If you run a small brand or online shop, a fair range to pay for 3PL warehouse services is usually somewhere between 8 percent and 20 percent of your total sales, once you add storage, pick and pack, and shipping together. On a per unit level, many companies see something like 25 cents to 2 dollars per item for handling, plus storage by the pallet, bin, or shelf, and shipping on top. That range is wide, but it is honest. Real numbers depend on order volume, product size, packaging, and the level of support you want for extras like returns and kitting. If you want a quick benchmark, you can look at public pricing pages such as 3PL warehouse cost and compare them with your own numbers.
That is the short answer. Now comes the messy part: figuring out what those prices really mean, and how to know if you are paying too much or maybe even too little.
What you are actually buying from a 3PL warehouse
People often think of 3PLs as just storage and shipping. Boxes in, boxes out. That picture is too simple.
A typical 3PL warehouse sells you a bundle of separate cost areas:
- Intake of goods (receiving)
- Storage of your inventory
- Order handling (pick and pack)
- Packaging material
- Shipping labels and carrier fees
- Account support and tech (software, integrations, reporting)
- Add ons such as returns, kitting, light assembly, or custom inserts
You do not always see these split clearly on the invoice. Some are hidden in flat fees, others in line items you might skim on a busy afternoon. That is where confusion starts.
Most 3PL quotes look cheaper than they really are until you run the math on a full month of orders.
To make cost feel less abstract, it helps to walk through each part with real numbers.
Common 3PL cost elements and realistic price ranges
1. Receiving and intake
Receiving is when the warehouse takes your goods from a truck, unloads them, checks counts, labels them if needed, and puts them away.
Pricing usually comes in three styles:
- Per pallet received
- Per unit or per carton received
- By the hour
Typical ranges:
| Receiving model | Common price range | Best for |
|---|---|---|
| Per pallet | $5 to $25 per pallet | Stable pallet sizes, bulk shipments |
| Per unit/carton | $0.05 to $0.40 per unit, or $1 to $5 per carton | Smaller items, mixed cartons |
| Per hour | $25 to $45 per labor hour | Unusual or complex products |
Where can you overpay? When you have lots of small deliveries, like weekly cartons or mixed pallets. Each drop triggers a receiving charge. Many brands ignore that when planning cash flow, then wonder why their invoices jump whenever they restock more often.
2. Storage costs
Storage is the monthly rent on your space inside the warehouse. This part is easy to underestimate. It looks small, but over a year it adds up.
Storage pricing usually follows one of these models:
- Per pallet position per month
- Per cubic foot per month
- Per bin or shelf per month
| Storage unit | Rough monthly range | Notes |
|---|---|---|
| Pallet | $10 to $35 per pallet | Standard 40×48 pallet, normal height |
| Cubic foot | $0.40 to $0.90 per cubic foot | More precise, common for small items |
| Bin / shelf | $1 to $10 per bin | Good for slow moving SKUs |
Big cities and coastal states often sit on the higher side of those ranges. Rural areas are often at the lower side. Not a big surprise there.
If your storage bill is more than your pick and pack bill, your inventory is probably sitting too long.
You do not need to become a supply chain expert, but watching how long stock sits in storage (days on hand) can save real money. Slow moving items eat margins quietly.
3. Pick and pack fees
Pick and pack is the labor to grab items from shelves and pack them into a box. This is usually where 3PLs make their money on each order.
Common structure:
- Base fee per order
- Plus per item picked
- Sometimes a fee per box packed
| Element | Typical range | Comment |
|---|---|---|
| Base order fee | $1.00 to $3.00 per order | Covers first item picked |
| Extra item fee | $0.20 to $0.75 per extra item | Often lower at high volume |
| Special handling | $0.50 to $3.00 per order | Fragile, gift wrap, bundles, etc. |
I remember talking to a small cosmetics seller who thought her 3PL was cheap because the base order fee was only $1.10. She was happy. Later she found out she paid 55 cents per extra item, and most orders had 4 or 5 items. Her real handling cost was over $3.30 per order, which changed how she viewed her margins.
A low base fee with high extra item costs can be more expensive than a slightly higher base fee with low add on fees.
4. Packaging material
Some 3PLs include basic packaging in the pick fee. Others bill each box, mailer, label, and filler separately.
Common price ranges:
- Basic mailer: $0.20 to $0.60
- Standard carton: $0.40 to $1.20
- Bubble wrap or paper: a few cents per use, or a flat fee per order
- Custom or branded packaging: cost plus a handling fee
Packaging is not the largest part of the bill, but it matters for brands that ship low value items. If your average order value is $12, an extra 40 cents in material is meaningful. For a $200 order, not so much.
5. Shipping label and carrier costs
Shipping is its own rabbit hole. You have carrier zones, package weights, surcharges, peak fees, and a few odd rules that change all the time.
3PLs usually do one of the following:
- Pass through their discounted rate from carriers with a small markup
- Bill you exactly what the carrier charges them
- Use simple flat rates based on weight and region
The range here is so wide that giving a single number would be dishonest. A one pound parcel inside one state might be $4 to $8. A three pound parcel crossing the country might be $9 to $16 or more, depending on speed and service type.
This is where comparing quotes gets tricky. One 3PL might look expensive on pick and pack but cheap on shipping, if they have strong carrier discounts. Another might be the opposite.
6. Account, tech, and support fees
Many people forget these. They just look at unit economics.
Common extras:
- Account setup fee: $0 to $1,000 as a one time charge
- Monthly account or software fee: $0 to $300+ per month
- Integration fees for each sales channel
- Dedicated account manager fee at higher service levels
Are these bad? Not always. I think if you get strong support and stable software, a fair monthly fee is worth it. But if your volume is low, even $150 per month can skew your cost per order.
How to estimate your real cost per order
To know how much you should pay, it helps to convert all the scattered fees into one clear number: cost per shipped order.
Step by step method
Let us say you ship 1,000 orders per month. Your 3PL charges:
- $500 for storage and receiving together
- $2.00 base pick fee per order
- $0.30 per extra item, with an average of 1 extra item per order
- $0.40 average packaging cost per order
- $7.00 average shipping label cost
- $100 monthly software/account fee
We can work this out in a simple table.
| Cost type | Monthly total | Cost per order (1,000 orders) |
|---|---|---|
| Storage + receiving | $500 | $0.50 |
| Pick base fee | $2,000 | $2.00 |
| Extra items | $300 | $0.30 |
| Packaging | $400 | $0.40 |
| Shipping labels | $7,000 | $7.00 |
| Account fee | $100 | $0.10 |
| Total | $10,300 | $10.30 |
So your average cost per shipped order is $10.30. If your average order brings $45 in revenue and you keep, say, 55 percent after product cost, you can check if this still leaves profit.
This sounds a bit dry, but once you run the numbers for your business, you cannot unsee them. They change how you think about free shipping, discount codes, and packaging choices.
What is a fair amount to pay?
There is no single “right” price, and I actually think phrases like “industry standard” are used too loosely. Instead, you can use some broad benchmarks and then adjust them to your reality.
By share of revenue
- Many online brands spend 8 to 20 percent of revenue on 3PL and shipping combined.
- Light, high value products might land near the lower side.
- Heavy, low value products often sit near the upper side.
If you sell $50,000 per month and your full logistics bill is $6,000, that is 12 percent. That is quite normal. If it is $15,000, that is 30 percent. At that point, something is off, unless your product is very strange.
By cost per order
Here are broad ranges, not strict rules:
| Average order value | Reasonable 3PL + shipping cost per order |
|---|---|
| $20 or less | $5 to $9 |
| $20 to $60 | $7 to $13 |
| $60 to $150 | $9 to $18 |
| $150+ | Often $12 to $25 |
These ranges include shipping. Of course, some brands fall outside. If you sell big furniture, your cost per order will be much higher, but your margins hopefully are too.
Why 3PL prices vary so much
When you start shopping for a 3PL, you run into a frustrating fact. Two providers can be in the same city, with similar warehouses, and quote you very different prices. It is not just profit. It is structure, risk, and priorities.
Volume and seasonality
Warehouses like stable, predictable volume. If your orders show a clear pattern and you commit to a minimum, you are more likely to get better rates. If you sell mostly during one short season, some providers will charge higher storage to cover the quiet months.
Product type and handling complexity
Simple boxes of books cost less to handle than glass bottles with fragile stickers and gift notes. That part seems obvious, yet people are often surprised when quotes reflect it. If your product needs temperature control, special labeling, or serial number tracking, your cost per order will be higher.
Location of the warehouse
Warehousing in large metro areas with expensive real estate and labor will cost more. In return, you may get faster shipping to a big share of your customers. For some brands, paying more for storage but saving on transit time is worth it. Others would rather store goods in a cheaper region and accept slightly longer delivery times.
Service level and support quality
Cheap 3PLs exist. The question is what they leave out. Response times? Inventory accuracy? Packaging quality?
If your 3PL support never replies, it is not really cheap; it is just expensive in a way that does not show on the invoice.
Sometimes it is better to pay a bit more per order for a provider that picks correctly, ships on time, and handles returns without drama. Errors cost money too, they just show up later as customer service tickets, refunds, and bad reviews.
How to compare quotes without losing your mind
Comparing 3PL proposals can feel similar to comparing phone plans or health insurance. Different terms, bundles, and conditions. You might be tempted to just choose the one with the lowest base fee. That is risky.
1. Normalize pricing into one model
Ask each provider for a sample invoice based on your real numbers:
- Expected monthly order count
- Average items per order
- Number of SKUs
- Typical package weight and size
- Expected monthly inbound shipments
Then convert each quote into an estimated monthly total and cost per order. Do not skip any fees. Include storage, receiving, account charges, and anything else they mention in the fine print.
2. Ask the same questions every time
You can keep a simple checklist:
- Is packaging included in pick and pack, or separate?
- What is the minimum monthly bill, if any?
- How are returns billed?
- Are there extra fees for branded packaging or inserts?
- What happens if my volume drops below the estimate?
- What happens if it doubles?
The idea is not to interrogate them, but to make sure you are not comparing apples to oranges.
Hidden costs people rarely talk about
Some costs are not on the 3PL price sheet, but they are very real.
Time lost to poor communication
If you need to send three emails just to get a tracking number fixed, or to resolve a stock discrepancy, that is your time. If you bill your time at any rate in your head, those hours add up.
Customer trust when orders go wrong
Broken items and slow shipping can hurt repeat business. That damage is hard to measure, but you feel it. A slightly higher 3PL cost with fewer errors can actually be cheaper overall.
Inventory stranded or stuck
Sometimes a 3PL has rules or delays for shipping inventory back to you or to another warehouse. If that process is slow or expensive, you might stay locked into a bad situation longer than you would like.
When a 3PL makes sense, and when it does not
Not every business needs a 3PL right away. Some people move too quickly. Others wait too long and burn out packing boxes on their living room floor.
Signs you are ready for a 3PL
- You ship at least 200 to 300 orders per month, most months of the year.
- Order volume distracts you from product, marketing, or sales.
- You do not want to hire and manage your own warehouse staff.
- You plan to grow, but do not want to sign a lease for space.
Signs you might be jumping too early
- Your product is not proven yet, and order volume shifts wildly.
- You do not know your margins, so you cannot judge if a quote is workable.
- You just want a 3PL because it feels “more professional.”
I know that last one is a bit harsh, but it happens. Logistics is a tool, not a status symbol.
Simple ways to control 3PL costs
You cannot control labor rates or carrier prices. You can influence your own behavior though.
1. Reduce the number of SKUs
Each distinct item needs a slot in the warehouse. More SKUs often mean more storage, more picking time, more errors. If you can trim slow moving variations, your storage bill and mental load both go down.
2. Improve forecasting, even roughly
You do not need fancy software. A simple spreadsheet that tracks sales per week can help you avoid overstocking and understocking. Less overstock means less storage cost. Less understock means fewer emergency shipments or unhappy customers.
3. Revisit packaging choices
Sometimes a different box size shifts you into a cheaper shipping tier. Sometimes a lighter filler reduces weight. Once or twice a year, ask your 3PL if your standard packaging setup still makes sense for your order mix.
4. Negotiate after you prove yourself
At the start, most 3PLs will not bend a lot on their prices, which is reasonable. After six to twelve months of steady volume and on time payments, you can ask to review rates, especially pick and pack or storage. They now know you are reliable, which lowers their risk.
Questions to ask before signing a 3PL contract
A contract conversation can feel awkward, but it can save you from surprises.
- How long is the term? Is it month to month or multi year?
- What are the notice periods for ending the relationship?
- How are annual price increases handled?
- Are there penalties for not hitting volume targets?
- How do we handle inventory audits and discrepancies?
- Is there a fee for removing all inventory if I leave?
People often skip that last question. Then they find out that exit fees or removal charges are painful. It is better to ask early.
How this fits into general personal and business decisions
You might be reading this not as a logistics manager, but just as someone curious about how goods move. In the same way people look for better phone plans, insurance, or utilities, picking a 3PL is one more version of “what am I really paying for, and what do I get back?”
Even if you never run a brand, the next time you see free shipping or fast delivery promises, you might think about the warehouse workers picking and packing, the storage costs behind the scenes, and the seller doing math to see if they are still making a profit.
And if you do run a small store or plan to start one, this kind of cost awareness can be the difference between a side project that drains you and a business that quietly supports your goals.
Common questions about 3PL warehouse costs
Q: Are 3PLs always cheaper than doing it myself?
A: Not always. If you ship under 200 orders per month and have low rent, doing it yourself can be cheaper on paper. But you also pay with time and lost focus. Once you cross a certain volume, packing from your home or a small office often becomes more expensive when you count missed opportunities.
Q: Is the cheapest 3PL usually the wrong choice?
A: Not always, but often. Very low prices can signal that the provider cuts corners on support, accuracy, or labor. If you choose a cheaper option, watch error rates and service quality closely. A good rule is to avoid both extremes: the absolute cheapest and the most expensive, unless you have a very clear reason.
Q: How often should I review my 3PL costs?
A: At least once a year, and any time your order volume or product mix changes a lot. A change in weight, dimensions, or average order size can shift which provider or pricing structure works best for you.
Q: Can I push my 3PL to match a competitor’s rates?
A: Sometimes, but I would be careful. Pushing only on price can strain the relationship. Providers have real costs too. It can be more useful to ask: “If I grow to X orders per month, what would my pricing look like?” That way you both think in terms of a long term partnership rather than a one time discount.
Q: What is the single most important number to track?
A: If you had to pick just one, track your full logistics cost per order, including shipping. Then compare it to your average gross profit per order. If cost per order starts to creep up faster than your profit, something in your setup needs attention.
