How much does 3PL fulfilment cost in the UK?
There isn’t one standard price for ecommerce fulfilment in the UK. The cost of using a third-party logistics provider depends on your products, stock levels, number of orders, storage requirements, packaging and the work required to pick, pack and dispatch each order.
For a growing ecommerce business, the important question isn’t simply “what does pick and pack cost?” It is what the total fulfilment operation will cost and what is included in that price.
At 3PLWOW, we prefer to understand the operation before providing a quote. You can see more about our approach on our fulfilment pricing page.
What makes up the cost of ecommerce fulfilment?
A typical 3PL fulfilment operation can involve several different activities. Depending on the business, these can include receiving stock, warehousing, inventory handling, picking products, packing orders, packaging materials, dispatch, returns and additional services such as kitting or subscription box assembly.
This is why comparing fulfilment providers purely on one headline pick-and-pack price can be misleading.
1. Goods-in and stock receiving
Before orders can be fulfilled, products need to arrive at the warehouse and enter the agreed inventory process.
The amount of work involved can vary considerably. A straightforward delivery of clearly identified products may require less handling than stock containing numerous SKUs, mixed products, bundles or additional checking requirements.
A good onboarding process should establish how stock will arrive, how products will be identified and what information is required before deliveries reach the warehouse.
2. Warehousing and storage
Storage requirements are another important part of fulfilment pricing.
The amount of warehouse space required depends on factors including the quantity of stock held, product dimensions, pallet requirements, number of SKUs and how quickly inventory moves through the operation.
Outsourcing warehousing can allow an ecommerce business to grow without taking on its own warehouse lease, racking, equipment and warehouse staffing.
3. Pick and pack costs
Pick and pack is one of the most visible parts of a fulfilment quote.
When a customer places an order, the required products need to be located, picked and packed according to the agreed process.
The work involved can vary depending on the number of products in an order, packaging requirements, inserts, bundles and other handling instructions.
Learn more about how we approach this part of fulfilment on our UK Pick & Pack Services page.
4. Packaging
Packaging requirements can have a significant effect on the overall fulfilment process.
Some brands require relatively simple packaging, while others may use branded boxes, inserts, promotional materials, product bundles or specific presentation requirements.
These details should be agreed before fulfilment begins so that the warehouse has a clear, repeatable packing process.
5. Shipping and delivery
Shipping is another major component of the total cost of fulfilling an ecommerce order.
The appropriate delivery service depends on factors such as parcel size and weight, destination, required service and whether the order is being shipped within the UK or internationally.
Rather than considering postage separately from fulfilment, it is useful to understand the complete cost of getting an order from stored inventory to the customer.
6. Returns processing
Returns are an important part of ecommerce fulfilment and should be considered when comparing 3PL providers.
An agreed returns workflow can help ensure returned products are handled consistently and that your business has a clear process for what happens when an order comes back to the warehouse.
7. Kitting, bundles and subscription boxes
Not every fulfilment operation consists of picking one product and placing it into a standard parcel.
Brands may require product bundles, kits, promotional inserts, subscription boxes or other repeatable assembly processes.
These additional requirements can affect fulfilment pricing because they involve extra warehouse handling and preparation.
If recurring boxes form part of your business, see our Subscription Box Fulfilment Services.
Are there monthly fulfilment fees?
This is an important question to ask when comparing UK fulfilment companies.
Providers can structure their pricing differently, so businesses should understand which charges are included and whether there are additional account, administration, technology or monthly fees.
3PLWOW’s approach includes no monthly subscription and no hidden admin fees. Our aim is to make the operational costs clear when preparing a fulfilment quote.
You can read more on our 3PLWOW Pricing page.
What information is needed for a fulfilment quote?
The more accurately a 3PL understands your operation, the more useful the quotation can be.
Information that can help when preparing a fulfilment quote includes:
- Approximate monthly order volume
- Number of SKUs
- Typical number of items per order
- Product dimensions and weights
- Amount of inventory normally stored
- Sales channels and ecommerce platforms
- Packaging requirements
- UK and international shipping destinations
- Returns requirements
- Kitting, bundles or subscription requirements
When does outsourcing fulfilment make financial sense?
The answer isn’t determined by order volume alone.
Running fulfilment internally can involve warehouse space, employees, equipment, packaging, software, management time and the challenge of dealing with changes in order volume.
For some businesses, outsourcing becomes attractive because it converts much of that operational workload into a service delivered by a specialist fulfilment company.
For others, the biggest benefit is freeing the ecommerce team to concentrate on product development, marketing and customer growth rather than running a warehouse.
Our Order Fulfilment Services page explains how the wider 3PLWOW operation works.
Don’t compare 3PLs on one number
A low headline pick-and-pack rate doesn’t necessarily mean the lowest overall fulfilment cost.
When comparing providers, look at the complete operation: receiving, storage, picking, packing, packaging, shipping, returns, additional charges, technology and the support available when something needs attention.
It is also worth understanding how pricing changes as your order profile changes.
The goal should be to find a fulfilment operation that makes commercial sense while providing the process and support your business requires.
Get a UK fulfilment quote from 3PLWOW
3PLWOW provides ecommerce fulfilment from our North East operation for brands throughout the UK.
We can support stock storage, order fulfilment, pick and pack, returns and connected ecommerce workflows, with the operation agreed around your products and requirements.
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