"So there's the setup fee, plus a storage fee for our pallets, can't forget about the pick and pack fee, and the setup fee — wait, I already added that one..."
Sound familiar? Between pick and pack fees, account setup costs, and scaled fees for custom packaging, you and your team could spend hours trying to decipher what each cost will mean for you. Here's a breakdown of what you'll actually see on a 3PL invoice, what the fees typically run, and how to avoid getting nickel-and-dimed.
Most 3PLs charge a one-time onboarding fee to integrate with your store, configure your account, and set up your inventory. This can range from nothing to a few thousand dollars depending on the complexity.
| 3PL | Setup fee |
|---|---|
| ShipBob | $0 (no published fee) |
| ShipMonk | Not published (quote-based) |
| Simpl Fulfillment | $0 |
| Industry range | $0 – $3,000 |
| Industry average | ~$425 |
Some 3PLs charge you for the privilege of sending them your inventory. These fees cover unloading, inspecting, counting, and shelving your products when they arrive at the warehouse.
| Fee type | Typical range |
|---|---|
| Per pallet | $4 – $45 (avg ~$10/pallet) |
| Per unit | $0.20 – $0.50 |
| Per 20ft container | $300 – $350 |
| Per 40ft container | ~$500 |
| Hourly rate | $35 – $65/hr |
ShipBob charges $25/pallet standard, or a flat $35 for the first 2 hours plus $45/hr after. ShipMonk waives receiving fees if you follow their prep guidelines, otherwise similar rates apply.
Warehouse space costs money. No way around it. The question is how your 3PL measures it.
| Storage type | Typical range |
|---|---|
| Per pallet/month | $8 – $45 (avg ~$20) |
| Per bin/month | $1 – $15 (avg ~$3) |
| Per cubic foot/month | $0.45 – $0.75 |
| Climate-controlled | $35 – $65/pallet |
| Long-term surcharge (6+ months) | $10 – $25/pallet extra |
For reference: ShipBob charges $40/pallet/month, $10/shelf, $5/bin. ShipMonk runs $25/pallet, $1–$4/bin depending on size.
Storage in metro areas (LA, NYC, Chicago) typically runs 30–50% higher than secondary markets.
This is the big one. The pick and pack fee covers pulling your products from shelves, packaging them, and getting them ready to ship. Most 3PLs charge a base fee per order plus an additional fee per item.
| Fee type | Typical range |
|---|---|
| Base order fee | $2.50 – $5.00/order |
| Per additional item | $0.20 – $1.50/item |
| Custom packaging surcharge | $0.50 – $3.00/order |
| Fragile/special handling | $1.00 – $3.00/order |
| Inserts (flyers, samples) | $0.15 – $0.50 each |
ShipBob includes the first pick free and charges $0.20/item after that. ShipMonk charges $1.80–$3.00 for the first pick (depending on volume) plus $0.35–$0.75 per additional item.
3PLs negotiate bulk discounts with carriers and pass most of the savings to you, keeping a small margin. Typical markups run in the single digits on top of their negotiated rates.
Most 3PLs get 10–30% off retail carrier rates. Expect a peak season surcharge of 5–15% during Q4.
Almost every 3PL has one. If your fulfillment fees don't hit this number, you pay the difference.
| 3PL | Monthly minimum |
|---|---|
| ShipBob | ~$275/month |
| ShipMonk | $250/month |
| Simpl Fulfillment | $750/month |
| Industry range | $500 – $2,500/month |
Here's a hypothetical month for a brand shipping 150 orders at a typical 3PL, 1.5 items per order on average:
| Line item | Cost |
|---|---|
| Storage (2 pallets) | $40 – $90 |
| Receiving (1 pallet) | $10 – $45 |
| Pick and pack (150 orders × $3.20 avg) | $480 |
| Additional picks (75 extra items × $0.50) | $37.50 |
| Packaging materials | $30 – $75 |
| Total (before shipping) | ~$600 – $730 |
That's before actual postage. And before any custom packaging, inserts, or kitting fees.
At Simpl, there's one line item: a flat rate per order starting at $7. That covers pick, pack, and materials. No setup fee. No onboarding fee. No receiving fee. No separate pick charges, no handling costs, no insert fees.
The same 150-order month above? $1,050 flat. That's more than the low end of the itemized example, but you know exactly what you're paying every month, and there's nothing hiding in the fine print.
| Fee | Typical 3PL | Simpl |
|---|---|---|
| Setup | $0 – $3,000 | $0 |
| Receiving | $4 – $45/pallet | $0 |
| Storage | $8 – $45/pallet/mo | Included |
| Pick and pack | $2.50 – $5.00 + per-item | Included in flat rate |
| Materials | $0.15 – $2.00/order | Included |
| Model | 5–6 line items | One flat rate |
Want to skip the fee math? See Simpl's flat-rate pricing →
Industry average is around $3.20 per order for the base fee, plus $0.20–$1.50 per additional item. Total cost for a single-item order typically runs $3.50–$8.00 including packaging.
Most do. The common exception is when you follow their specific prep and labeling guidelines exactly. Simpl doesn't charge receiving fees at all.
Location (metro vs secondary market), order volume, product size and weight, packaging complexity, and whether you need climate-controlled storage. A 3PL in LA will cost more than one in Kentucky for the same service.
Cheapest per-line-item doesn't always mean cheapest total cost. A 3PL with $0 receiving and $2.50 pick fees might have $45/pallet storage and $500 monthly minimums. Compare the total monthly invoice, not individual line items.