The 2020 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 2020 Survey Results Mean for Warehouse Customers:
- Increased Costs for Storage and Returns: Customers will notice a rise in storage costs, with pallet fees increasing from $13.20 to $14.58 and bin storage rising from $2.85 to $3.30 between 2018-2020. Additionally, return fees have jumped from $3.53 to $4.05 per return. These increases may impact overall fulfillment costs, particularly for businesses handling large volumes of stock or frequent returns.
- Discounts and Setup Fees: Fewer warehouses are offering discounts, with the percentage of those providing discounted pick-and-pack rates dropping from 74.29% to 69%. However, the cost of setting up services has risen sharply, with setup fees increasing from an average of $336 to $520. Customers may need to budget more for onboarding and fewer discount opportunities.
- Stable Shipping Fees but Rising Return Charges: While shipping discounts and methods have remained relatively stable, return fees have increased significantly. This could affect customers managing high return volumes, making it important to re-evaluate return policies and procedures to control costs.
- Price Changes for Shipping Methods: Notable reductions in Ground and Express shipping discounts, coupled with an increase in LTL (Less-than-Truckload) shipping savings (from 51.33% to 57%), suggest that
What The 2020 Survey Results Mean for Warehouse Owners:
- Profit Margins Are Growing: Corporate profits have seen a significant rise, moving from 7.25% to 9.77% between 2018-2020. This suggests that despite rising labor and management costs, many warehouses are finding ways to increase profitability, likely through higher service fees and more efficient operations.
- Management Salaries Have Increased: The salary for warehouse management staff has risen from $50,524 to $52,765. Owners may need to consider these increasing payroll expenses in their overall cost structure but could also view it as a sign of investing in quality leadership.
- Stable Labor and Space Costs: Hourly wages for warehouse staff have remained mostly consistent at around $13.47, while the cost per square foot of warehouse space has seen negligible change, increasing from $7.79 to $7.81. This stability helps owners better predict fixed costs, which could help maintain operational predictability amidst other fluctuating expenses.
- Fewer Discounts Offered to Customers: The decline in the number of warehouses offering pick-and-pack discounts (from 74.29% to 69%) indicates that owners are becoming more conservative with their warehousing pricing, likely in response to increased labor and setup costs.
2020 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.
2020 Warehousing Performance Trends
| Performance Trends Questions | 2020 | 2018-2019 | Analysis |
|---|---|---|---|
| What percentage of warehouses measure their performance? | 93% | 82.93% | Significant increase in reported performance tracking |
| 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? | 99.31% | 99.19% | Slight improvement in reported picking accuracy |
| What is the average inventory shrinkage? | 2.84% | 1.26% | Notable increase in reported shrinkage rates |
| 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? | 95% | 99.52% | Slight drop in reported customer retention |
2020 Warehousing Agreement Term Trends
| Agreement Term Questions | 2020 | 2018-2019 | Analysis |
|---|---|---|---|
| Do you increase your pricing on a regular basis? | 69% of warehouses increase pricing on a regular basis | 64.29% of warehouses increase pricing on a regular basis | Notable increase in reported warehouses charging more on a recurring basis |
| If you increase your pricing, what percentage do you use for the increase and how frequently do you increase pricing? | 3.3% average price increase annually | 4% average price increase annually | Slight observed price decrease across reported warehouses 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? | 69% | 74.29% | Fewer reported warehouses are offering discounts |
| What terms do you offer with your agreements (month-to-month, annually, multi-year, no term, etc.)? | 55% offer month-to-month, 54% offer annual, 45% offer multi-year, 16% offer no-term | 56% offer month-to-month, 61% offer annual, 37% offer multi-year, 12% offer no-term | Reported agreement terms have remained consistent with subtle fluctuations year over year |
| What percentage of companies offer discounted storage rates? | 62% | 48.65% | More reported warehouses are offering storage discounts |
| For warehouses with multiple locations, what percentage charged the same rates? | 47% charge the same rates | N/A | N/A - (Started question in 2020) |
| What percentage of companies include carton fees in their pick-and-pack charges? | 83% | N/A | N/A - (Started question in 2020) |
| What percentage of warehouses allow customers to use their freight rates? | 91% | 43.90% | Significant increase in reported warehouses allowing customers to use their own rates |
| Do you have Commercial Plus pricing with USPS? | 45% | 41.46% | Notable increase in reported warehouses using Commercial Plus pricing |
2020 Warehousing Costs for Customers
| Customer Cost Questions | 2020 | 2018-2019 | Analysis |
|---|---|---|---|
| What types of storage fees do warehouses charge? | $14.58 per pallet, $0.45 per cubic foot, $0.77 per square foot, $3.30 per bin | $13.20 per pallet, $0.50 per cubic foot, $0.66 per square foot, $2.85 per bin | Notable increases in reported price per pallet and price ber 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? | 51%, $130 monthly fee | 56.41%, $226.54 monthly fee | Significant decrease in reported account management fees year over year |
| What percentage of warehouses charge setup fees, and what is the average setup fee? | 56%, $520 setup fee on average | 53%, $336 setup fee on average | Significant increase in reported setup fees year over year |
| What is the average integration fee to connect with a shopping cart? | $156 per integration | N/A | N/A - (Started question in 2020) |
| What is the average cost of receiving? | $6.30 per SKU, $7.65 per pallet $35.30 per hour, $465 per container, $1.50 per carton | $7.00 per pallet, $31.95 per hour, $373.33 per container, $1.21 per carton | Reported slight increase in receiving costs across the board |
| What is the average B2C pick and pack price for a one-item order? | $2.96 | $2.86 | Reported B2C pick and pack pricing has remained consistent |
| What is the average B2B pick and pack price for a one-item order? | $4.27 | $4.17 | Reported B2B pick and pack pricing has remained consistent |
| What are the average call center fees? | $1.05 per minute | N/A | N/A - (Started question in 2020) |
| What is the average kitting fee? | $35.75 per hour | N/A | N/A - (Started question in 2020) |
| What is the average cost for inserts added to orders? | $0.17 per insert | N/A | N/A - (Started question in 2020) |
| How do you charge for shipping? | 45% cost-plus, 32% offer discounts off published rates | 41.46% cost plus, 31.72% offer discounts off published rates | Shipping methods have remained consistent year over year |
| What shipping discounts do warehouses offer for Ground, Express, International, and LTL services? | Ground: 13%, Express: 20%, International: 11%, LTL: 57% | Ground: 20.02%, Express: 29%, International: NA LTL: 51.33% | Ground and Express have seen reported decreases, LTL has seen notable increases |
| What percentage of respondents charge returns fees, and what is the average price? | 91%, $4.05 per return | 84.62%, $3.53 per return | Notable increase in reported price per return |
| How much do you charge for Amazon FBA orders and subscription box orders? | $.2-.5 per label FBA, subscription box requires time study and individual quote | Additional $1 per order for FBA orders; didn’t ask subscription box question | Increases in costs year over year |
2020 Warehousing Costs for Owners
| Ownership Cost Questions | 2020 | 2018-2019 | Analysis |
|---|---|---|---|
| What is the yearly cost per square foot of warehouse space? | $7.81 | $7.79 | Reported cost per square foot has remained consistent year over year |
| What is the hourly rate of warehouse staff? | $13.47 | $13.32 | Reported hourly rates have remained consistent year over year |
| What is the annual pay for warehouse management staff? | $52,765 | $50,524 | Notable reported salary increase for 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? | 9.77% | 7.25% | Very notable increase in reported corporate profit percentages |
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
