Third-party logistics costs are often presented as a single pick-and-pack rate, but the true cost of outsourcing fulfilment involves several components. Understanding each one — and how they interact with your order volumes and product mix — lets you model costs accurately and compare providers on a like-for-like basis.
Every time stock arrives at the fulfilment centre, the warehouse needs to receive it: unload the delivery, check quantities, barcode scan items, and put them away in the correct locations. This is charged as a goods-in or receiving fee — either per unit, per carton, or per pallet. PackPro charges £1.00 per unit received, with no additional pallet or carton fees.
Storage is usually charged per pallet position per week, per cubic metre per week, or per unit per day. For eCommerce sellers with a modest SKU range and high turnover, storage costs are relatively small. For businesses with slow-moving SKUs or seasonal stock builds, storage can become a significant line item. PackPro's storage rate starts from 40p per unit per day.
The pick fee covers selecting items from storage locations and bringing them to a packing station. The pack fee covers boxing or bagging the order, adding any branded inserts, and sealing it for dispatch. These are often combined into a single per-order charge. At PackPro, the all-in pick and pack rate starts from 90p at Starter volumes and drops to 60p at Enterprise volumes as your order count grows.
Postage is charged separately in almost all 3PL arrangements, at cost or with a small handling margin. A good 3PL passes through volume-negotiated carrier rates, giving you access to lower postage prices than you'd achieve on your own. The actual cost depends on parcel weight, dimensions, service level (next day vs 48-hour), and destination (UK vs international).
Returns handling — receiving back a returned parcel, inspecting the item, repackaging if necessary, and restocking — attracts a per-unit returns fee. The rate varies by provider but typically ranges from 50p to £2.00 per return depending on how much processing is involved.
To calculate your fully-loaded cost per order: add goods-in (amortised over expected units sold), daily storage per unit × average days in stock, pick and pack rate, and postage. Our cost calculator does this automatically. For a detailed breakdown of what PackPro charges, see our pricing page.