How 3PL costs add up
Storage = Storage rate × Storage used
Pick & pack = Fee per order × Orders + Fee per additional item × Orders × (Units per order − 1)
Packaging = Cost per order × Orders
Returns = Return fee × Orders × Return rate
Provider fees = Receiving + Storage + Pick & pack + Packaging + Returns + Account fee
Minimum top-up = max(0, Monthly minimum − Provider fees)
Monthly total = Provider fees + Minimum top-up + Shipping
Cost per order = Monthly total ÷ Orders
Volume is entered once and shared, so every provider is priced on exactly the same workload. If you leave units received empty, the calculator assumes you restock what you ship (orders × units per order). Average units per order can be a decimal such as 1.4: the additional-item fee then applies to 0.4 items per order on average.
Worked example
An illustrative store ships 1,200 orders a month with 1.4 units per order, uses 12 pallets of storage and has a 6% return rate. The three price sheets are made up for this example.
| Monthly cost | Provider 1 | Provider 2 | Provider 3 |
|---|---|---|---|
| Receiving (1,680 units) | $420.00 | $336.00 | $504.00 |
| Storage (12 pallets) | $300.00 | $384.00 | $240.00 |
| Pick & pack + extra items | $3,960.00 | $3,360.00 | $4,188.00 |
| Packaging | $720.00 | $900.00 | $600.00 |
| Returns (72) | $252.00 | $288.00 | $216.00 |
| Account fee | $0.00 | $150.00 | $50.00 |
| Shipping | $9,360.00 | $9,720.00 | $9,000.00 |
| Monthly total | $15,012.00 | $15,138.00 | $14,798.00 |
| Cost per order | $12.51 | $12.62 | $12.33 |
Provider 3 has the most expensive pick and pack, yet the lowest estimated total, because its shipping rate is 30 cents lower per order and shipping is the biggest line. Provider 2 has the cheapest handling but the most expensive shipping. Press Load example to explore how the ranking changes with volume.
How to read the comparison
- Monthly total is your estimated invoice. Cost per order is the number to compare with your in-house costs and to feed into your profit margin.
- Per order excluding shipping isolates the warehouse’s handling price, which is useful when shipping rates are similar or you supply your own labels.
- A minimum top-up warning means you are paying for volume you do not have. Check how far your orders would need to grow for the fees to exceed the minimum.
- Change orders per month to test sensitivity: providers with high fixed fees look worse at low volume and better at high volume.
Common mistakes and limitations
- Comparing only pick and pack fees while ignoring shipping, storage and minimums.
- Mixing storage units. One provider may charge per pallet and another per cubic foot. Convert your storage to the same unit before comparing, or run each provider with its own storage quantity.
- Missing seasonal and long-term fees. Peak surcharges, long-term storage fees and inventory counts are not included unless you add them to the account fee.
- Including one-time costs. Setup and integration fees are not monthly; spread them over the contract term if you include them.
- Receiving units that do not match sales. Growing or seasonal stores receive more than they ship in some months.
Methodology
Each fee is multiplied by its driver (units, orders, storage used or returns) and rounded once to the cent. The monthly minimum is compared with all provider fees except shipping. Cost per order is the monthly total divided by orders and is unavailable when orders are zero. The "lowest estimated cost" label is applied only when two or more providers are compared, and tied totals are all marked. No provider prices are built in; the example values are invented for illustration.
Frequently asked questions
What fees does a 3PL usually charge?
Most price sheets include receiving (per unit, carton, pallet or hour), storage (per pallet, bin, shelf or cubic foot per month), pick and pack (per order plus per additional item), packaging materials, shipping labels, returns processing and sometimes a monthly account fee or minimum. Setup, integration and special projects such as kitting are often billed separately.
How does a monthly minimum work?
If your fulfillment fees for the month are below the minimum, the provider bills the minimum instead. This calculator applies the minimum to all provider fees except shipping, which is how many contracts work; check your own contract wording, as some exclude storage or include postage.
Why is the provider with the cheapest pick and pack fee not the cheapest overall?
Shipping is usually the largest line on a 3PL invoice, so a provider with better shipping rates can be cheaper overall even with higher handling fees. Storage, receiving and minimums also shift the total, especially at low volumes.
Should I include shipping in the comparison?
Yes, if the 3PL buys the labels. Their carrier rates are part of what you are choosing. The results also show the cost per order excluding shipping, so you can compare handling costs separately.
Does the lowest estimate mean that provider is the best choice?
No. It is only the lowest cost for the numbers you entered. Accuracy, delivery speed, warehouse location, integrations, customer service, contract terms and capacity for growth all matter and are not part of this comparison.