Guide to Third-Party Logistics (3PL) Pricing: Storage, Fulfillment, and Shipping Costs
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Is your ecommerce business ready to scale by outsourcing fulfillment? Understanding 3PL pricing is essential for streamlining operations and optimizing costs. In this comprehensive guide, we break down the components of third-party logistics pricing, helping you make informed decisions with confidence. From "pick, pack and ship" services to warehousing and software fees, we've got you covered.
What Is 3PL and Why It Matters
A third-party logistics (3PL) provider manages supply chain logistics on behalf of ecommerce businesses. This includes services like inventory storage, order fulfillment, shipping, and returns. By partnering with a 3PL, you can:
- Reduce operational overhead
- Improve delivery speeds
- Scale effortlessly with demand
- Access advanced logistics technology
- Enhance customer experience
But of course, all of this comes at a cost. Let’s explore what those costs look like.
4 Major Categories of 3PL Pricing
1. Receiving Your Inventory
When products arrive at the 3PL warehouse, the provider handles unloading, sorting, counting, and logging the inventory into their system.
Typical Costs:
- $20–$50 per hour for labor
- $5–$15 per pallet
- $0.25 per unit
2. Storage and Warehousing
Storage fees are typically charged monthly and vary by how your inventory is stored.
Pricing Models:
- Per pallet: $5–$15/month
- Per bin or shelf: $1–$2.50/month
- Per cubic foot: $0.30–$0.55/month
Tip: The more compact and efficiently packaged your products are, the lower your storage costs.
3. Pick, Pack, and Ship
This is the core of your fulfillment operation — the "pick, pack and ship" process.
Pick and Pack Costs:
- Flat fee per order: $2–$3.75
- Per item: $0.20–$1.50 depending on order complexity
- Custom packaging (e.g., eco-friendly or branded boxes): $0.25–$2.00
- Label printing or inserts: $0.10+ per order
Shipping Costs:
Use your carrier account or leverage the 3PL’s discounted rates (typically 10%–30% off retail).
4. Outbound Shipping & Returns (Reverse Logistics)
Shipping is calculated based on weight, size, destination, and shipping method. Returns are processed and restocked for an additional fee.
Return Processing:
- $1–$3.50 per return depending on complexity
- Return shipping at cost
Other Common 3PL Fees
| Service | Typical Fee |
|---|---|
| Onboarding/Setup | $100–$1000 (one-time) |
| Account Management | $75–$250/month or $40–$60/hour |
| Kitting/Assembly | Project-based or $0.50–$2 per kit |
| Work Orders | $30–$60/hour for special tasks |
Example: Fulfillment Cost Breakdown
| Cost Category | Amount |
|---|---|
How to Calculate Your Fulfillment Cost Per OrderUse this simple formula to estimate your average cost:
Example: Is 3PL Worth the Cost?Absolutely — when chosen strategically. The benefits include:
Pro Tip: Compare quotes from at least 3 providers, ask about SLAs, tech integration, and scalability. Choose a partner that grows with you. Why Atomix Logistics?At Atomix Logistics, we tailor every solution to fit your exact needs — no unnecessary fees, no bloated services. With fulfillment centers in Milwaukee and Salt Lake City, we cover 96% of U.S. orders in 2 days or less, reducing shipping costs and enhancing customer experience. Our Advantages:
Ready to Streamline Your Fulfillment?Discover how our fulfillment services can reduce costs, improve delivery times, and help you scale your ecommerce operations with confidence. Get your free fulfillment quote today! FAQ: Understanding 3PL Costs and Fulfillment ServicesWhat factors influence the cost of third-party logistics (3PL) services?The cost of 3PL services depends on several key factors, including order volume, storage requirements, product size and weight, special handling needs, and the level of service provided. Additional elements like custom packaging, kitting, and returns management can also affect pricing. Understanding your business's logistics needs is crucial for estimating accurate 3PL costs. How much does pick and pack fulfillment typically cost?Pick and pack fulfillment fees generally range from $2 to $3.75 per order, with additional costs per item, typically around $0.20 to $1.50. These fees cover labor, packaging materials, and the handling required to process customer orders efficiently. Complex or multi-item orders may incur higher fees. What are the average storage fees charged by 3PL companies?3PL storage fees are usually calculated based on space utilization and can vary widely. Expect to pay between $5 and $15 per pallet per month, $1 to $2.50 per bin, or $0.30 to $0.55 per cubic foot. The exact pricing will depend on how your inventory is stored and the provider’s warehouse location. Are there any one-time fees when starting with a 3PL provider?Yes, most 3PLs charge one-time onboarding or setup fees when you first partner with them. These can range from $100 to over $1,000 depending on the complexity of your ecommerce business. These fees typically cover software integration, storage setup, and staff training. How can I reduce my overall 3PL fulfillment costs?To lower your 3PL costs, optimize your inventory for efficient storage, consolidate orders, negotiate shipping rates, and choose a fulfillment center close to your customers. Working with a scalable 3PL partner that offers volume discounts and tailored pricing models can also lead to significant cost savings. Oops! Something went wrong while submitting the form. Talk with a team member and get $1,000 of order fulfillment credit*  Alex Jack  *$1,000 of credit is applied to customers account after Atomix fulfills their 500th order  Hafez is the Marketing Manager at Atomix Logistics, where he creates blogs, guides, and other resources to help eCommerce brands streamline their logistics and scale their operations. Related BlogsGET YOUR CUSTOM QUOTE Talk with an Expert |
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