Many brands use outsourcing to a 3PL to scale operations, improve shipping timeframes and reduce overhead. However, when it comes to budgeting for these services and planning ahead, first-time customers may have a hard time finding information about pricing. Costs vary widely between providers and depend on shipment volume, the services offered and the complexity of integration.
If you’re currently considering fulfillment center pricing, this guide will help you understand more about the common fees associated with fulfillment services and shine a light on how you can better estimate your monthly costs. We’ve included important comparisons, tips and tools to help you make informed decisions.
What factors impact fulfillment costs?
Fulfillment center pricing can be hard to pin down. Many 3PLs don’t provide exact pricing online. Access to each company's pricing structure requires consulting with them, and pricing is usually influenced by several factors. We’ve broken down the most common variables below.
- Volume and size: Larger orders typically lower your per-unit rate pricing. However, larger items may require specialized shipping that can increase costs.
- Storage requirements: How much space do you need for your inventory, and how long will it sit in storage month-to-month? This will influence your costs.
- Shipping and zones: Carriers calculate shipping rates based on delivery distance, package weight and dimensions.
- Technology: During the onboarding process, if your brand requires custom integrations or tech support, this may involve setup fees.
- Returns and handling: Special returns processing will incur additional costs.
Common fulfillment center costs
Fulfillment center pricing is all about the most common fees. Every provider will structure their pricing differently, however, most will include fairly standard cost categories such as onboarding, tech integration, storage, pick and pack, returns processing and account management. These costs add up quickly, so it’s important to know upfront what to expect when you choose to work with a 3PL company.
Fulfillment fee breakdown by type |
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| Fee type | Typical cost range | |||
| 1. | Onboarding/setup | $0-3,000 (one-time) | ||
| 2. | Tech & integrations | $600-$3,500 (one-time) | ||
| 3. | Storage | $10-$30 per pallet/per month | ||
| 4. | Pick & pack | $1-$5 per order (D2C) | ||
| 5. | Returns processing | $2-$5 per return | ||
| 6. | Receiving | $10-$50 per pallet | ||
| 7. | Account management | $50-$300 per month | ||
| 8. | Shipping | Variable (based on weight, destination, etc.) | ||
Individual line-item fees are just as important to understand as how costs can scale with order volume. Below is a general estimate of what fulfillment services can cost each month depending on volume tiers. The below ranges reflect typical service bundles and can help you estimate what to expect depending on the size and complexity of your fulfillment operations.
Monthly cost estimates by volume tier |
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| Order volume | Estimated monthly total | Includes |
|
500 orders/month |
$4,000–$6,000 |
Basic storage, pick & pack, tech and returns |
|
5,000 orders/month |
$25,000–$30,000 |
Mid-tier storage, higher labor + integrations |
|
20,000 orders/month |
$85,000–$95,000 |
Large-scale operations with expanded logistics |
*These estimates are based on publicly available industry data and internal benchmarks. Your actual cost will depend on your business model, SKUs, seasonal fluctuations and fulfillment strategy.
Tips to optimize fulfillment costs
Now that you’ve reviewed fulfillment center pricing, there are a few ways you can ensure you’re getting the most out of your investment. Consider the following ways to optimize costs:
1. Choose the right fulfillment partner
Choosing the right fulfillment partner will weigh heavily on your budget and their pricing. However, you also need to consider service quality, tech integrations and their shipping capabilities. A slightly higher pick-and-pack rate could be worth it if it improves delivery speed, accuracy and customer satisfaction.
2. Optimize inventory turnover
You’ll want to make great efforts to avoid long-term storage fees. You can achieve this by improving inventory forecasting and rotating out slow-moving SKUs. Many 3PLs will impose penalties on products and goods that sit too long without shipping out.
3. Automate order routing
Does your 3PL offer intelligent order routing? They should. Smart order routing will send shipments from the closest fulfillment center to your customers. This will reduce carrier fees and speed up delivery times.
4. Consolidate shipments and packaging
You should bundle items to reduce shipping costs. You can avoid extra costs due to extra materials, labor and weight charges entirely with this step alone.
5. Watch for hidden fees
Before you sign up for fulfillment services, ask your potential provider to clarify if they charge for:
- Peak season surcharges
- Manual order processing
- SKU audits or recounts
- Monthly minimums
Build a Smarter Fulfillment Strategy with Cart.com
Understanding fulfillment center pricing is essential to managing margins and delivering a consistent, high-quality customer experience. Especially for larger companies with volumes of 5000 orders a month or more, the key to expert fulfillment is choosing the right provider, managing inventory appropriately and using advanced technology to facilitate your internal processes.
If you’re in a state of growth and need to scale your fulfillment operations on the fly, Cart.com is here to help. Our nationwide network, intelligent technology and flexible pricing makes us a first-choice 3PL provider for many well-known brands.
Want to know more about fulfilment center pricing? Contact us today!