Dock & Delivery Fee: How It Works and Choosing the Right Pack Size
What is the Dock & Delivery fee?
The Dock & Delivery fee is a flat charge of $10 to $12 applied to each pack that leaves our warehouse for delivery to a Buyer. It covers part of what it actually costs to receive, handle, and deliver your product from the warehouse to the account.
The fee does not cover the full cost of delivery. LibDib absorbs the rest so that small and emerging brands can reach Buyers without running their own logistics.
How the fee is applied
The fee is charged per pack, not per bottle. A pack is the unit you set up for Buyers to order, whether that is 1 bottle, 6 bottles, or 12 bottles that fit in a case.
Because the fee is the same for every pack, the number of bottles in your pack decides how much of the fee each bottle carries:
- A 1-bottle pack carries the entire fee on a single bottle.
- A 12-bottle case spreads the same fee across 12 bottles.
The work to pull, check in, load, and deliver a pack is largely the same no matter how many bottles are inside it. That is why the fee follows the pack.
What it costs per bottle
The larger the pack, the smaller the fee per bottle. Here is how a $10 to $12 fee breaks down:
|
Pack size |
Fee per bottle at $10 |
Fee per bottle at $12 |
|---|---|---|
|
1 bottle |
$10.00 |
$12.00 |
|
2 bottles |
$5.00 |
$6.00 |
|
3 bottles |
$3.33 |
$4.00 |
|
6 bottles |
$1.67 |
$2.00 |
|
12 bottles |
$0.83 |
$1.00 |
For example, if your wholesale price is $15 a bottle, a 1-bottle pack gives up $10 to $12 of that $15 to delivery. The same bottle in a 6-pack gives up $1.67 to $2.00.
Choosing the right pack size
The best pack size sits between what a Buyer is willing to order and what still makes money for you after the Dock & Delivery fee. Too small, and the fee eats your margin. Too large, and Buyers may pass because the order is more than they need.
Ask yourself these questions:
- What do my Buyers usually order? A restaurant adding a new by-the-glass wine may want 6 or 12 bottles. A retailer testing a high-priced spirit may only want 2 or 3.
- What is my margin per bottle? Subtract the per-bottle fee from the table above. If what is left does not work for your business, the pack is too small.
- What does my product cost? Higher-priced products can carry the fee on smaller packs. Lower-priced products usually need larger packs to stay profitable.
- How fast does it sell? Buyers order more at once when they expect a product to move quickly.
A 6-pack or a 12-bottle case keeps the fee to about $2 or less per bottle. Smaller packs make sense for premium, limited, or slower-moving products where the price per bottle can absorb the fee.
Frequently asked questions
Is the fee the same if my case holds 12 bottles or 1 bottle? Yes. The fee applies once per pack, whatever is inside it.
Can I offer more than one pack size? Yes. Some Makers list both a smaller pack for trial orders and a full case for repeat Buyers.
Why doesn't LibDib charge the full delivery cost? The fee only offsets part of the actual cost. LibDib covers the rest to keep distribution accessible for Makers.
Can I change my pack size later? Yes. Reach out to our team and we will help you update your offering.
Need help choosing?
We are happy to look at your pricing and Buyer demand with you. Email us at makers@libdib.com or Gold/Silver speak with your Portfolio Manager.