it costs to start and what it costs to leave.
- Plan for the returns wave. January returns are predictable — confirm the per-return cost and whether inspection is included before the rush, not during it.
Peak-season pricing — the same rates we quote every month
These are the published rates for FBA prep, FBM order fulfillment, storage, receiving, and returns. They don't change in November or December.
| Service | Rate | What's included |
|---|---|---|
| Amazon FBA prep | $0.75/unit | Full-service FBA handling for units under 5 lb is $0.75/unit, including FNSKU labeling and prep labor. Materials are separate: polybag $0.20/unit and bubble wrap $0.20/unit when needed. Receiving, storage and outbound freight are separate. Lean label-ready units start at $0.50; heavier units use the published weight bands. |
| FBM / DTC fulfillment | $2.00 (≤5 lb) · $2.75 (5–8 lb) · $4.00 (8–15 lb) | Pick, pack, ship — packaging materials from $0.25, per order |
| Pallet storage | $25/pallet, billed monthly | Climate-controlled; you pay for the days used, not a flat month |
| Receiving | $20/pallet ($5/carton) | Applies to every inbound shipment, peak or not |
| Returns processing | $1.50/return | Inspection included |
What a peak season month actually costs
Here's what happens to the invoice when order volume triples, using only the rates above.
Baseline month — 200 FBM orders, all under 5 lb, plus 8 pallets of storage: 200 × $2.00 = $400 in fulfillment, and 8 pallets × $25 a month = $200 in storage. Total: about $600.
Peak month — order volume triples to 600 orders and inventory grows to 15 pallets to cover the surge, plus a 1,000-unit FBA prep run for a separate Amazon push: 600 × $2.00 = $1,200 in fulfillment; 15 pallets × $25 a month = $375 in storage; 1,000 × $0.75 = $750 in FBA prep. Total: about $2,325.
Notice what didn't move: the $2.00 per-order rate. Volume tripled and the unit economics stayed flat — no surge multiplier, no holiday tier. If that inbound inventory shipped as a single 60-pallet load, receiving on it adds 60 × $20 = $1,200, billed once on arrival.
These are illustrative numbers built only from published rates. Your actual invoice depends on your weight mix, items per order, and how much stock you carry — send your SKU list for a line-item quote.
The questions every seller asks before committing a 3PL for Q4
These are the questions we get on nearly every peak-season quote request, answered directly.
- Minimums? None. No minimum order volume, no minimum spend, no minimum SKU count — start with a single unit.
- Setup or onboarding fees? None. There's no setup fee.
- Contract or cancellation penalty? No contract. Month-to-month.
- Receiving cost and timing? $20 per pallet ($5 per carton). Time-to-available depends on shipment size and how it arrives — tell us the specifics and you'll have a number in 24 hours.
- Lot and expiration tracking? Available through the KAK WMS dashboard, alongside real-time inventory visibility.
- Which platforms integrate? Shopify, TikTok Shop, Walmart, eBay, BigCommerce, WooCommerce, Etsy, Magento, and Amazon FBM.
- Turnaround? Inventory or orders in before the 2pm CT cutoff, Monday–Saturday, ship or get prepped the same day.
- What if inventory is lost or damaged? Every shipment is covered up to $500,000, and we're fully liable for our own handling.
- Kitting, bundling, or branded inserts for holiday gift sets? Available — custom-quoted, since packaging specs vary. Tell us what you need and you'll have a number in 24 hours.
Sample monthly fulfillment cost at a few order volumes, using the $2.00 FBM rate for orders under 5 lb: 50 orders = $100.00, 100 orders = $200.00, 300 orders = $600.00. Storage, receiving, and any FBA prep are separate line items on top of that, using the rates in the table above.
Why sellers move their peak-season fulfillment to Houston
We've been running DTC and Amazon fulfillment out of Houston since 2024. That's not a rate we can quote — it's how long we've had to get the pre-peak checklist above right for other sellers, in a 32,000 sqft climate-controlled facility monitored 24/7.
If your current 3PL is already showing peak-season strain — missed cutoffs, storage overage bills, a surprise surcharge — walk through our 3PL warehouse service or storage pages for the full rundown, or send your SKU list on the quote page and we'll reply with line-item pricing within 24 hours. Questions before that go to our team directly, or call +1 832 759 1368.
Peak season fulfillment — frequently asked questions
Does KAK Sourcing charge peak-season or holiday surcharges?
When should I ship inventory in before peak season?
What does receiving cost for a large pre-peak shipment?
Will my per-order rate go up if my volume triples during peak?
Do I need a contract to lock in peak-season capacity?
What happens to returns after the holiday rush?
Is there a minimum order volume to start before peak season?
What happens if inventory or orders miss the 2pm CT cutoff?
Can KAK take a sudden inventory surge without advance notice?
Do you offer kitting or bundling for holiday gift sets?
Ready when you are
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Lean handling under 5 lb: FBA $0.50/unit or FBM $1.75/order for pre-packed goods. Full service: $0.75/FBA unit or $2.00/FBM order. Materials and postage are separate; storage is $25/pallet/month.