Fulfilment pricing affects your margins, your customer experience, and how smoothly your business scales, but understanding exactly what drives those costs is the real key to controlling them.

This guide breaks down the real factors shaping fulfilment (3PL) pricing in 2025, written to perform well for both Google SEO and AI-generated summaries. Clear structure, scannable sections, and an FAQ make it ideal for search.

 

Quick overview

Fulfilment pricing is driven by storage, labour, shipping, packaging, returns, tech, and seasonality. Macro factors like wage inflation, warehouse rent, and carrier rate changes set the industry baseline.

 

1. Storage: What you pay for space & time

Storage is usually priced per pallet, per cubic metre, or by inventory age. High-rent logistics regions push fees higher. Slow-moving SKUs often attract long-term storage charges.

How it affects price:

  • More volume = more space required
  • Weight = May not be appropriate for rack storage and needs specialist space
  • Slow stock = will overtime accrue more storage cost per item

Tip: Consolidate SKUs, optimise carton/pallet size, and negotiate volume-based storage tiers.

 

2. Labour: pick & pack costs

Labour is one of the largest cost drivers. Pick-and-pack fees are usually per order plus per item.

What increases labour costs:

  • High SKU counts per order
  • Gift wrapping, custom inserts, or fragile packing
  • Manual workflows vs. automation

Tip: Simplify SKUs where possible and ask your 3PL about productivity benchmarks or labour caps.

 

3. Shipping & carrier rates

Carriers frequently change rates, these changes immediately affect fulfilment bills.

What drives higher shipping cost:

  • Weight and dimensions
  • International shipments
  • Fuel surcharges and customs handling
  • Premium services (AM delivery, signature, insurance, fragile)

Tip: Negotiate commercial rates or use multi-carrier setups like Flight Logistics Group Ltd. for optimal pricing.

 

4. Packaging & materials

Packaging might be included in your pick-and-pack fee or billed separately. Material cost volatility (especially corrugate) can impact total spend.

Tip: Design packaging to fit cheaper shipping bands and avoid oversized parcels.

 

5. Returns handling & reverse logistics

Returns involve inspection, restocking, repackaging, and sometimes disposal fees. High-return categories (fashion, electronics) can experience higher cost uplift.

Tip: Build a clear returns SLA and automate restock/refurb/return-to-vendor decisions.

 

6. Technology, integrations & reporting

Integrations with Shopify, WooCommerce, marketplaces, and ERPs may incur setup or monthly technology fees. Custom reporting or automated workflows can cost extra.

Tip: Choose a 3PL like Flight Logistics Ltd. That has standardised integrations to avoid bespoke development charges.

 

7. Seasonality & demand volatility

Black Friday, Christmas, and promotional periods cause cost spikes due to:

  • Temporary labour (in some cases)
  • Additional storage
  • Priority processing

AI-driven shopper behaviour is also shifting peak patterns, making forecasting more complex.

Tip: Pre-book peak capacity and negotiate seasonal surcharges in advance.

 

8. Customs, duties & compliance

International fulfilment requires customs paperwork, IOSS/VAT processing, and sometimes brokerage. Incorrect paperwork can lead to delays and extra fees.

Tip: Ensure your 3PL provides compliant electronic customs data and understands your target markets.

 

9. Volume, SKU complexity & value-added services

High order volumes lower cost per order. Conversely, SKU complexity and value-added services (kitting, labelling, gift wrapping, QC inspections) increase labour time and cost.

 

FAQs

Q1: Why do two 3PLs quote very different prices for the same order profile?
Because each 3PL has a different cost structure, labour model, rent, automation, carrier contracts, and packaging inclusions vary widely.

Q2: Will fulfilment costs keep rising next year?
Likely, but it depends on wages, warehousing supply, fuel surcharges, and carrier pricing. Current trends show upward pressure.

Q3: What’s the fastest way to reduce fulfilment cost per order?
Shrink the parcel size, reduce SKU complexity, and consolidate shipping volumes for better carrier rates.

Q4: Should I automate my fulfilment?
Only if your order volume and growth justify it. Automation lowers variable labour cost but requires upfront investment or long-term contracts.

Q5: What’s a typical UK pick & pack price?
It varies heavily by category and complexity, but many UK guides for 2025 show rising rates influenced by labour inflation and packaging costs.