As your business grows, the complexity of getting products into customers’ hands also increases. Managing storage, packaging, and shipping in-house can eventually slow you down. When that happens, many companies turn to third-party logistics (3PL) providers to handle their logistics.
But what does it actually cost to outsource fulfillment?
The answer depends on your storage needs, product type, order volume, and desired service level. Most 3PLs structure their pricing around a few standard categories.
Core Cost Components
When evaluating a potential fulfillment partner, it’s essential to understand the core costs that make up their pricing model. While exact rates vary by business model and order volume, most fulfillment companies charge for a standard set of services that keep daily operations running smoothly.
Common fulfillment costs include:
- Storage: Monthly fees based on the amount of warehouse space your products occupy.
- Receiving: Charges for unloading, inspecting, and logging inventory into the warehouse management system.
- Pick & Pack: A per-order fee for selecting and packing items. Expect additional charges for multi-item orders or custom packaging.
- Shipping: Rates depend on speed, weight, and destination. Many 3PLs pass along discounted carrier rates to clients due to their bulk shipping volumes.
Add-On Services and Additional Costs
Beyond the core services, most fulfillment centers offer value-added options that can enhance your operations and customer experience at an additional cost. Understanding these extras helps you plan more accurately and align your logistics strategy with your business goals.
Common examples include:
- Kitting & Assembly: For combining multiple items into a single SKU or preparing custom product bundles.
- Returns Management: Involves receiving, inspecting, restocking, or disposing of returned items.
- Custom Packaging: Branded boxes, eco-friendly materials, and inserts add a professional touch but may increase costs.
- Technology & Integrations: Fees for connecting your eCommerce platform or accessing advanced reporting tools.
Typical 3PL Pricing
If you’re exploring fulfillment services for the first time, it helps to understand general cost ranges.
- Simple operations like single-item orders with standard packaging typically cost just a few dollars per order.
- Complex operations, such as multi-item kits, custom packaging, or international shipping, can incur higher costs.
In addition, many 3PLs charge a one-time setup fee and may require monthly minimums to maintain service consistency.
When comparing providers, look beyond the per-order cost and evaluate the total value, including technology, customer support, and scalability. Fulfillment isn’t just about shipping; it’s about building a reliable, efficient foundation for your growing business.
Fulfillment Pricing at Fulco Fulfillment, Inc. (FFI)
At Fulco Fulfillment, Inc. (FFI), our pricing is transparent, comprehensive, and scalable, designed to support businesses at every stage of growth.
For businesses with specialized needs, we offer flexible, project-based pricing quoted in advance using time studies. Services such as kitting, hand assembly, custom packaging, and international shipment documentation help elevate your customer experience and manage complex logistics.
FFI also offers custom pricing for advanced services like unloading floor-loaded containers, labeling products, processing returns, and handling Fulfillment by Amazon (FBA) orders. This flexibility allows you to start small and scale your fulfillment services as your business grows.
Beyond the Price
Outsourcing fulfillment isn’t just about cutting costs; it’s about building the infrastructure for sustainable growth. A reliable 3PL partner helps you:
- Scale without overhead
- Improve delivery speed and accuracy
- Strengthen customer satisfaction through consistent, branded packaging
Partnering with experts also gives you access to carrier discounts, advanced technology, and operational expertise that are costly to build in-house.
So instead of asking, “What does it cost?” consider asking, “What value does it add to my business?”
Connect with experts at Fulco Fulfillment, Inc. (FFI) today to learn more about our flexible, transparent pricing options and discover how outsourcing fulfillment can help you scale smarter.
