Choosing a third-party logistics (3PL) provider can be a transformative step for e-commerce sellers, but understanding the costs and fees involved is crucial for making informed decisions. 3PLs handle the storage, packing, and shipping of your orders, allowing you to focus on sales and growth while they streamline your operations.

    However, their pricing structures can seem complex at first, with various fees and industry terms that might be unfamiliar. This comprehensive guide will demystify the common costs and fee structures associated with 3PL providers, so you can interpret quotes with confidence and avoid any surprises on your bills.

    Note: This is an educational guide focused on understanding 3PL pricing generally. At Marketplace Valet, we believe in transparency and helping brands make informed decisions about their fulfillment strategies.

    What Is a 3PL and How Do They Charge?

    A 3PL (third-party logistics) provider is a company that offers outsourced logistics services, which often include warehousing, inventory management, picking and packing orders, shipping, and sometimes additional services like kitting or returns handling.

    Essentially, a 3PL acts as your fulfillment partner: they store your products and take care of getting orders to your customers. In return, you pay them fees for the various services performed.

     Activity-Based Pricing Model

    Most 3PLs use activity-based pricing, meaning you are charged for each specific activity or service involved in fulfilling your orders. At the end of each billing cycle (often monthly), the 3PL will tally up all activities and issue an invoice. 

    Common 3PL Fee Categories

    • Setup & Onboarding
    • One-time charges for account setup and system integration
    • Receiving Fees
    • Charges for accepting and processing incoming inventory
    • Storage Fees
    • Monthly charges for storing products in the warehouse
    • Pick & Pack
    • Core fulfillment fees for picking and packing orders
    • Shipping Costs
    • Carrier fees passed through to customers
    • Returns Processing
    • Fees for handling returned merchandise

    3PL Warehousing Process

    Typical 3PL Cost Breakdown

     

    Receiving Fees (Inbound Processing)

     

     What Are Receiving Fees?

    Receiving fees are what you pay when your inventory arrives at the 3PL’s warehouse. This fee covers the labor and time required for warehouse staff to accept your shipment and prepare your products for storage.

    The Receiving Process Includes:

    • Unloading boxes or pallets
    • Counting and verifying items
    • Inspecting for damage
    • Labeling units if needed
    • Storing in warehouse locations

     How Receiving Fees Are Charged

    Per Pallet or Carton

    Flat fee for each pallet or box received$5-$20 per pallet

    Per Unit (Piece)

    Fee for each individual item received$0.20-$2.00 per unit

    Hourly Rate

    Labor cost for processing shipments$25-$80 per hour

    Per Container

    Flat rate for full container shipments$300-$500 per container

     Pro Tips for Managing Receiving Costs

    • Communicate with suppliers to pack shipments according to 3PL guidelines
    • Provide clear packing lists and proper barcodes
    • Palletize products according to warehouse standards
    • Clarify policies on handling discrepancies or non-compliant shipments

    Storage Fees

     Understanding Storage Fees

    Once your products are on the warehouse shelves, storage fees start to accrue. These fees are charges for the space your products occupy in the 3PL’s facility – essentially like paying rent for storing your goods.

     Important Cost Consideration

    Storage often comprises around 50% of a 3PL bill on average, making it one of the most significant costs to manage effectively.

    Common Storage Fee Models

    Per Pallet Per Month

    Fixed monthly rate for each pallet stored$15-$40 per pallet/month

    Per Cubic Foot

    Charging by volume your goods occupy$0.45-$0.55 per cu ft/month

    Per Bin or Shelf

    Monthly fee per bin or shelf space used$3-$6 per bin/month

     Optimize Your Storage Costs

    • Use forecasting to send only needed stock for the near term
    • Monitor inventory turnover rates regularly
    • Plan promotions for slow-moving inventory
    • Understand any climate control or specialty storage premiums

    Pick & Pack Fees

     The Core Fulfillment Service

    Pick and Pack is the core service of any fulfillment center. It refers to picking items from storage for an order and packing them securely for shipment. Every time an order comes in, warehouse staff will pick the ordered items and pack them with appropriate protection.

    Industry Benchmarks (2025)

    Average B2C Order:$3.25

    Range:$0.50 – $5.00+

    Typical Structure:$2-3 base + $0.50/item

    Pick & Pack Fee Structures

    Per Order Fee

    Flat rate per order regardless of items

               Example: $3.00 per order (assumes 1-2 items)

    Per Item Fee

    Fee for each item picked and packed

               Example: $1.00 per item (3 items = $3.00)

    Hybrid Model (Most Common)

    Base fee + additional item charges

              Example: $2.00 first item + $0.50 each additional
    1 item = $2.00, 2 items = $2.50, 3 items = $3.00

     What’s Included in Pick & Pack?

    Always Included:

    Labor to pick items and pack orders, shipping label application

    Sometimes Included:

    Box, packing materials, packing slips, marketing inserts

    Often Separate:

    Packaging materials ($0.50-$0.80), custom inserts ($0.15-$0.30)

     Watch Out For Low-Ball Pricing

    If a 3PL advertises very low pick and pack fees, look closely at other charges. Some providers offset low order fees with higher packaging charges or storage fees to make up the difference.

    Shipping Costs (Outbound Freight)

     Understanding Shipping Costs

    After an order is packed, it needs to get to your customer via carriers like UPS, FedEx, USPS, etc. Shipping costs are usually passed through from the 3PL to you, meaning you’ll ultimately pay the carrier fee for each shipment.

     Bulk Shipping Discounts

    Most 3PLs have carrier accounts and can offer 10-30% discounts off standard carrier rates thanks to their high shipping volume. This can save you money compared to retail shipping costs.

    3PL Shipping Pricing Models

    62%

    Cost-Plus Model

    Add 5-10% markup on carrier rates

    24%

    Discount Model

    Pass through discounted rates directly

    14%

    Your Account

    Use your own carrier accounts (may incur handling fees)

    Key Shipping Considerations

    Zone and Weight Impact

    Shipping costs depend on package weight, dimensions, destination zone, and service speed. Multiple warehouse locations can help reduce zone costs.

    Carrier Surcharges

    Fuel surcharges, residential delivery fees, and peak season surcharges will be reflected in your shipping charges.

    Automatic Optimization

    Advanced 3PLs use software to automatically select the cheapest carrier and service for each package.

     Pro Tip: Total Cost Analysis

    When comparing 3PLs, evaluate total fulfillment cost. A provider with slightly lower pick fees but higher shipping rates might end up more expensive than one with higher pick fees but excellent shipping discounts

    Returns Processing Fees (Reverse Logistics)

     The Returns Process

    In e-commerce, returns are inevitable. If customers send returns to your 3PL, you should understand return processing fees. This covers the work when an item comes back from a customer.

    What Happens During Returns Processing:

    • Receive and open returned package
    • Compare items against RMA or packing slip
    • Assess item condition
    • Restock if resalable or mark as damaged
    • Update inventory records

    Returns Fee Structure

    Industry Range

    $1-$6 per return

    Per Return Shipment

    Flat fee regardless of items$2.00-$4.00

    Per Item Returned

    Fee for each item processed$1.00-$3.00

     Cost Impact Example

    If 5% of your orders come back as returns and each return costs $3 to process, that’s an extra $0.15 cost per order on average to factor into your pricing.

     Optimizing Returns Management

    • Fast processing enhances customer satisfaction
    • Quick restocking helps recoup value from returned merchandise
    • Clear quality assessment prevents damaged goods from being resold
    • Prompt notifications help track return reasons and trends

    Monthly Minimums and Other Fees to Watch For

    Monthly Minimum Fees

    Some fulfillment centers require a minimum monthly billing or order volume. If your total fees don’t reach a certain amount, they’ll charge you up to that minimum.

    Common Minimum Structures:

    • Low-tier minimums:$1,000/month
    • Mid-tier minimums:$5,000/month
    • High-tier minimums:$10,000+/month

     No-Minimum Providers

    Many providers that cater to startups and small businesses advertise no minimum order requirements or no monthly minimum fees. This flexibility is crucial when starting out with low volume.

     At Marketplace Valet, we believe in supporting growing brands with flexible terms that scale with your business.

    Other Miscellaneous Fees

    Setup/Onboarding Fees

    One-time charges for account setup and integration$150-$1,500+

    Kitting/Assembly Fees

    Special projects like bundling or subscription box assembly$30-$50/hour

    Special Handling

    Dangerous goods, expiration tracking, quality inspectionsVaries by service

    Long-Term Storage

    Extra charges for inventory stored over 6-12 monthsPremium rates

    Prep Services

    Labeling, poly bagging, Amazon FBA compliancePer unit charges

    Disposal/Removal

    Disposing unsellable inventory or returning to youHourly or per item

    Example: 3PL Cost Breakdown for a Small Online Seller

    Scenario: Small Home Goods Retailer

    Shipped 2 pallets of new inventory

    Average 5 pallets stored throughout month

    Fulfilled 100 orders (2 items average)

    Processed 5 returns

    $500 monthly minimum requirement

    Key Insights from Example

    Multiple Fees Add Up

    Even small individual fees combine into significant monthly costs. Understanding each component helps with budgeting.

    Minimum Fee Impact

    The $500 minimum turned a $435 calculated bill into $500 – an extra $65 for not hitting volume threshold.

    Scaling Benefits

    As volume increases, cost per order typically decreases, and minimums become less impactful.

    Monthly Invoice Breakdown

    Fee Category

    Rate

    Cost

    Receiving (2 pallets)

    $10.00/pallet

    $20.00

    Storage (5 pallets)

    $20.00/pallet/month

    $100.00

    Pick & Pack (100 orders)

    $2.00 + $0.50/extra item

    $250.00

    Packaging Materials

    $0.50/order

    $50.00

    Returns Processing

    $3.00/return

    $15.00

    Subtotal (Calculated Fees)

    –

    $435.00

    Minimum Fee Adjustment

    $500 minimum

    +$65.00

    Total Monthly Invoice

    –

    $500.00

    Cost Per Order:$5.00

    $500 total ÷ 100 orders = $5.00 per order

    Tips for Comparing 3PL Quotes and Asking the Right Questions

    Essential Questions to Ask

    Quote Breakdown

    “Can you provide a detailed breakdown of all fees including receiving, storage, pick/pack, and any additional charges?”

    Inclusions vs. Extras

    “Does your pick/pack fee include packaging materials, or are those charged separately? What about packing slips and inserts?”

    Minimums & Contracts

    “Is there a monthly minimum fee or order volume requirement? What are your contract terms and flexibility?”

    Scalability

    “Do you offer volume discounts? How often do you increase fees, and what’s your policy on rate changes?”

     Evaluation Best Practices

    Calculate Total Cost

    Use your expected volumes to calculate total monthly costs across all providers for true comparison

    Look for Hidden Fees

    Watch for peak season surcharges, long-term storage fees, or fine print charges

    Check References

    Ask to speak with current clients and look for industry awards or recognition

    Negotiate Reasonably

    Setup fees and minimums may be flexible, but focus on operational fees you control

    Value Over Price

    Consider technology, reliability, and service quality, not just the lowest quote

     Red Flags to Avoid

    • Extremely low quotes without detailed breakdowns
    • Unwillingness to provide references or transparency
    • Long-term contracts with no flexibility for new businesses
    • Hidden fees that only appear in fine print

    Partner with Marketplace Valet for Transparent, Performance-Driven Fulfillment

    At Marketplace Valet, we believe in transparent pricing and performance-driven results. Our comprehensive e-commerce solutions are designed to help your brand thrive while maintaining cost efficiency and operational excellence.

    Transparent Pricing

    No hidden fees or surprise charges – you know exactly what you’re paying for

    Performance-Driven

    Every dollar invested is backed by data-driven strategies for maximum ROI

    Scalable Solutions

    From startup to enterprise, we grow with your business needs

    Ready to Optimize Your Fulfillment Strategy?

    Use this guide to evaluate potential 3PL partners and make informed decisions about your fulfillment strategy. Remember, the goal is finding the right fit for your business, not just the cheapest option.

    Price is what you pay. Value is what you get.