Choosing a third-party logistics (3PL) provider can be a big step for new e-commerce sellers, but understanding the costs and fees involved is crucial. 3PLs handle the storage, packing, and shipping of your orders, allowing you to focus on sales and growth. However, their pricing structures can seem complex at first, with various fees and industry terms that might be unfamiliar. This 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. We’ll walk through typical pricing models, explain key terms (like pick and pack, receiving, storage, return processing, and minimums), and even provide an example cost breakdown. By the end, you’ll be equipped to speak with a 3PL representative knowledgeably and ask the right questions about pricing.

Note: While we mention eFS and others, the focus here is on understanding 3PL pricing generally – this is an educational guide, not a sales pitch or pricing for any specific provider.

Jump right in: Understanding 3PL Costs and Fee Structures

• What Is a 3PL and How Do They Charge?
• Receiving Fees (Inbound Processing)
• Storage Fees
• Pick and Pack Fees
• Shipping Costs (Outbound Freight)
• Account Management and Support Fees
• Returns Processing Fees (Reverse Logistics)
• Monthly Minimums and Other Fees to Watch For
• Example: 3PL Cost Breakdown for a Small Online Seller
• Tips for Comparing 3PL Quotes and Asking the Right Questions
• Summary

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. 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 the activities (receiving inventory, storage, number of orders shipped, etc.) and issue an invoice.

Because 3PLs handle multiple aspects of fulfillment, their invoices typically consist of several fee categories. Don’t be alarmed by a long quote – each line item corresponds to a part of the fulfillment process. Common 3PL fee categories include:

• Initial Setup or Onboarding Fees: One-time charges for integrating your store or setting up your account. (Not all providers charge this; some, like eFulfillment Service, have no setup or integration fees.)

   

• Receiving Fees (Inbound Handling): Charges for accepting and processing your incoming inventory shipments.

   

• Storage Fees: Charges for storing your products in the 3PL’s warehouse, usually billed by space used per day or month.

   

• Fulfillment Fees (Pick and Pack Fees): Charges for picking items from shelves and packing orders for shipment. This is often the core service fee.

   

• Packaging Material Fees: Charges for boxes, packing tape, bubble mailers, or other packaging materials if not included in the pick/pack fee.

   

• Shipping Costs (Outbound Freight): The cost of shipping orders to your customers. Often the 3PL passes through carrier rates (sometimes with a discount or small markup). This may be listed separately or combined with fulfillment fees, but it’s a significant part of your overall cost.

   

• Returns Processing Fees: Charges for handling returned products (also called reverse logistics) – inspecting them and restocking or disposing as needed.

   

• Account Management or Support Fees: Ongoing monthly fees for account support, customer service, or use of the 3PL’s software platform. Some 3PLs bundle this into other fees, while others list it as a flat monthly charge.

• Miscellaneous Fees: This can include kitting or assembly fees (for special projects like assembling subscription boxes), long-term storage surcharges (if inventory sits too long), holiday peak surcharges, fees for custom requests, or even minimum monthly fees (if your activity doesn’t reach a certain threshold, some 3PLs charge a minimum – more on this shortly).

Receiving Fees (Inbound Processing)

Receiving fees are what you pay when your inventory arrives at the 3PL’s warehouse. This fee covers the labor and time it takes for the warehouse staff to accept your shipment and get your products ready for storage. When your stock is delivered to the 3PL, their team will unload the boxes or pallets, count the items and verify them against your packing list, inspect for any damage, label the units if needed, and then stow everything in the warehouse storage locations. Essentially, receiving is the work required to move your goods from the delivery truck into the warehouse inventory system.

How Receiving Fees are Charged: 3PLs charge for receiving in different ways, so it’s important to know your provider’s method. Common pricing models include:

• Per Pallet or Carton: A flat fee for each pallet or box received. For example, a typical rate might be $5–$20 per pallet. If you send in 10 pallets of goods, the fee would be roughly 10 × the per-pallet rate. Some 3PLs might charge per carton (box) received, say $2–$5 per box.

• Per Unit (Piece): A fee for each individual item or SKU received, often ranging from around $0.20 up to a few dollars per unit (the rate may depend on the size/weight of the product). This model means if you ship 1,000 units to the warehouse, you pay 1,000 × the per-unit fee.

• Hourly Rate: Charging by the hour for the labor of unloading and checking in stock. This might range roughly $25–$80 per hour. If you send a large, complex shipment that takes 3 hours to process, you’d pay 3 × the hourly rate.

• Per Shipment or Container: A flat rate for an entire incoming shipment (sometimes used for container loads, e.g. $300–$500 per full container). For example, one survey shows an average of about $350 for a 20-foot container.

Each method has its pros and cons. Per-pallet or per-box fees are straightforward, while per-unit fees ensure you pay proportionally to quantity (which could be costly for large numbers of small items). Hourly fees mean you pay for actual time spent, which can be efficient if your shipments are well-organized, but could be higher if there are delays (e.g., if a delivery arrives without proper paperwork, causing extra work). Some 3PLs might combine methods (e.g. a per-pallet fee but if pallets are not packed to a standard, extra hourly charges could apply).

Tips: To manage receiving costs, communicate with your supplier to pack and label shipments in a 3PL-friendly way. Clear packing lists, proper barcodes, and palletizing products as per the 3PL’s guidelines can speed up receiving and reduce errors. Also, clarify with your 3PL what their policy is on handling discrepancies or non-compliant shipments – there could be extra fees if, say, they have to re-label products or deal with a large number of damaged units. Knowing the receiving fee structure will help you anticipate the cost whenever you send inventory replenishments to the fulfillment center.

Storage Fees

Once your products are on the warehouse shelves, storage fees start to accrue. Storage fees (also called warehousing fees or inventory storage fees) are charges for the space your products occupy in the 3PL’s facility. Think of it like paying rent for storing your goods. Storage is typically charged based on the amount of space used and the duration of storage, usually billed monthly (though the calculation might be prorated by day or week in some cases).

Common Storage Fee Models:

• Per Pallet Per Month: A fixed monthly rate for each pallet of product stored. In the U.S., this often ranges from around $15 to $40 per pallet per month (around $20 on average). If you have half a pallet, some 3PLs will pro-rate the fee or have a lower rate for a “half pallet” or “bin” space.

• Per Cubic Foot (or Cubic Meter) Per Month: Charging by the volume your goods occupy. For example, a 3PL might charge around $0.45–$0.55 per cubic foot per month(roughly $0.46/cu ft is an industry average). This model is common if your products aren’t stored on standard pallets (e.g. many small items on shelves). The advantage is you pay exactly for the space used – if your stock shrinks, your fee goes down accordingly. eFulfillment Service, for instance, charges by actual space used and updates it weekly as orders ship out.

• Per Bin or Shelf: A monthly fee per bin (small container) or per shelf used. For example, $3–$6 per bin per month is a reported typical range. This can be good for small items that don’t use a whole pallet; you pay per bin of storage.

• Daily Storage Calculations: Some 3PLs calculate storage on a daily or weekly basis and then bill monthly. For example, they might measure your pallet count each day and use the average or highest number in the month. Others use the month-end count. It’s worth clarifying this detail – if you dramatically reduce inventory mid-month (like a big sale), a daily-average method could save you money compared to being charged on the peak amount for the whole month.

Storage fees can be a significant part of your fulfillment bill – in fact, storage often comprises around 50% of a 3PL bill on average. Efficient inventory management is key: you don’t want to pay for storing more inventory than necessary. Fast-selling products will incur lower storage costs (since they move out), whereas slow-moving stock sitting for months will rack up fees.

Long-Term Storage and Specialty Charges: Ask about long-term storage fees or policies. Some 3PLs charge extra if inventory sits in the warehouse beyond a certain period (e.g., more than 6 or 12 months) – this is to discourage using the 3PL as a long-term warehouse for unsold goods. Others might simply reach out to you to move old stock. Also, if your products need special storage conditions (climate control, secure cage, hazardous materials storage), there may be premium rates. eFulfillment Service, for example, notes that it has no long-term storage fees for standard products, which can be a relief for sellers worried about slow movers. Always check these details, especially if you sell seasonal products that might be stored for many months.

In summary, storage fees are all about space and time. To keep these costs manageable, maintain a good handle on inventory levels: consider using forecasting to send only the stock you need for the near term, and plan promotions or markdowns for items that linger too long on the shelf.

Pick and Pack Fees

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 from your online store, the 3PL’s staff (or robots, in some modern warehouses) will pick the ordered items off the shelves and pack them into a box or mailer with appropriate padding, then label it for shipping. The pick and pack fee (sometimes just called the fulfillment fee) is what you pay for this order handling process.

How Pick & Pack Fees are Structured: There are a few common pricing approaches:

• Per Order Fee: A flat rate charged for each order, regardless of how many items are in it. For example, a 3PL might charge $3 per order fulfilled. This model is simple but often assumes a typical order size of 1–2 items; if your orders often have many items, check if there are additional fees.

• Per Item (Unit) Fee: A fee for each item picked. For instance, $1.00 per item picked and packed. If an order has 3 items, it would cost $3. Some 3PLs using this model might still have a minimum per order or a separate packing fee.

• Hybrid: Per Order + Per Item: This is very common – you’ll see something like “$X for the first item in an order, plus $Y for each additional item.” For example, $2.00 for the first item + $0.50 for each additional item is a typical structure. In this case, an order with one item costs $2.00, an order with two items costs $2.50, an order with three items $3.00, and so on. This kind of tiered fee ensures the 3PL is compensated for the extra work of larger orders without overcharging one-item orders. Many 3PLs offer volume discounts as your order volumes grow too (your per-order fee might drop once you ship a certain number of orders per month).

In general, pick and pack fees can range widely depending on the provider’s efficiency and service level – roughly from $0.50 up to $5.00 or more per order in typical scenarios. One industry survey found that on average B2C e-commerce orders incur about $3.25 per order in fulfillment fees (not including storage and other costs), often structured as around $2–$3 base fee plus $0.50 or so per item. Keep in mind that very low per-order fees might exclude something (like packaging or inserts), whereas higher fees might be “all-inclusive.”

What’s Included? It’s crucial to clarify what the pick and pack fee includes. At minimum, it covers the labor to handle the order (the act of picking products and packing them into a box, plus the shipping label application). But does it include the cost of the box or mailer and packing tape? Does it include any packing slip or marketing inserts you want added? Policies vary:

• Some 3PLs, like eFulfillment Service, include a range of standard box sizes and packing materials at no extra cost (they maintain a list of free stock packaging options for clients). In this case, the pick/pack fee you pay already covers the box and dunnage (which is great for simplicity).

• Other 3PLs charge separately for packing materials – either at cost or with a small markup. For example, a provider might charge $1.00 per box used, or add 10-20% on top of the box manufacturer’s price. Packing tape, labels, and filler paper might be baked into that, or listed separately (though usually boxes are the main cost). Insert fees (for adding a brochure, coupon, or gift message to the order) could also be a separate line item, say $0.15–$0.30 per insert, if you utilize that service.

• Some providers use the term “fulfillment fee” to encompass both the labor and materials, while others split them out as “pick & pack fee” (labor) and “packaging supplies” (materials). Always ask for clarification so you know if you’ll be billed for boxes or other consumables on top of the base handling fee.

Given that pick/pack is usually charged per order, one way to estimate your cost per order is to take the quoted pick/pack fees and add any expected packaging cost. For example, if you expect an average order will have 2 items, and your 3PL charges $2.00 + $0.50 per extra item, plus $0.75 for a box, then fulfilling an average order would cost about $3.25 in pick/pack. Being aware of this will help you price your products and shipping correctly to maintain margins.

Tip: If a 3PL advertises a very low pick and pack fee, look closely at other fees. Some providers might lure you with, say, “$1 per order!” but then you discover that doesn’t include any packaging and they also add an “order processing fee” or higher storage charges to make up the difference. As one industry guide notes, some 3PLs offer low order fees but offset that with higher packaging or handling charges, so make sure you get a clear breakdown to avoid surprises. The key is to always evaluate the total cost for your typical order profile, not just one fee in isolation.

Shipping Costs (Outbound Freight)

After an order is packed, it still needs to get to your customer – usually via parcel carriers like UPS, FedEx, USPS, etc. Shipping costs are usually passed through from the 3PL to you, meaning you’ll ultimately pay the postage or carrier fee for each shipment. However, how a 3PL handles shipping charges is an important part of understanding your fulfillment costs.

Most 3PLs have carrier accounts and can often get discounted shipping rates thanks to the high volume of packages they send. A good 3PL will typically offer you shipping at their bulk rate, which can save you money compared to retail shipping costs. For example, many 3PLs provide 10-30% discounts off standard carrier rates for services like FedEx Ground or USPS Priority. It’s worth confirming: Do they pass 100% of those discounts to you? Some 3PLs might even charge slightly less than their cost (as a value-add), but others might use a cost-plus model, adding a small markup on shipping. In fact, about 62% of 3PLs use cost-plus pricing for shipping (e.g., adding a 5-10% markup), while around 24% simply give a discount off published rates. Always ask the 3PL how their shipping pricing works – is it published rates, discounted rates, or do they add any surcharges on each label?

What to Look Out For:

• Zone and Weight Considerations: Shipping cost itself depends on package weight, dimensions, destination zone, and service speed. While the 3PL isn’t setting those base costs (the carrier is), a knowledgeable 3PL can help optimize this. For instance, they might have multiple warehouse locations to ship from a closer location, saving on zones. But multiple warehouses might increase your inbound costs and complexity, so for new sellers usually one warehouse centrally located (like eFulfillment Service’s Michigan warehouse) is a good balance.

   

• Shipping Account Options: Some 3PLs let you use your own carrier accounts if you have negotiated rates. Be aware: if you go that route, a few 3PLs might charge an extra handling fee (like $1–$3 per order) for using an external shipping account, since it’s more admin work for them.

   

• Surcharges: Carriers have their own surcharges (fuel surcharges, residential delivery fees, peak season surcharges around holidays, etc.). Your 3PL quote may not explicitly list these, but they will reflect in your shipping charges. It’s good to ask if the 3PL’s rate quotes include those or if they get billed after. A 3PL’s shipping software might automatically choose the cheapest carrier/service for each order – for example, eFulfillment Service’s system will select the lowest cost option among available carriers for each package – which can be a big help for cost efficiency.

   

In summary, shipping costs are a major part of fulfillment, but they’re not a “fee” from the 3PL in the same way receiving or storage is – rather, it’s a pass-through expense that you should factor into your overall fulfillment budget. When comparing 3PLs, check their approach to shipping: a provider offering slightly lower pick fees but higher shipping rates might end up more expensive overall than one with a higher pick fee but excellent shipping discounts. The goal is fast, affordable delivery to your customers, so partner with a 3PL that optimizes shipping costs and is transparent about how those costs are calculated. Don’t forget to build these into your own shipping charges to customers or product pricing strategy so you maintain healthy margins.

Account Management and Support Fees

While many 3PL fees are tied to tangible activities (boxes moved, orders shipped, etc.), some providers charge account management fees or other fixed recurring fees for the services that support your account. These might appear as monthly administrative fees, technology fees, or support fees on a quote.

For example, a 3PL might have a flat monthly fee (say $50 to $200 per month) that covers access to their warehouse management software, integrations with your shopping cart, and general customer support. In one pricing model illustration, a “customer support cost” was $100 per month flat – essentially an account management fee. Another 3PL might not have a flat fee, but instead an “order processing” fee of $1 or $2 per order to cover these overheads (this is similar to what some providers call an order handling fee or technology fee). For instance, it’s noted that some 3PLs apply an order fee via their WMS for each order, typically around $1–$2, rather than a monthly fee.

Integration or Setup Charges: Closely related are the one-time setup or integration fees we mentioned earlier. These are often for the initial tech setup – connecting your e-commerce platform, setting up EDI feeds if needed, or customizing their system to your needs. The industry ranges for setup fees are wide ($150 up to $1,500 or more depending on complexity). Some 3PLs also charge ongoing software licensing or maintenance fees (like a monthly fee for using their software platform) which can range from $10 up to several hundred dollars a month in extreme cases. The good news is that many 3PLs serving small and mid-sized sellers don’t charge ongoing tech fees – they roll those costs into their per-order pricing. eFulfillment Service, for example, explicitly has no integration fees or long-term contracts and uses what they call a “comprehensive support fee” model that is minimal and covers software and onboarding support.

When evaluating quotes, take note of any recurring account fee. If one provider charges $0 in monthly fees and another charges $100, that doesn’t automatically mean the first is cheaper – the second might have slightly lower storage or pick fees to offset it. It’s all part of the package. However, a benefit of no monthly fees is that if you have a very slow month, you’re not paying extra on top of low activity. Conversely, if you do very low order volume, some providers might rely on that flat fee to cover the cost of providing you the service at all.

The key questions to ask the 3PL rep: “Are there any monthly minimums or account fees I should be aware of beyond the per-unit costs? Is there a charge for software, support, or integrations?” We’ll cover minimums next, as that’s another way some 3PLs ensure they recoup costs for smaller accounts.

Returns Processing Fees (Reverse Logistics)

In e-commerce, returns are an inevitable part of doing business – especially in categories like apparel or electronics. If you plan to have customers send returns back to your 3PL, you should understand return processing fees. This fee (sometimes just called a return fee) covers the work the 3PL does when an item comes back from a customer.

What happens during returns processing? Typically, the 3PL will receive the returned package, open it, compare the returned items against the return merchandise authorization (RMA) or packing slip, and assess the item’s condition. If the item is in resalable condition, they will restock it into inventory; if it’s damaged or not suitable to resell, they’ll mark it as unsellable (and either hold it for your inspection, dispose of it, or return it to you, depending on your policy). They’ll also update the inventory records accordingly. Essentially, it’s like a mini receiving process combined with quality control.

How Returns Fees are charged: Most commonly, returns are charged per return shipment or per item returned. For example, a 3PL might charge $2.00 per return (regardless of items) or perhaps $1–$3 per item returned. Some may have a slightly higher fee if an order has multiple items to check. Industry ranges often cited are about $1 to $6 per return depending on complexity. If any repackaging is needed (like putting a new polybag or reboxing an item), there might be extra material charges. In rare cases, if your returns require special processing (like testing electronics or repacking kits), a 3PL might quote an hourly rate for returns or treat it as a special project.

For new sellers, it’s easy to overlook return fees when calculating fulfillment costs, but they can add up if your return rate is significant. For instance, 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 in. Make sure to ask 3PLs: “How do you handle returns and what do you charge for returns processing?” Also clarify if they’ll automatically put good items back into stock (and how quickly), and how they’ll notify you of any damaged returns.

Tip: Having a good returns management process with your 3PL can enhance customer satisfaction (fast refunds or exchanges) and recoup value from returned merchandise. A provider like eFulfillment Service highlights comprehensive returns management in their service, which suggests they have a clear system for it. Ensure whichever 3PL you use has a process you’re comfortable with, and that you budget for those return fees if your business model expects a lot of returns.

Monthly Minimums and Other Fees to Watch For

Lastly, let’s talk about minimums and miscellaneous fees. Not every 3PL will charge these, but it’s important to know about them so you can ask or check your contract.

Monthly Minimum Fees: Some fulfillment centers require a minimum monthly billing or order volume. This means if your total fees for the month don’t reach a certain dollar amount, they will charge you up to that minimum. For example, a 3PL might have a $1,000 per month minimum. If your activity in a slow month only incurred $300 in fees, they would still charge you $1,000 (often, they’d list an extra $700 “minimum charge” to meet the required minimum). Minimums can also be defined in terms of order count – e.g. some providers asked for at least 500 orders per month, effectively pushing out very small clients. These practices became more common when fulfillment centers were very busy and wanted to prioritize larger clients. According to one report, some 3PLs set minimum invoice requirements of $1,000, $5,000, or even $10,000 monthly, making it too expensive for smaller sellers to stay.

The good news is that not all 3PLs enforce minimums. Many providers that cater to startups and small businesses advertise that they have no minimum order requirements or no monthly minimum fees. eFulfillment Service, for instance, explicitly has no order minimums and no long-term contracts, which is a big plus for new sellers who might start with low volume. When comparing 3PLs, be realistic about your volume and beware of a minimum that you might not meet – otherwise that minimum could become a significant fixed cost each month. If a 3PL does have a minimum, ask if it’s temporarily waivable or scaled (some might waive it for the first few months as you ramp up, or have a tiered minimum that grows as your volume is supposed to grow).

Other Miscellaneous Fees: Here are a few additional fees that might appear in some 3PL quotes or contracts – make sure to scan for these and ask if they apply to you:

• Setup Fees: As covered before, a one-time fee for setting up your account or integrating systems. It might be called onboarding fee or administration fee. If a quote has this and another doesn’t, factor it in (spread over your first year of costs, it might not be too bad, but it’s still money out of pocket initially).

   

• Kitting/Assembly Fees: If you have special projects – for example, bundling three separate SKUs into a kit to sell as one unit, or assembling subscription boxes – there are usually labor fees for that outside of normal pick/pack. Often charged hourly (like $30–$50/hour) or per kit assembled. If you know you’ll need this, get a rate from the 3PL beforehand.

   

• Special Handling Fees: This could include things like dangerous goods handling, expiration date management, lot tracking, or quality inspections. Not all businesses will need these, but if you do (say you sell cosmetics that need batch tracking), ensure the 3PL can do it and find out if there’s an extra charge.

   

• Long-Term Storage or Inactivity Fees: We touched on long-term storage – some warehouses might charge extra for items stored over X days. Also, a few 3PLs might charge an inactivity fee if you have no orders at all in a month but still have inventory stored (essentially a variant of a minimum fee to cover account maintenance).

   

• Outbound SKU Labeling or Prep Fees: If your products arrive without barcodes and the 3PL has to label each item, that might incur a per-unit fee. Similarly, if they perform Amazon FBA prep services (labeling, poly bagging for Amazon compliance), expect a per-unit charge for those prep tasks (which is separate from normal receiving).

   

• Disposal or Removal Fees: If you need to dispose of unsellable inventory or have it returned to you from the 3PL, there might be fees for that service (often hourly or per item).

   

• Customer Service or Call Center Fees: Rare in standard 3PL offerings, but some full-service logistics companies can handle customer calls/emails about orders for a fee. Most new e-commerce sellers won’t use this, but good to be aware of what’s available.

   

The presence of some of these fees isn’t necessarily a deal-breaker – it depends on your needs. The key is transparency: a reputable 3PL will clearly outline any potential fees in their proposal or contract. If you see a fee that’s unclear, ask for an explanation or an example of when it would apply.

Example: 3PL Cost Breakdown for a Small Online Seller

Let’s bring it all together with a hypothetical example. Imagine you run a small online store based in the U.S. that sells home goods. In one month, you send some inventory to your 3PL and fulfill orders for your customers. Here are the assumptions for our example month:

• You shipped 2 pallets of new inventory to the 3PL at the beginning of the month.

   

• On average, you had about 5 pallets’ worth of products stored in the warehouse throughout the month (some sold and were shipped out, and you did not restock again within that month).

   

• You received and shipped 100 customer orders during the month. Let’s say each order had an average of 2 items in it.

   

• You had 5 orders returned by customers that the 3PL processed as returns.

   

• The 3PL in this example does not charge any monthly account fee, but they do have a $500 monthly minimum billing (we’ll see how that plays out). Also assume standard packaging is not included in pick fees, so it’s billed separately per order.

   

Now, using some typical fee values, here’s what your 3PL invoice might look like for that month:

Table: Hypothetical 3PL invoice for one month (illustrative example). This example uses arbitrary rates for demonstration. Actual 3PL pricing will vary. In this scenario, the calculated total was $435, but because the provider had a $500 monthly minimum, the seller ends up paying $500 for the month.

In the above breakdown:

• We assumed receiving is charged per pallet, storage per pallet per month, and pick/pack with a first-item + additional item model. Packaging was charged per order, and returns per return.

• The “Subtotal” of usage-based fees was $435. Because the provider in this example requires a $500 minimum monthly billing, an extra $65 is tacked on, bringing the total to $500. If this seller’s volume or fee totals grow in future months (exceeding $500), then they would just pay whatever the actual total is (or whatever other fees apply if higher).

This example illustrates a few key points:

1. Multiple Small Fees Add Up: Even if each fee individually seems small (a few dollars here, cents there), the total for a month combines storage, picks, packing, returns, etc. Knowing your approximate order volume and storage needs lets you estimate these and budget accordingly.

2. The Impact of Minimums: The minimum fee in this case turned what would have been a $435 bill into a $500 bill – effectively an extra cost for not hitting the volume threshold. If you’re a new seller, you want to avoid consistently paying for unused capacity like that. In this example, choosing a 3PL with no minimum would have saved $65 that month (or conversely, increasing order volume would “use up” that $65 in services).

3. Scaling with Volume: If next month this seller doubles their orders to 200 (with similar storage), the pick/pack and ship fees would roughly double as well, but they wouldn’t face a minimum surcharge since they’d be well over $500. The cost per order might even drop if the 3PL offers volume discounts at certain breakpoints. It’s important to periodically calculate your fulfillment cost per order by dividing your total invoice by number of orders shipped. In the example month, $500/100 orders = $5.00 per order. That metric helps you gauge efficiency and can be optimized over time (e.g., by increasing average order size so that multiple items ship together for near the same cost).

Remember, the above numbers are not quotes – every 3PL has different rates. But seeing an itemized example helps you understand how each fee contributes to the whole. When you get an actual quote from a 3PL, try plugging in your expected numbers to see what your monthly cost might be. Many providers will even help you with this calculation during the sales process (for example, you provide your order volumes, units, pallet count, etc., and they’ll estimate the monthly cost for you).

Tips for Comparing 3PL Quotes and Asking the Right Questions

Armed with knowledge of these common fees, you’re in a much better position to evaluate 3PL proposals. Here are some practical tips for comparing quotes and communicating with potential 3PL partners:

• Ask for a Detailed Quote Breakdown: Ensure the quote itemizes all the fees we’ve discussed (and any others). If you only get a single number or an extremely simplistic quote, request more details. You need to see rates for receiving, storage, pick/pack, etc., to plug in your own assumptions and calculate the total cost. As we noted earlier, only by calculating the total can you do an apples-to-apples comparison. Don’t be shy about using a spreadsheet to compare multiple 3PLs across all the fee categories with your data. This will highlight which provider truly offers the best value for your situation. 

• Clarify What’s Included vs. Extra: For each fee category, clarify inclusions. For example, “Does your pick/pack fee include the shipping box and packing materials, or are those separate? If separate, what are those costs?”. Or, “Your storage fee is per pallet – is that assumed a standard pallet height? What if my products are very tall or don’t stack well?” The goal is to uncover any assumptions or potential extra charges now rather than later. 

• Inquire About Minimums and Contract Terms: Always ask, “Is there a monthly minimum fee or minimum order volume requirement?” and “What happens if I don’t meet it?” Also ask about contract length – many small-business-friendly 3PLs won’t lock you into a long-term contract (eFulfillment Service, for example, touts no long-term contracts). Flexibility is important when you’re starting out, since your volumes can change.

• Discuss Scalability and Rate Changes: A good 3PL partner will want to grow with you. Ask if they offer volume discounts at higher order levels, and conversely, how often they increase fees. (It’s normal for warehouses to adjust pricing annually for inflation, etc., but you want to know if there’s a standard annual increase or if rates are locked for a period). Some providers might offer an introductory period of lower rates or waive certain fees initially – get all those details in writing.

• Examine the Tech and Support: Beyond pure dollars, consider the value of the 3PL’s technology and customer service. A slightly higher pick fee might be worth it if the provider has a top-notch order management portal, real-time inventory tracking, and responsive support. You’ll be interacting with their system and team regularly. Ask, “Is your software and integration free to use? Are there any fees for support or training on the system?” Often, the answer is no extra fee (it’s part of doing business), but if there is, you’ll want to know.

   

• Check for Hidden or “Fine Print” Fees: This includes things like long-term storage surcharges, disposal fees, or anything unusual. For example, one hidden fee scenario we mentioned is when a company advertises one storage rate but quietly charges a much higher rate for inventory that sits longer than X months. Another is advertising a low pick fee that only applies above a certain order volume (below which a minimum fee kicks in). Always read the full pricing terms or service agreement. If something is unclear (e.g., “Additional handling surcharge may apply in peak season”), ask for specifics.

   

• Consider References or Reputation: Since this guide specifically referenced eFulfillment Service as a reputable 3PL, you might be wondering how to gauge “reputation.” Look for reviews or case studies of the 3PL, or ask them if you can speak to a current client as a reference. Reliable providers will have no problem with that. A 3PL that has industry awards or recognition (like “Top 3PL” lists) and that has been in business for years is generally a good sign. Ultimately, you want a partner you can trust, because they’ll be handling a crucial part of your business – getting orders to your customers on time.

   

• Don’t Be Afraid to Negotiate (Reasonably): If you really like a 3PL but one fee seems like a sticking point, it’s worth discussing. Some fees are more flexible than others. For instance, they might waive a setup fee to earn your business, or agree to review your rates after 6 months based on volume. On the other hand, don’t expect to negotiate carrier shipping costs – those are mostly out of the 3PL’s control. Focus on things within the 3PL’s operation (pick fees, minimums, etc.) if you need a concession.

   

Finally, remember that the goal is finding the right fit rather than just the cheapest option. You want a 3PL that not only offers fair pricing, but also reliability, accuracy, and services that match your needs (fast shipping, handling your product type well, etc.). The cheapest quote on paper is useless if the 3PL can’t perform or hits you with unexpected fees later. By thoroughly understanding their fee structure now, you’re protecting yourself from those surprises. As the saying goes, “price is what you pay, value is what you get.” You’re looking for a 3PL that offers great value.