Discover the Cheapest Fulfilment Centres in the UK

Price pressure is real for online sellers in the UK, and fulfilment is often the biggest controllable line on the P&L after marketing. Finding a centre that is reliable and inexpensive without piling on hidden costs can feel tricky. It is possible though, once you know which costs actually move the needle and which operators tend to be sharper for a business like yours.

Let’s get practical.

What “cheap” really means in fulfilment

Low cost is not a single number. It is a blend of service level, true all‑in cost per order and the flexibility to scale up or down without penalties.

A quote with a low pick fee can end up expensive if storage is inflated or if packaging and returns are loaded with surcharges. Equally, a provider with a slightly higher pick fee might use better carrier contracts, shaving pounds off each label.

There is also the matter of fit. A centre optimised for small, fast‑moving SKUs can be incredibly cost effective for cosmetics, supplements or small electronics, while a bulky furniture seller might pay far less with a pallet‑focused 3PL that contracts space by the square metre rather than the tote.

The winner is the one that gives you the lowest total cost to serve, at the accuracy and speed your customers expect.

The cost components that move your total

Below are the levers that shape your true per‑order cost. Treat the ranges as indicative, since every 3PL prices its own way. Use them to pressure test quotes and identify where to negotiate.

• Inbound receiving
• Storage
• Pick and pack
• Packaging materials
• Shipping label and surcharges
• Returns handling
• Account, software and integration fees
• Minimum monthly spend and other commitments
• Projects like kitting, relabelling or quality checks

Cost component	Typical low-cost range (GBP)	How providers price it	What to watch
Inbound receiving	5 to 12 per pallet, or 15 to 30 per hour	Per pallet, per carton, or hourly	Unloading appointments, off‑peak delivery fees
Storage	2 to 5 per pallet per week, 3 to 8 per cubic metre per week, 0.20 to 0.80 per bin per week	Pallet, cubic metre, or bin	Peak season uplifts, long‑term storage rules
Pick and pack	First item 0.60 to 1.80, additional item 0.10 to 0.40	Tiered by items per order	Surcharges for fragile, oversized, hazmat
Packaging materials	0.10 to 0.60 per order	Included or charged per component	Branded packaging rates
Shipping label	Pass‑through carrier rate, sometimes plus 0 to 0.30 handling	Contracted wholesale rate	Fuel surcharge, remote area fees
Returns handling	1.00 to 3.00 per unit	Per unit inspected or restocked	Photo evidence, testing, rebagging costs
Account or platform fee	0 to 150 per month	Monthly platform or account fee	Per‑user or per‑storefront fees
Integrations	0 to 250 one‑off	One‑off or free via middleware	Ongoing sync fees if using third party apps
Project work	30 to 45 per hour	Hourly labour	Kitting, relabelling, bundle creation
Minimum monthly spend	0 to 1,000	Make‑up to minimum if you fall short	Contract term, notice period

Small differences here compound quickly. Ten pence on packaging across 10,000 orders is a four‑figure swing. A storage model that suits your inventory profile can be worth even more.

Who tends to be cheapest for your profile

There is no single cheapest centre for everyone. Cost tends to correlate with your order volume, SKU count, item size and channel mix.

• Fewer than 200 orders per month, small items, low SKU count

  • Look at SME‑friendly 3PLs with low or zero minimums. Shared‑space providers that price by bin rather than pallet can be very sharp here.

• 200 to 2,000 orders per month, small parcels, D2C and marketplaces

  • Mid‑market 3PLs with good carrier buying power often beat the smallest operators on labels and storage. Ask for a tier that lowers pick fees at 1,000 orders plus.

• More than 5,000 orders per month

  • Larger networks can bring courier rates down and optimise cut‑off times. Some enterprise 3PLs require a minimum monthly spend, which is fine at this volume.

• Heavy, bulky or irregular goods

  • Pallet or floor‑space pricing wins here. Avoid bin‑based providers that are set up for cosmetics or fashion, or you will pay for poor space utilisation.

• Amazon marketplace only

  • FBA can be hard to beat on pick and parcel rates for standard sizes. Keep an eye on storage peaks and long‑term storage rules. For non‑Amazon orders, multi‑channel fulfilment from FBA often carries a premium.

• International destinations or multi‑node storage

  • Operators with UK and EU sites reduce cross‑border friction and delivery times. You can still keep a UK site as a low‑cost hub for domestic orders.

A shortlist of UK 3PLs known for sharp pricing

This is not a ranking, and the best value depends on your profile. The symbols indicate typical cost positioning only.

• Huboo – £

  • Friendly to startups and SMEs, simple setup, solid for small items. Good if you want low commitment and quick onboarding.

• Bezos.ai – £ to ££

  • Pay‑as‑you‑go model, useful for brands testing fulfilment without long contracts. Works well for D2C with multiple sales channels.

• fulfilmentcrowd – ££

  • Transparent online quoting, reliable mid‑market choice. Often competitive on pick rates at mid volume.

• Selazar – ££

  • Tech‑forward with strong integrations. Pricing is fair for brands scaling past the early stage.

• ShipBob UK – ££

  • Attractive for brands that also plan US or EU storage, so you avoid multiple vendors. Not the cheapest for tiny volumes, but carrier rates can be strong.

• Whistl Fulfilment – ££

  • Part of a major delivery group, which can help on postage costs. Tends to suit growing brands with predictable volume.

• James and James – £££

  • Premium service levels, rich reporting, fast cut‑offs. Usually not the lowest sticker price, but all‑in costs can be sensible at scale.

• Zendbox – £££

  • D2C specialist with value‑added services. Better fit when you want fast SLAs and premium packaging.

• Amazon FBA – varies by size and weight tier

  • Tough benchmark for Amazon orders on small standard sizes. Watch storage peaks, aged inventory fees and any multi‑channel surcharges.

Always request a written tariff and a scenario‑based quote using your actual data. Ask for a version without minimums and one with a realistic commitment, so you can weigh flexibility against unit cost.

A quick per‑order model you can copy

Build a simple spreadsheet to compare options on a like‑for‑like basis.

Inputs

• Orders per month
• Average items per order
• Average storage footprint per SKU and total SKUs
• Average parcel size and weight
• Return rate

Costs

• Receiving cost per unit or per hour
• Storage cost per unit of space per week
• Pick fees for first and additional items
• Packaging per order
• Label cost for your parcel profile
• Returns handling per unit
• Account or software fees
• Minimum monthly spend, if any

Per‑order cost formula

• True pick cost = first item pick + (average items per order minus 1) times additional pick
• Storage cost per order = monthly storage total divided by monthly orders
• Receiving cost per order = total inbound cost for the month divided by monthly orders
• Add packaging, label, returns cost per order and any account fee divided by orders

Example scenarios, using midpoints of the ranges above and a 500 orders per month brand with 1.4 items per order, 300 bins of stock, 5 percent returns:

• Sharp SME 3PL

  • Pick: 1.20 + 0.2 times 0.25 = 1.25
  • Packaging: 0.25
  • Label: 2.60
  • Storage: 300 bins times 0.45 times 4.3 weeks = 580.5 per month, or 1.16 per order
  • Receiving: 120 per month, or 0.24 per order
  • Returns: 0.05 times 1.80 = 0.09
  • Account fee: 50 per month, or 0.10 per order
  • Total per order approximately 5.69

• Mid‑market 3PL with better labels and slightly higher pick

  • Pick: 1.45 + 0.2 times 0.35 = 1.52
  • Packaging: 0.20
  • Label: 2.30
  • Storage: 1.00 per order
  • Receiving: 0.20 per order
  • Returns: 0.10 per order
  • Account: 0.08 per order
  • Total per order approximately 5.40

• FBA for Amazon orders only, small standard size

  • Use Amazon’s fee calculator for your SKUs and weight tiers. For many small items, the fulfilment fee compares well, while storage can be punchy in Q4. For non‑Amazon orders, multi‑channel fees often raise the per‑order cost.

This simple frame shows why a slightly higher pick fee can still beat a rock‑bottom quote if the provider saves you on labels and storage. It also highlights the impact of storage on slow sellers.

How to get the best rate without cutting corners

• Package smarter

  • Right‑size cartons to drop into cheaper carrier bands. Consider letterbox‑friendly options for small goods.

• Share real data

  • Give accurate order volumes, split of order sizes, SKU counts and seasonal peaks. It unlocks tiered quotes and avoids risk premiums.

• Ask for matrix pricing

  • Request pick tiers, storage tiers and a carrier matrix by weight and zone. You can plug these into your model.

• Negotiate commitment where it pays

  • If your volume is stable, a sensible minimum or a 12‑month term can secure better tiers. Keep a fair exit clause.

• Consolidate returns

  • Batch returns with a standard inspection flow. Photo evidence reduces emails and labour time.

• Optimise inbound

  • Pre‑barcode, standardise carton sizes, send clean ASN files. Fast receiving reduces your own costs and improves stock accuracy.

• Use their packaging where it is cheaper

  • White‑label packaging is often cheaper than sourcing tiny batches of branded boxes. Use branded inserts to keep the experience on point.

• Review SKU velocity quarterly

  • Cull or move slow movers to cheaper storage formats. Bundle smartly to reduce order lines.

Red flags when a quote looks very cheap

• No written tariff with definitions

  • Watch for vague lines like “special projects.” Ask for each charge spelled out.

• Storage without a unit

  • A flat “storage fee” is a risk. You want bin, cubic metre or pallet rates, plus any Q4 uplift and long‑term storage policy.

• Packaging unspecified

  • If packaging is “included,” clarify which sizes and materials, and what counts as oversized or fragile.

• No carrier matrix

  • Insist on seeing label rates by weight band, service and any surcharges.

• Low pick fee with high additional item charge

  • Many baskets have more than one item. Model your average order to avoid surprises.

• Harsh minimums or steep make‑up fees

  • Make sure the minimum fits your realistic low months, not your peak.

• Slow or vague SLAs

  • Cheap is costly if cut‑off times or accuracy are poor. Ask for real SLAs and historical performance.

FAQs buyers ask during quoting

• Can you mix carriers to get the best label each day

  • Many 3PLs can rate‑shop across Royal Mail, Evri, DPD, DHL and others. Confirm auto‑selection rules and any handling fee.

• Is free storage real

  • Sometimes it is a short‑term promo or a bundle where storage is baked into pick. Ask for the rate sheet behind any free offer.

• What about peak season

  • Some centres add a seasonal uplift on storage or labour. Ask for dates and percentages.

• Can I use branded packaging

  • Yes, but expect a materials surcharge, custom slotting, or project time for kitting.

• Do you handle hazmat, alcohol or temperature‑controlled goods

  • Only certain sites are licensed or set up for these categories. Expect different rates and paperwork.

• Can I bring my own carrier account

  • Many will apply a handling fee per label if you use your own rates. Compare net cost after that fee.

Location still matters

Fulfilment closer to your customers reduces time in transit and failed deliveries. In the UK, many centres cluster in the Midlands, which balances access to most of the population with sensible property costs. If your buyers skew to London and the South East, a site along the M1, M25 or M4 corridor can unlock later cut‑offs and next‑day at lower label costs.

If you ship to Northern Ireland or the Highlands and Islands, look for a provider with established routes and clear remote area pricing. EU shipping from a UK site involves customs and VAT paperwork. Brands with steady EU volume often keep a small EU node in addition to a UK hub.

A mini RFP you can send today

Copy this list into an email or document. The better your brief, the sharper the quote.

• Order volume by month for the last 12 months
• Average items per order and distribution of order sizes
• Number of SKUs, with a small, medium and large example
• Storage now, by pallets, cubic metres or bins
• Inbound profile per month, pallets and cartons, and whether stock is barcoded
• Destinations by percentage, UK mainland, Highlands and Islands, EU, rest of world
• Current return rate and required checks on return
• Channels to integrate, Shopify, WooCommerce, Amazon, eBay, others
• Required SLAs, same‑day cut‑off, cutoff time, accuracy target
• Packaging preferences, branded vs white‑label, sustainable materials
• Special projects, kitting, gift wrap, batch relabelling
• Any required accreditations, ISO, organic, cosmetics, food handling
• Contract preferences, term length, monthly minimum you can commit to

Ask each provider to price two versions:

• No minimums, pure pay‑as‑you‑go
• With a realistic minimum that unlocks better unit rates

Then run your per‑order model. Sort by total cost to serve, not just the pick fee. A short pilot of 30 to 60 days with tight KPIs can validate the numbers before you move all stock.

Quick ways to lower cost without switching providers

• Trim carton sizes so more orders fit into cheaper Royal Mail or Evri bands
• Replace void fill with slimmer options that still protect items
• Pre‑bundle common two‑packs or three‑packs to cut additional pick lines
• Introduce rules for split shipments, only when necessary
• Nudge customers toward standard delivery unless they pay for express
• Reduce WISMO tickets by better tracking emails, which also lowers time your 3PL spends on support

When a premium 3PL is actually cheaper

If your current labels are inflated, a provider with stronger carrier contracts can drop your spend by pounds per order. On a 2.5 to 3.0 label, even a 20 pence improvement pays for a higher pick fee. Faster cut‑off times also improve delivery promises on your website, which often raises conversion rates. That extra revenue can more than cover a small increase in fulfilment fee.

There is also accuracy. A one percent swing in mispicks can cost more than you think once you include reshipments, refunds and damage to repeat purchase.

What to do next

• Map your real cost to serve with the model above
• Shortlist three to five 3PLs that match your profile
• Request a scenario‑based quote, with and without a minimum
• Pressure test packaging and label costs with sample orders
• Run a time‑boxed pilot and measure accuracy, cut‑off performance and customer feedback
• Negotiate a contract that balances unit cost with flexibility

Low‑cost fulfilment in the UK is achievable without cutting quality. The key is to compare like for like, focus on the total and choose a partner set up for your size and product type. With that clarity, the cheapest option for you becomes obvious on paper and in practice.