How to read a 3PL quote: what ecommerce fulfillment really costs

Most fulfillment quotes list the same handful of charges. The differences are in the units: per item, per order, per pallet, per month. A low price per item can end up costing more than a higher price per order, depending on what you sell. Before you compare quotes, put every price next to its unit.

The five charges in almost every quote

1. Receiving

The cost of checking your inventory in. Some warehouses charge per pallet, some per carton, some include it. Ask what happens if the count does not match your shipping notice.

2. Storage

Usually per pallet per month, or per bin or shelf for small items. Ask when the month is counted, and whether a pallet that sits half full costs the same as a full one.

3. Pick and pack

The charge for finding the item, packing it and getting it ready to ship. It is usually per order plus a smaller amount for each extra item. If your orders are mostly one item, the first-item price matters most. If you sell bundles, the extra-item price matters more.

4. Shipping

The carrier cost, plus any markup. Ask whether you get the carrier rate with a flat fee on top, or one combined price. Also ask which carriers they can use, because the right carrier differs by package size and destination.

5. Returns

Usually a per-item handling charge. Ask what is included: opening, inspecting, restocking, or only receiving the box.

Charges that tend to appear later

• Account or monthly minimums. A fee you pay even in a slow month.
• Packaging. Boxes, mailers and tape may be extra.
• Special handling. Oversize, fragile or heavy items, inserts and gift notes.
• Setup and integration. Connecting your store to the warehouse system.
• Long-term storage. Higher rates for inventory that sits.

Questions to ask before you sign

1. Is there an order minimum or a monthly minimum?
2. What is included in the pick and pack price, and what is extra?
3. How do I see my inventory and orders? Is there a portal?
4. How fast do orders go out after they arrive?
5. Who do I call when something goes wrong, and do they answer?

How to compare two quotes

Pick a typical month for your business. Count the units you receive, the orders you ship, the average items per order and the pallets you hold. Price that month on each quote, adding shipping. The total tells you more than any single line.

Our prices

We publish ours so you can run this exercise before you contact us. Pick and pack starts at $2.95 per item, pallet storage is $40 per pallet per month, and returns are $1.50 per item. Shipping labels are quoted per order because the right carrier depends on the package. You can see everything on the pricing page, and read how fulfillment works with us.