The 2018-2019 Warehousing and Fulfillment Costs & Pricing Survey gathers data from over 600 warehouses each year, with 62 targeted questions on costs, pricing, and performance metrics. Our data shows where costs are rising, whether you’re a 3PL provider, a retailer using fulfillment services, or a company managing your own warehousing.
All Survey Findings from 2017-2024:
What The 2018-2019 Survey Results Mean for Warehouse Customers:
- Increased B2C and B2B Fulfillment Costs: The cost for B2C pick and pack services rose from $2.64 in 2017 to $2.86 in 2018-2019, while B2B pick and pack prices jumped from $3.74 to $4.17 in the same period. If you’re using these services, expect slightly higher fulfillment costs, particularly for bulk or business-to-business shipments.
- Rising Setup and Account Management Fees: In 2018-2019, 53% of warehouses charged an average setup fee of $336, and 56% added a $226.54 monthly account management fee. If you’re onboarding new warehousing partners, these fees can impact your overall costs, so factor them in when choosing a provider.
- Reduced Ground Shipping Discounts: Ground shipping discounts offered by warehouses dropped from 24% in 2017 to 20.02% in 2018-2019, which may increase shipping costs for ground deliveries. However, there was a notable increase in Less-Than-Truckload (LTL) shipping discounts from 44% to 51.33%, potentially benefiting those with large, freight-based shipments.
- Returns Fees: If your business deals with returns, be aware that 84.62% of warehouses charged an average return fee of $3.53 per return in 2018-2019. This fee could add up depending on the volume of returns you process.
- Stable Discounts for Pick-and-Pack Services: Around 74% of warehouses consistently offered discounted pick-and-pack rates, unchanged from 2017, which may help offset some of the cost increases elsewhere.
What The 2018-2019 Survey Results Mean for Warehouse Owners:
- Rising Labor and Management Costs: The average hourly wage for warehouse staff increased from $11.44 in 2017 to $13.32 in 2018-2019, while management salaries saw a similar rise from $47,478 to $50,524. Expect higher labor costs as a significant part of your operational expenses.
- Increased Real Estate Costs: The cost per square foot of warehouse space rose from $6.53 in 2017 to $7.79 in 2018-2019, signaling increased occupancy costs for owners. This might put pressure on profit margins, especially in high-demand areas.
- Declining Corporate Profits: Reported corporate profit percentages dropped from 8.83% in 2017 to 7.25% in 2018-2019. This could be a sign of tighter margins due to rising costs for space, staff, and other operational expenses.
- Regular Price Increases: The percentage of companies reporting regular warehousing price increases rose from 53.85% in 2017 to 64.29% in 2018-2019, with the average annual price increase climbing to 4%, up from 2.37% in 2017.
2018-2019 Survey Results
For our survey, we’ve segmented questions and answers into four categories:
- Performance Results: Tracks how warehouses measure their performance, like order accuracy and inventory loss, with a focus on what’s changed.
- Agreement Term Results: Looks at how flexible contracts are, how often prices go up, and the trend of setting minimum spend requirements.
- Warehousing Costs for 3PLs: Breaks down the costs for warehouse space, staff wages, management pay, and how profit margins are shifting.
- Warehousing Costs and Discounts for Customers: Covers pricing changes for services like pick-and-pack, storage, shipping deals, and new fees popping up.
2018-2019 Warehousing Performance Trends
| Performance Trends Questions | 2018-2019 | 2017 | Analysis |
|---|---|---|---|
| What percentage of warehouses measure their performance? | 82.93% | 87.18% | Notable decrease in reported warehouses measuring performance |
| What is the average number of orders per year overall? | N/A | N/A | N/A - (Started question in 2023) |
| What is the average order-picking accuracy? | 99.19% | 99.51% | Reported picking accuracy has remained consistent |
| What is the average inventory shrinkage? | 1.26% | 0.65% | Reported inventory shrinkage has increases significantly |
| What is the average number of picks per hour per staff member? | N/A | N/A | N/A - (Started question in 2023) |
| What percentage of customers do warehouses retain annually? | 99.52% | 97.82% | Reported customer retention has seen notable improvements |
2018-2019 Warehousing Agreement Term Trends
| Agreement Term Questions | 2018-2019 | 2017 | Analysis |
|---|---|---|---|
| Do you increase your pricing on a regular basis? | 64.29% of warehouses increase pricing on a regular basis | 53.85% of warehouses increase pricing on a regular basis | Significant increase in reported warehouses charging more |
| If you increase your pricing, what percentage do you use for the increase and how frequently do you increase pricing? | 4% average price increase annually | 2.37% average price increase annually | Notable increase in average price changes annually |
| What percentage of warehouses pay for shipping, picking, and inventory errors? | N/A | N/A | N/A - (Started question in 2023) |
| What percentage of warehouses have a monthly minimum requirement? | N/A | N/A | N/A - (Started question in 2022) |
| Minimum monthly spend requirement | N/A | N/A | N/A - (Started question in 2022) |
| What percentage of warehouses offer discounted pick and pack rates? | 74.29% | 74.36% | Reported consistency in warehouses offering discounted pick and pack rates |
| What terms do you offer with your agreements (month-to-month, annually, multi-year, no term, etc.)? | 56% offer month-to-month, 61% offer annual, 37% offer multi-year, 12% offer no-term | 56.41% offer month-to-month, 38.46% offer annual, 25.64% offer multi-year, 10.26% offer no-term | Annual and multi-year agreement terms have seen reported increases |
| What percentage of companies offer discounted storage rates? | 48.65% | 56.41% | Notable decreases in reported companies offering discounted storage |
| For warehouses with multiple locations, what percentage charged the same rates? | N/A | N/A | N/A - (Started question in 2020) |
| What percentage of companies include carton fees in their pick-and-pack charges? | N/A | N/A | N/A - (Started question in 2020) |
| What percentage of warehouses allow customers to use their freight rates? | 43.90% | 38.46% | Notable increase in reported warehouses allowing customers to use own rates |
| Do you have Commercial Plus pricing with USPS? | 41.46% | 30.77% | Notable increases in warehouses using Commercial Plus pricing |
2018-2019 Warehousing Costs for Customers
| Customer Cost Questions | 2018-2019 | 2017 | Analysis |
|---|---|---|---|
| What types of storage fees do warehouses charge? | $13.20 per pallet, $0.50 per cubic foot, $0.66 per square foot, $2.85 per bin | $13.02 per pallet, $0.54 per cubic foot, $0.88 per square foot, $2.14 per bin | Notable change in reported cost per square foot and cost per bin |
| Do you charge long-term storage fees, and if so, how much do you charge? | N/A | N/A | N/A - (Started question in 2023) |
| What percentage of companies charge an account management fee, and what is the average fee? | 56.41%, $226.54 monthly fee | N/A | N/A - (Started question in 2018-2019) |
| What percentage of warehouses charge setup fees, and what is the average setup fee? | 53%, $336 setup fee on average | N/A | N/A - (Started question in 2018-2019) |
| What is the average integration fee to connect with a shopping cart? | N/A | N/A | N/A - (Started question in 2020) |
| What is the average cost of receiving? | $7.00 per pallet, $31.95 per hour, $373.33 per container, $1.21 per carton | N/A | N/A - (Started question in 2018-2019) |
| What is the average B2C pick and pack price for a one-item order? | $2.86 | $2.64 | Reported B2C pick and pack pricing have increases marginally |
| What is the average B2B pick and pack price for a one-item order? | $4.17 | $3.74 | Reported B2B pick and pack pricing have increases notable |
| What are the average call center fees? | N/A | N/A | N/A - (Started question in 2020) |
| What is the average kitting fee? | N/A | N/A | N/A - (Started question in 2020) |
| What is the average cost for inserts added to orders? | N/A | N/A | N/A - (Started question in 2020) |
| How do you charge for shipping? | 41.46% cost plus, 31.72% offer discounts off published rates | 30.77% cost plus, 41.03% offer discounts off published rates | Notable increase in reported warehouses utilizing cost plus |
| What shipping discounts do warehouses offer for Ground, Express, International, and LTL services? | Ground: 20.02%, Express: 29%, International: NA LTL: 51.33% | Ground: 24%, Express: 31%, International: NA LTL: 44% | Notable decreases in reported warehouses offering ground discounts. Notable increases in warehouses offering LTL |
| What percentage of respondents charge returns fees, and what is the average price? | 84.62%, $3.53 per return | N/A | N/A - (Started question in 2018-2019) |
| How much do you charge for Amazon FBA orders and subscription box orders? | Additional $1 per order for FBA but N/A for subscription box | N/A | N/A - (Started question in 2018-2019) |
2018-2019 Warehousing Costs for Owners
| Ownership Cost Questions | 2018-2019 | 2017 | Analysis |
|---|---|---|---|
| What is the yearly cost per square foot of warehouse space? | $7.79 | $6.53 | Reported cost per square foot has increases by notable margins |
| What is the hourly rate of warehouse staff? | $13.32 | $11.44 | Reported hourly rates have increased respectfully for warehouse staff |
| What is the annual pay for warehouse management staff? | $50,524 | $47,478 | Notable increases in reported salaries for warehouse management staff |
| What percentage of total revenues is represented by occupancy costs? | N/A | N/A | N/A - (Started question in 2022) |
| What percentage of total revenues is represented by labor costs? | N/A | N/A | N/A - (Started question in 2022) |
| What is the average corporate profit percentage? | 7.25% | 8.83% | Reported decreases in corporate profit percentages year over year |
Warehouse Pricing Surveys: 2017 to 2024
- 2017 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2018-2019 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2020 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2021 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2022 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2023 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2024 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
