The 2023 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. This information helps you understand market shifts with most participants from the US (86%) and a smaller portion from Canada (14%), reflecting insights from both markets.
All Survey Findings from 2017-2024:
What the 2023 Survey Results Mean for Warehouse Customers:
- Rising Storage Costs: The cost for storage services increased in 2023 compared to 2022. For example, the price per pallet went up from $16.21 to $18.30, and the cost per cubic foot rose from $0.50 to $0.55. This indicates that customers should expect to pay more for storing goods.
- Changes in Discounts: The percentage of warehouses offering discounted pick-and-pack services slightly increased from 64.29% in 2022 to 65% in 2023. Similarly, discounts for storage services saw a larger rise, from 38.71% to 47%, offering more opportunities for cost savings.
- Service Fees Vary: The average setup fee increased slightly from $368 in 2022 to $377 in 2023. Account management fees saw more substantial changes, with fewer companies charging these fees (28% in 2023 versus 51% in 2022), but the average fee increased from $198.93 to $261.80.
- Shipping Discounts Are Declining: There was a notable decrease in shipping discounts for ground, express, international, and LTL services, with rates dropping across all categories. For instance, the ground shipping discount went from 21.82% to 15.58%.
What The 2023 Warehouse Costs Survey Results Mean for Warehouse Owners:
- Higher Labor and Space Costs: The cost per square foot for warehouse space increased slightly from $7.96 in 2022 to $8.22 in 2023. Additionally, the average hourly wage for warehouse staff rose from $14.97 to $15.78.
- Slight Decline in Occupancy and Labor Costs: The percentage of revenue spent on labor costs decreased from 33.09% in 2022 to 31.70% in 2023. Similarly, occupancy costs as a percentage of revenue also decreased slightly from 25.22% to 24.90%.
- Stable Profit Margins: Corporate profit margins remained consistent, with a slight change from 10.58% in 2022 to 10.49% in 2023.
- Contract Trends: More warehouses are offering flexible agreements, with month-to-month terms increasing from 50% in 2022 to 56% in 2023, while annual agreements also increased from 43.9% to 61%.
2023 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.
2023 Warehousing Performance Trends
| Performance Trends Questions | 2023 | 2022 | Analysis |
|---|---|---|---|
| What percentage of warehouses measure their performance? | 89% | 73.44% | Significant increase in reported warehouses measuring performance |
| What is the average number of orders per year overall? | 931,000 orders per year | N/A | N/A - (Started question in 2023) |
| What is the average order-picking accuracy? | 99.19% | 99.36% | Minor decrease in reported order-picking accuracy |
| What is the average inventory shrinkage? | 1.38% | 1.37% | Reported inventory shrinkage has remained consistent |
| What is the average number of picks per hour per staff member? | 71.42 picks per hour | N/A | N/A - (Started question in 2023) |
| What percentage of customers do warehouses retain annually? | 91.72% | 94.54% | Slight decline in reported retention rates |
2023 Warehousing Agreement Term Trends
| Agreement Term Questions | 2023 | 2022 | Analysis |
|---|---|---|---|
| Do you increase your pricing on a regular basis? | 72% of providers regularly increase prices | 80% of warehouses increase pricing on a regular basis | Reported decrease in warehouses increasing pricing |
| If you increase your pricing, what percentage do you use for the increase and how frequently do you increase pricing? | 4.54% average price increase annually, 23% of providers raise prices biennially | 3.9% average price increase annually, 37.1% of providers raise prices biennially | Reported increase in average price increase, and a reported decrease in providers who raise prices biennially |
| What percentage of warehouses pay for shipping, picking, and inventory errors? | 89.00% | N/A | N/A - (Started question in 2023) |
| What percentage of warehouses have a monthly minimum requirement? | 48.00% | 50.00% | Slight decrease in reported monthly minimums |
| Minimum monthly spend requirement | $195 | $740.79 | Significant decrease in reported monthly spend |
| What percentage of warehouses offer discounted pick and pack rates? | 65.00% | 64.29% | Subtle increase in reported warehouses offering discounted pick and pack rates |
| What terms do you offer with your agreements (month-to-month, annually, multi-year, no term, etc.)? | 50% offer month-to-month, 61% offer annual, 26% offer multi-year, 16% offer no-term | 56% offer month-to-month, 43.9% offer annual, 26% offer multi-year, 34.85% offer no-term | Reported increase in warehouses offering month-to-month, annual and multi-year |
| What percentage of companies offer discounted storage rates? | 47% | 38.71% | Significant increase in reported companies offering discounted storage rates |
| For warehouses with multiple locations, what percentage charged the same rates? | 58% charge the same rates | 60% charge the same rates | Reported consistent pricing across locations year over year |
| What percentage of companies include carton fees in their pick-and-pack charges? | 29% | 30% | Reported companies charging fees has remained consistent year over year |
| What percentage of warehouses allow customers to use their freight rates? | 83% allow customers to use their own rates | 90.63% allow customers to use their own rates | Notable reduction in reported companies allowing customers to use their own rates |
| Do you have Commercial Plus pricing with USPS? | 65% | 68% | Small reduction in reported companies using Commercial Plus pricing |
2023 Warehousing Costs for Customers
| Customer Cost Questions | 2023 | 2022 | Analysis |
|---|---|---|---|
| What types of storage fees do warehouses charge? | $18.30 per pallet, $0.55 per cubic foot, $1.15 per square foot, $3.20 per bin | $16.21 per pallet, $0.50 per cubic foot, $0.91 per square foot, $3.18 per bin | Reported increases across all major categories |
| Do you charge long-term storage fees, and if so, how much do you charge? | 58% of companies charged, surcharge averaged 50% | N/A | N/A - (Started question in 2023) |
| What percentage of companies charge an account management fee, and what is the average fee? | 28%, $261.80 monthly fee | 51%, $198.93 monthly fee | Significant decrease in reported companies charging account management fees, but an increase for those that do |
| What percentage of warehouses charge setup fees, and what is the average setup fee? | 56%, $377 setup fee on average | 51%, $368 setup fee on average | Notable increases in reported companies charging setup fees |
| What is the average integration fee to connect with a shopping cart? | $231 per integration | $274 per integration | Notable decrease in reported integration cost |
| What is the average cost of receiving? | $2.50 per SKU, $8.69 per pallet, $38.92 per hour, $398.75 per container, $3.00 per carton | $2.50 per SKU, $7.37 per pallet, $39.53 per hour, $396.88 per container, $2.46 per carton | Reported consistency in average receiving fees |
| What is the average B2C pick and pack price for a one-item order? | $2.97 | $3.13 | Slight decrease in reported B2C pick and pack pricing |
| What is the average B2B pick and pack price for a one-item order? | $4.31 | $4.33 | Very slight decrease in reported B2B pick and pack pricing |
| What are the average call center fees? | $1.28 per minute | $1.43 per minute | Notable decrease in reported call center fees |
| What is the average kitting fee? | $39 per hour | $39.60 per hour | Reported consistency in average kitting fees |
| What is the average cost for inserts added to orders? | $0.18 per insert | $0.23 | Notable decrease for reported insert fees |
| How do you charge for shipping? | 65% cost-plus, 35% offer discounts off published rates | 63.49% cost-plus, 19.7% offer discounts off published rates | Significant increase in reported warehouses providing discounted rates |
| What shipping discounts do warehouses offer for Ground, Express, International, and LTL services? | Ground: 15.58%, Express: 19.23%, International: 22.46%, LTL: 22.46% | Ground: 21.82%, Express: 26.4%, International: 24.71%, LTL: 57.30% | Ground, Express, International and LTL have all seen reported decreases |
| What percentage of respondents charge returns fees, and what is the average price? | 88%, $3.60 per return | 89%, $3.62 per return | Consistency across reported return fees |
| How much do you charge for Amazon FBA orders and subscription box orders? | $0.58 per label, $1.00-$2.50 per order | $0.56 per label, $1.50-$3.00 per order | Notable decrease in reported fees per order for subscription box orders |
2023 Warehousing Costs for Owners
| Ownership Cost Questions | 2023 | 2022 | Analysis |
|---|---|---|---|
| What is the yearly cost per square foot of warehouse space? | $8.22 | $7.96 | Reported cost per square foot have increased marginally year over year |
| What is the hourly rate of warehouse staff? | $15.78 | $14.97 | Reported hourly wages have increased slightly year over year |
| What is the annual pay for warehouse management staff? | $55,057 | $52,897 | Reported management salaries have increased slightly year over year |
| What percentage of total revenues is represented by occupancy costs? | 24.90% | 25.22% | Minor reduction in reported occupancy cost |
| What percentage of total revenues is represented by labor costs? | 31.70% | 33.09% | Minor reduction in reported labor costs |
| What is the average corporate profit percentage? | 10.49% | 10.58% | Reported corporate profit margins have remained consistent 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
