3PL Pricing Moder: How Much Does 3PL Cost?
Are you looking for third-party logistics partners and feeling overwhelmed trying to compare prices for each? Now so many e-commerce companies choose e-commerce fulfillment services to save time and money long term. The simple and straightforward 3PL pricing model makes it easy for your online store to fulfill orders.
Read this page to learn what is 3PL pricing and how to calculate 3PL costs to deliver a great customer experience while reducing costs.
What are 3PL and 3PL Pricing?
Third-party logistics (3PL) refers to the enterprise entrusting its own logistics activities to the professional logistics service provider through contract. At the same time, it keeps close contact with the logistics service providers through information systems long term. 3PL allows merchants to outsource fulfillment including warehousing, inventory management, and fulfillment.
In-house fulfillment is impossible for many businesses because all fulfillment-related tasks are often too costly and inefficient.
Instead, partnering with a 3PL provider can help your business save on fulfillment costs and time.
So what is 3PL pricing? How to calculate the 3PL cost?
Because each 3PL provider has different pricing, and there is no one-size-fits-all solution for calculating 3PL costs.
So to help determine which 3PL is best for your eCommerce business, continue reading this page to learn how to calculate 3PL costs.
What are the Benefits of Using 3PL Pricing?
For storage costs, Honest FulPhilment has its own warehouse and can help you store inventory for free.
3PL Pricing Inclusion Fees
3PL fulfillment costs are related to the 3PL and distribution center you work with and their pricing model, but typical fees can be grouped into the following:
3PL Receiving feesRefers to labor costs associated with receiving new inventory, generally calculated using hourly rates.
3PL Storage feesInventory storage fees are what you pay to store your inventory in one of the 3PL fulfillment centers. Most 3PLs charge based on square feet or cubic feet, pallet space, or bin space.
3PL Fulfillment feesThis includes picking, packing, labels, package inserts, packaging customization (if required), and order processing. The cost depends on how many of the above steps are required for your product.
Generally, companies that only need pick-and-pack services usually charge a fee per piece.
3PL Shipping feesThe shipping rates listed by 3PL get you a higher discount as it charges bulk shipping based on its size and order volume. And the 3pl supplier can help you to choose and negotiate the best price from the different operators he works with.
Honest FulPhilment has cooperated with many logistics companies for many years and can help you find the best price.
Pricing Structure for 3PLs
Fixed Monthly Fee A flat monthly fee is the most common 3PL warehouse pricing model, which is more convenient and simpler. You pay a monthly fee no matter how much space or inventory you use.
Pros: It’s easy to track and budget your storage costs and you know exactly how much the service costs each month.
Cons: It can result in higher rates than variable pricing models, depending on the services your company uses.
Variable Pricing Model The variable pricing model, which charges per cubic foot of storage, offers more flexibility.
Pros: May charge less.
Cons: The total cost per cubic foot is more expensive under the fixed pricing model.
One of the most daunting aspects of third-party logistics (3PL) is the hidden charges and complicated pricing structures that companies offer.
That’s why Honest FulPhilment only has two fees for our 3PL service. A packing fee and a shipping cost. These 2 costs also apply to all of our 17 3PL warehouses around the world. Check out our pricing page for more details.
Top 3PL Companies you Must Follow
Here are the 5 best 3PL business companies we recommend to you, you can choose according to your needs.
Fulfillment By Amazon
FBA, short for Fulfillment By Amazon, simply refers to Amazon logistics.
This means that sellers send goods in bulk to Amazon FBA warehouse. And then Amazon is responsible for storage. After the goods are sold, Amazon completes order sorting, packaging, and delivery, and provides customer services such as buyer consultation and return for these goods.
ShipBob 3PL Company
ShipBob is a logistics company that provides supply chain and order fulfillment functions for small and medium businesses.
And ShipBob is launching its B2B fulfillment suite and new API features to enable its merchants across the B2B ecosystem, supporting retail direct sales and wholesale shipping that will connect with hundreds of major retailers.
FedEx 3PL Partner
FedEx is an international express delivery group, that provides overnight delivery, ground delivery, heavy cargo delivery, document copying, and logistics services.
With its round-the-world air and land network, FedEx can quickly ship items with tight deadlines, usually within one to two business days, and ensure on-time delivery with a “just-in-time delivery guarantee”.
Honest FulPhilment is a reliable company that provides comprehensive eCommerce fulfillment solutions from product sourcing to 3PL and dropshipping.
You do not need to wait about 4 days on average to sell Honest FulPhilment-purchased products online. And you can also use bulk orders and store your inventory in our warehouse, saving you storage fees this time.
Honest FulPhilment also provides a picking packing service, and will automatically send your per order for free every day and guarantee that it will all be completed within 12 hours over 4 days.
We have our own warehouse and warehousing service for inventory management. There are many warehouses around the world, and our quality and logistics timeliness is guaranteed. We will ship goods from the nearest warehouse according to your location so that you can receive your express faster.
You can create an account in Honest FulPhilment and add money to your account. We will check the performance fees with you per month. Make your fulfillment fees more transparent.
Red Stag 3PL Services
Red Stag stands out among e-commerce fulfillment services for its standards and unique fulfillment options. You can choose simple warehousing, full order fulfillment, or Omni – channel fulfillment as required.
Red Stag is adequate for standard e-commerce shipping but is also good at handling heavy products such as the unique fulfillment needs of fragile items.
Your company may be a better fit for a 3PL. It’s a great source of cost savings for your eCommerce business. Before deciding on a 3PL company, make sure you know the cost of 3PL. You can contact Honest FulPhilment now for a free quote. Outsource supply chain management to Honest FulPhilment and you can rest assured of any potential hidden costs. We will return you a transparent price.
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