The 2017 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 2017 Survey Results Mean for Warehouse Customers:
- Stable Performance and Order Accuracy: With 99.51% order-picking accuracy and a retention rate of 97.82%, customers can expect reliable service from warehouses. This consistency in performance suggests fewer errors and better service overall, which is crucial for customers relying on third-party logistics to fulfill their orders smoothly.
- Cost of Warehousing Services: Warehouses charge $2.64 per order for B2C pick-and-pack services and $3.74 for B2B orders, giving customers clear visibility into the costs of fulfillment. Storage fees average $13.02 per pallet, with some warehouses offering discounted rates on pick-and-pack services (74.36% of warehouses provide discounts). These rates help customers plan and budget their logistics and storage needs more effectively.
- Shipping Discounts: Warehouses typically offer significant discounts on shipping, with 24% off Ground and 31% off Express rates. Customers can leverage these savings, especially for high-volume orders, helping them manage costs for shipping domestically or internationally.
- Month-to-Month Flexibility: Around 56.41% of warehouses offer month-to-month contracts, providing flexibility for customers who prefer not to be locked into long-term agreements. This can be particularly beneficial for businesses that experience seasonal changes or fluctuating demand.
What The 2017 Survey Results Mean for Warehouse Owners:
- Cost Management: The average cost per square foot of warehouse space is $6.53, while warehouse staff are paid an average hourly rate of $11.44. Managing these costs efficiently is crucial for maintaining profitability, as labor and space costs can significantly impact bottom lines.
- Profit Margins: Warehouse owners reported an average corporate profit percentage of 8.83%. To maintain or grow these margins, owners need to optimize their operations, keeping labor costs manageable and negotiating competitive rates for space and services.
- Pricing Increases and Flexibility: 53.85% of warehouses increase pricing regularly, with an average annual increase of 2.37%. Owners need to carefully balance these increases with customer expectations to avoid losing business. Offering flexible contract terms, like month-to-month agreements, can help maintain customer loyalty and reduce churn.
- Service Differentiation Through Discounts: Offering discounts, as done by 74.36% of warehouses for pick-and-pack services, can help warehouse owners attract and retain clients. Additionally, offering competitive shipping rates, with 41.03% of warehouses providing discounts off published shipping rates, can be a strong selling point to win more business.
2017 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.
2017 Warehousing Performance Trends
| Performance Trends Questions | 2017 |
|---|---|
| What percentage of warehouses measure their performance? | 87.18% |
| What is the average number of orders per year overall? | N/A - (Started question in 2023) |
| What is the average order-picking accuracy? | 99.51% |
| What is the average inventory shrinkage? | 0.65% |
| What is the average number of picks per hour per staff member? | N/A - (Started question in 2023) |
| What percentage of customers do warehouses retain annually? | 97.82% |
2017 Warehousing Agreement Term Trends
| Agreement Term Questions | 2017 |
|---|---|
| Do you increase your pricing on a regular basis? | 2.37% average price increase annually |
| 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 |
| What percentage of warehouses pay for shipping, picking, and inventory errors? | N/A - (Started question in 2023) |
| What percentage of warehouses have a monthly minimum requirement? | N/A - (Started question in 2023) |
| Minimum monthly spend requirement | N/A - (Started question in 2023) |
| What percentage of warehouses offer discounted pick and pack rates? | 74.36% |
| What terms do you offer with your agreements (month-to-month, annually, multi-year, no term, etc.)? | 56.41% offer month-to-month, 38.46% offer annual, 25.64% offer multi-year, 10.26% offer no-term |
| What percentage of companies offer discounted storage rates? | $56.41 |
| For warehouses with multiple locations, what percentage charged the same rates? | N/A - (Started question in 2020) |
| What percentage of companies include carton fees in their pick-and-pack charges? | N/A - (Started question in 2020) |
| What percentage of warehouses allow customers to use their freight rates? | 38.46% |
| Do you have Commercial Plus pricing with USPS? | 30.77% |
2017 Warehousing Costs for Customers
| Customer Cost Questions | 2017 |
|---|---|
| What types of storage fees do warehouses charge? | $13.02 per pallet, $0.54 per cubic foot, $0.88 per square foot, $2.14 per bin |
| Do you charge long-term storage fees, and if so, how much do you charge? | N/A (Started question in 2023) |
| What percentage of companies charge an account management fee, and what is the average fee? | N/A - (Started question in 2018-2019) |
| What percentage of warehouses charge setup fees, and what is the average setup fee? | N/A - (Started question in 2018-2019) |
| What is the average integration fee to connect with a shopping cart? | N/A - (Started question in 2020) |
| What is the average cost of receiving? | N/A - (Started question in 2018) |
| What is the average B2C pick and pack price for a one-item order? | $2.64 |
| What is the average B2B pick and pack price for a one-item order? | $3.74 |
| What are the average call center fees? | N/A - (Started question in 2020) |
| What is the average kitting fee? | N/A - (Started question in 2020) |
| What is the average cost for inserts added to orders? | N/A - (Started question in 2020) |
| How do you charge for shipping? | 30.77% cost plus, 41.03% offer discounts off published rates |
| What shipping discounts do warehouses offer for Ground, Express, International, and LTL services? | Ground: 24%, Express: 31%, International: NA LTL: 44% |
| What percentage of respondents charge returns fees, and what is the average price? | N/A - (Started question in 2018-2019) |
| How much do you charge for Amazon FBA orders and subscription box orders? | N/A - (Started question in 2020) |
2017 Warehousing Costs for Owners
| Ownership Cost Questions | 2017 |
|---|---|
| What is the yearly cost per square foot of warehouse space? | $6.53 |
| What is the hourly rate of warehouse staff? | $11.44 |
| What is the annual pay for warehouse management staff? | $47,478 |
| What percentage of total revenues is represented by occupancy costs? | N/A - (Started question in 2022) |
| What percentage of total revenues is represented by labor costs? | N/A - (Started question in 2022) |
| What is the average corporate profit percentage? | 8.83% |
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
