If you're considering outsourcing fulfillment, there's probably one question pretty high on your list: how much does a 3PL cost?

There's no universal price tag. Your fulfillment costs depend on factors like order volume, how much inventory you store, the products you sell, your packaging needs, and where your orders are going.

Most 3PL pricing includes some combination of receiving, storage, pick and pack, packaging, shipping, and returns. Understanding what each cost covers makes it much easier to compare providers and know what you're actually paying for.

How Does 3PL Pricing Work?

A third-party logistics provider, or 3PL, handles fulfillment operations on behalf of your business. You send inventory to the 3PL's warehouse, and its team stores your products, processes incoming orders, picks and packs them, and gets them on their way to customers.

Because every eCommerce operation looks a little different, most 3PLs build pricing around the resources required to fulfill your orders.

A business shipping 300 small, lightweight products each month won't have the same fulfillment needs as a business sending thousands of large or fragile orders. Even brands with similar order volumes can have very different costs based on how much inventory they carry and what goes into packing each order.

That's why it's important to understand more than the total at the bottom of a quote. You should know what you're paying for and how those costs may change as your business grows.

What Costs Do 3PLs Typically Charge?

Pricing models vary by provider, but there are several fulfillment things you'll commonly see in a 3PL quote.

Not every provider structures these fees the same way. Some services may be bundled together, while others are billed separately, so a lower initial quote doesn't always mean lower fulfillment costs once everything your business needs is factored in.

How Much Does Receiving Inventory Cost?

Receiving fees cover the work required when inventory arrives at the fulfillment center. The warehouse team may need to unload the shipment, verify quantities, inspect products, enter inventory into the system, and move everything into the appropriate storage locations.

Some 3PLs charge based on the time required to receive a shipment. Others may price receiving by pallet, carton, unit, or shipment.

When comparing receiving costs, ask what happens when something doesn't go according to plan. If quantities don't match your records or inventory arrives damaged or improperly labeled, the warehouse may need to do additional work. Knowing how those situations are handled and billed can save you from surprises later.

How Do 3PL Storage Fees Work?

Once your inventory has been received, you're paying for the warehouse space it occupies.

Storage may be calculated by pallet, shelf, bin, or cubic footage, which means both your inventory levels and product dimensions can affect your monthly costs.

Sending far more product than you need can increase storage costs and leave cash tied up in inventory. Too little inventory creates a different problem if you're constantly running the risk of selling out.

At ShipDaddy, clients can monitor inventory levels through our web-based software and receive stock replenishment notifications, making it easier to see what's in the warehouse and when it's time to send more.

What Are Pick-and-Pack Fees?

Pick and pack covers the hands-on work of getting an order ready to ship. When an order comes in from a customer, someone needs to locate the correct product, verify the order, and package it according to the brand's requirements.

A 3PL may charge per order, per item picked, or use another pricing structure based on the complexity of the fulfillment process.

For example, fulfilling a single T-shirt requires less labor than packing an order with several SKUs, branded tissue paper, and a promotional insert. If your business uses custom packaging, bundles, subscription boxes, or specific packing instructions, share those details when requesting a quote so the pricing reflects how your orders will actually be fulfilled.

Is Shipping Included in 3PL Pricing?

Shipping costs are generally separate from the warehouse work involved in fulfilling an order.

What you pay depends on the package's size and weight, destination, carrier, and service level. Dimensional weight can also affect the rate, particularly when a package takes up a lot of space relative to its actual weight.

One potential advantage of working with a 3PL is access to discounted shipping rates. Because fulfillment providers ship orders for many businesses, they may be able to negotiate carrier rates that an individual eCommerce brand couldn't access on its own.

Are There Other 3PL Fees to Consider?

There can be. Depending on the provider and your fulfillment needs, you may encounter fees for account setup, software integrations, minimum monthly order volumes, returns, special projects, or packaging materials.

This is one area where asking specific questions upfront pays off. Find out what's included in your quoted rate, what costs extra, and under what circumstances your fees could change.

At ShipDaddy, we believe fulfillment pricing should be transparent and easy to understand. We make invoices easy to read, so you can look at them and know exactly what you're paying for.

What Makes 3PL Fulfillment Costs Go Up?

Order volume can affect your fulfillment costs, but it's not the only factor. Costs may also change as you add SKUs, carry more inventory, introduce custom packaging, ship heavier products, or begin sending orders to new destinations.

Seasonality matters, too. If your business normally ships 500 orders per month but expects several thousand during the holidays, your fulfillment needs change with that volume. You'll likely have more inventory arriving and sitting in storage, along with a much larger number of orders that need to get out the door on time.

If your business is growing quickly, ask potential 3PL partners how their pricing and operations scale with you. You want to understand what changes when your order volume does, especially before a major promotion or peak season puts your fulfillment operation to the test.

Is Using a 3PL Cheaper Than Fulfilling Orders Yourself?

It can be, but comparing the two takes more than looking at what you currently spend on postage.

In-house fulfillment can involve warehouse or office space, labor, packing materials, software, equipment, and carrier costs. Your team is also spending time receiving inventory, packing orders, managing returns, and handling fulfillment problems.

For a growing eCommerce business, those demands can add up well before you've built a formal fulfillment department.

A 3PL gives you access to an existing fulfillment operation rather than requiring you to build one yourself. Whether outsourcing makes financial sense depends on your order volume, products, internal resources, and plans for growth.

If fulfillment is taking more time and space than it used to, learning more about when to outsource eCommerce fulfillment can help you decide whether it's time for a change.

How Should You Compare 3PL Quotes?

To get a useful comparison, give each provider the same information about your business. That should include your order volume, SKU count, product dimensions, inventory levels, packaging requirements, sales channels, return volume, and any special services you need.

Then look at what you're receiving for the price.

• How quickly will your orders be fulfilled? 
• Can you see inventory levels in real time? 
• How do your eCommerce stores connect to the fulfillment system? 
• If there's an issue with an order, how do you get help?

That last question is easy to overlook when everything is running smoothly. It becomes much more important when you need an answer quickly.

ShipDaddy clients get a dedicated account team and direct support through Slack. Instead of wondering who's handling an issue or waiting for a support ticket to make its way through a queue, you have a team you can reach when you need them.

Find the Right Fulfillment Fit for Your Business

Understanding 3PL costs comes down to knowing what you're paying for, what could cost extra, and whether the provider can support your business as it grows.

A good quote should give you that clarity before you sign on the dotted line.

If you're curious what fulfillment could look like for your business, connect with our team to talk through your order volume, inventory, and shipping needs. We'll help you understand what your fulfillment operation would require and what it would cost. Your free quote is waiting.