How 3PL pricing works
Most 3PLs don't charge one flat price. Your total fulfillment cost is a combination of fees for each step your inventory and orders go through: receiving, storage, pick and pack, packaging and shipping, plus any special projects.
The number that matters isn't any single fee. It's your total cost per order for a typical order. That's the only fair way to compare 3PLs that bundle their fees differently.
The main 3PL fees
| Fee | What it covers | Usually charged |
|---|---|---|
| Receiving | Checking in, counting and putting away inbound inventory | Per hour, per carton, per pallet or per unit |
| Storage | Warehouse space for your inventory | Per pallet, shelf, bin or cubic foot, per month |
| Pick and pack | Pulling items and packing each order | Per order, often plus a fee per additional item |
| Packaging | Boxes, mailers, dunnage and inserts | Per order or per package type, sometimes included |
| Shipping (postage) | Carrier cost to deliver each package | Per package, based on weight, size, service and zone |
| Special projects | Kitting, bundling, labeling, Amazon FBA prep | Per unit or per hour |
| Account or onboarding | Setup, integrations, account management | One-time or monthly, varies by 3PL |
What drives your fulfillment cost
- Order volume: higher, steadier volume typically earns better per-order rates.
- Items per order: a one-item order costs less to pick than a five-item order.
- Product size and weight: big or heavy products cost more to store and ship.
- Number of SKUs: more SKUs need more storage locations and more careful picking.
- Inventory turnover: slow-moving stock sits in storage longer.
- Packaging requirements: custom boxes, inserts and gift wrap add time and material.
- Where your customers are: the farther each package travels, the more postage costs.
- Channels and B2B: retailer and wholesale orders often have extra labeling and paperwork requirements.
How shipping costs work (and how to lower them)
For most brands, postage is the biggest part of every order's cost. Carriers like UPS, FedEx and USPS price packages by:
- Weight, or dimensional (DIM) weight for light but bulky packages, whichever is higher.
- Zone, meaning how far the package travels from the warehouse to the customer.
- Service level, such as ground, 2-day or overnight.
That's why warehouse location matters so much. A brand shipping everything from one coast pays high-zone rates to reach customers on the other coast. Splitting inventory between a western and an eastern warehouse shortens the trip for most orders. Boxio ships from Utah and Jacksonville, Florida for exactly this reason. You can see the difference on our interactive shipping map.
Right-sized packaging helps too: a box that fits the product avoids paying DIM weight for empty space.
Want your actual cost per order?
Get a free quoteHow to compare 3PL quotes
- Use the same order profile. Give every 3PL the same monthly volume, average items per order, product dimensions and storage needs.
- Calculate total cost per order. Add pick and pack, packaging, postage and your share of storage for a typical order.
- Ask what's not included. Packaging, receiving, returns, account fees and special projects are common extras.
- Check how postage is billed. Ask which carriers and services they use and whether your rates reflect their volume.
- Look beyond price. Accuracy, on-time shipping and responsiveness affect refunds, reviews and repeat customers. Those costs don't show up on a quote.
Getting an accurate 3PL quote
The more a 3PL knows about your business, the more accurate the quote. Have these ready:
- Average monthly orders, and your busiest month
- Average items per order
- Number of SKUs, plus product sizes and weights
- How much inventory you need to store
- Where your customers are concentrated
- Sales channels, and any B2B or wholesale needs
- Packaging and special requirements (kitting, inserts, FBA prep)
Boxio's free quote form takes about a minute and asks for exactly this. We reply with custom pricing for our Utah and Florida warehouses, usually within one business day.
Frequently asked questions
How much does a 3PL cost?
It depends on your order volume, items per order, product size, storage needs and where your customers are. Most 3PL pricing combines receiving, storage, pick and pack, packaging and shipping fees. The most reliable way to know is a custom quote based on your real order data.
Is shipping included in 3PL pricing?
Usually postage is billed separately from fulfillment fees, based on the carrier, service level, package weight and dimensions, and destination zone. Ask every 3PL how they bill postage so you can compare quotes fairly.
Why do 3PL quotes vary so much?
3PLs bundle fees differently: some charge per order, some per item, some include packaging and some don't. Compare the total cost per order for your typical order, not individual line items.
How can a 3PL lower my shipping costs?
Carrier discounts and smarter packaging help, but warehouse location matters most. Shipping from a warehouse closer to your customers means fewer shipping zones per package, which lowers postage and speeds up delivery.