Pricing Guidelines
How Much Does Outsourced 3PL Cost?
How Much Does Outsourced 3PL Cost?
The answer is complicated. The estimated cost of outsourcing 3PL services is determined by a variety of factors related to your demand and projects. To calculate the cost, you must first determine how much warehousing space you require, what pick and pack strategies will work best for your projects, and what supply chain services you will need to outsource.
Determine Warehousing Space You Need from a 3PL Partners
| Percentage of Utilization | Product Type |
|---|---|
| 40% | Products can't be neatly stacked |
| 50% | Products that stack neatly and turn 10-15 times annually |
| 60% | Non-date-coded products with 10-100 SKUs that turn 10-12 times annually |
| 70% | Products turn 4-6 times annually with 10-100 SKUs and no date codes |
| 80% | Products are stacked tight and neat with no date codes and 1-2 SKUs |
To calculate a general estimate of warehouse space, you can use the method below:
Divide the number of pallets by the maximum stacking height.
To calculate the square footage of each pallet, multiply its length and width.
Multiply the numbers from 1 and 2 above together.
Divide the result of step 3 by your utilization percentage.
Choose a Right Pick and Pack Strategy
| Piece picking | Employees handpick each item for orders as they are received. Not efficient for larger facilities |
| Batch picking | Orders are picked in batches, or multiple items. More efficient for high order volumes. |
| Zone picking | Items are picked from assigned areas/zones and passed to another zone if the order requires items from multiple zones. Much faster than the two methods above. |
| Wave picking | A combination of batch picking and son picking. |
Average Warehousing Services Costs, Pricing, Rates and Fees (2022 updates)
The cost of warehousing services has fluctuated over time and in response to market changes as well as the state of the economy. The table below summarizes key findings from the most recent warehousing cost and pricing surveys.
| Warehousing Service Costs, Pricing, Rates and Fees | 2017 | 2018-2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| Cost Per Square Foot of Warehouse Space | $6.53 | $7.79 | $7.81 | $7.91 | $7.96 |
| Cost of Warehouse Staff Per Hour | $11.44 | $13.32 | $13.47 | $14.00 | $14.97 |
| Corporate Profit % For Warehouses | 8.83% | 7.25% | 9.77% | 11.00% | 10.58% |
| What Percentage Do PL Warehouses Increase Pricing | 2.37% | 3.67% | 3.67% | 5.59% | 3.9% |
| Average 3PL Pick & Pack Price Per 1 item B2B Order | $3.74 | $4.17 | $4.27 | $4.27 | $4.33 |
| Average Warehouse Storage Price Per Pallet Per Month | $13.02 | $13.20 | $14.58 | $14.79 | $16.21 |
| Average Pallet Storage Fee Per Square Foot Per Month | $0.88 | $0.66 | $0.77 | $0.75 | $0.91 |
Warehousing Prices Average Charges for 3PL Warehouse Customers
Do you want to know if outsourcing 3PL is right for your business and how much it will cost? Let’s talk to one of our 3PL experts right now!
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