Key Takeaways: Warehouse & Pallet Storage Pricing
- Average pallet storage cost: The Fulfillment Advisor’s latest annual survey shows an average of $20.17 per pallet per month (typical range $18–$25) for standard dry storage.
- Other pricing methods: Typical averages are $0.46 per cubic foot/month, $3.08 per bin/month, and $1.73 per square foot/month—select the unit that best matches your inventory type.
- Monthly variation factors: Costs fluctuate based on pallet in/out fees, location, special storage conditions, insurance, cross-docking, bonded storage, trade show projects, FBA prep, term length, and volume—each of which can influence the final rate.
Understanding Warehouse and Pallet Storage Costs
Warehouse and pallet storage costs represent the recurring fees charged by third-party logistics (3PL) providers or warehouse operators for keeping your goods in storage. These costs are usually billed monthly and calculated using one or more units of measurements (pallets, bins, cubic feet, or square feet), depending on the product mix and facility layout.
At The Fulfillment Advisor, our annual survey of over 600 warehouses across North America provides the industry’s most comprehensive, research-backed data on warehouse pricing. These insights help businesses benchmark rates, identify savings opportunities, and negotiate better contracts with warehouse providers.
Average Pallet and Warehouse Storage Costs
As of 2025, the average cost to store a standard 40″×48″ pallet in a dry warehouse is $20.17 per month, based on The Fulfillment Advisor’s proprietary pricing study. The majority of respondents reported monthly rates between $18 and $25 per pallet.
| Storage Method | Average Monthly Cost | Typical Range | Measurement Type |
|---|---|---|---|
| Pallet | $20.17 | $18 – 25 | Per pallet/month |
| Cubic Foot | $0.46 | $0.35 – $0.60 | Per cubic foot/month |
| Bin | $3.08 | $2.50 – $4.00 | Per bin/month |
| Square Foot | $1.73 | $1.25 – $2.25 | Per sq. ft./month |
Pallet storage is, by far, the most frequently used warehouse storage methodology. Over the years, pallet storage fees have risen consistently.
| Year | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019-2018 | 2017 |
|---|---|---|---|---|---|---|---|---|
| Average Warehouse Storage Price Per Pallet Per Month | $20.17 | $20.37 | $18.30 | $16.21 | $14.79 | $14.58 | $13.20 | $13.02 |
Tip: If your inventory footprint changes frequently, use per-pallet or per-cubic-foot pricing. If your inventory is stable and long-term, negotiating per-square-foot rates may reduce costs.
Warehouse Pricing per Cubic Foot
Cubic-foot pricing is commonly used for smaller, lightweight, or high-SKU inventory where vertical space utilization matters more than pallet count. Instead of charging by pallet position or floor space, warehouses calculate storage based on the total cubic volume your inventory occupies.
Based on The Fulfillment Advisor’s 2025 pricing data, the average cost for warehouse storage priced by cubic footage is $0.46 per cubic foot per month, with a typical range of $0.35–$0.60, depending on ceiling height, rack configuration, and access frequency.
This pricing model is best suited for:
- Small or irregularly shaped items stored in shelving or flow racks
- E-commerce fulfillment operations with dense SKU profiles
- Businesses with fluctuating inventory levels that change weekly or monthly
When evaluating cubic-foot pricing, confirm how usable volume is measured. Some warehouses charge on actual occupied cubic footage, while others bill on allocated or rounded volume, which can materially affect monthly costs.
Warehouse Bin Storage Pricing
Bin storage pricing applies to warehouses that organize inventory into individual bins, totes, or shelf locations rather than full pallets. This method is most common in pick-and-pack environments, spare parts distribution, and e-commerce fulfillment operations with high order frequency and low unit size.
The Fulfillment Advisor’s latest survey shows an average bin storage cost of $3.08 per bin per month, with most warehouses reporting rates between $2.50 and $4.00, depending on bin size, pick velocity, and system automation.
Bin-based pricing is ideal for:
- High-SKU operations requiring frequent picking access
- Small, fast-moving products that do not justify pallet storage
- Operations where labor efficiency and order accuracy outweigh raw space cost
It’s important to note that bin storage often pairs with higher pick fees compared to pallet storage. When comparing bin pricing across warehouses, evaluate total fulfillment costs—not just storage—to ensure the model aligns with your order profile and margin structure.
Warehouse Pricing per Square Foot
Some warehouses—especially those serving larger or more consistent clients—price storage by square foot per month instead of by pallet. This approach is ideal for companies reserving a dedicated space or storing irregular, oversized, or unpalletized items.
According to The Fulfillment Advisor’s data, the average cost per square foot of warehouse storage is $1.73 per month, with a typical range of $1.25–$2.25 depending on location and amenities.
This model benefits:
- Steady or predictable inventory where a fixed footprint is efficient
- Non-palletized items or equipment requiring open floor space
- Hybrid models, where a company rents partial pallet storage alongside a reserved area
When comparing warehouse storage pricing per square foot, confirm whether handling, pallet moves, or access fees are included or charged separately.
Why Pallet Prices May Vary Each Month
Pallet storage pricing is not static. Multiple operational and contractual factors can cause fluctuations in your monthly charges. Below is a comprehensive list—mirroring The Fulfillment Advisor’s annual study results—of why pallet prices vary month to month:
- Pallet In / Pallet Out Fees: Most warehouses charge $4–$8 per pallet each way for inbound and outbound handling, in addition to monthly storage.
- Warehouse Location: Urban or port-adjacent areas typically cost more due to real estate and labor expenses. Rural markets may be cheaper but can increase transportation costs.
- Special Conditions: Climate-controlled or temperature-managed storage increases per-pallet costs due to higher utilities and maintenance.
- Insurance Costs: High-value or fragile goods require greater coverage, which adds to the base rate.
- Cross Docking: Eliminating long-term storage lowers monthly costs but adds labor for fast turnarounds.
- Bonded Pallet Storage (Imports): Customs-bonded warehouses charge more to meet compliance standards but can reduce tariff costs over time.
- Trade Show Pallet Storage: Temporary, high-turn storage during exhibitions or events often carries premium rates.
- FBA Prep & Overflow Storage:
- FBA Prep Pallets: Include additional handling, labeling, or bundling for Amazon compliance.
- Overflow Pallets: Temporarily stored to avoid Amazon long-term storage fees, then shipped as space opens in FBA centers.
- Commercial Storage: Standard dry storage for general goods; access frequency and rotation needs affect rates.
- Basic Warehouse Storage: Pallets stored without special requirements are priced most efficiently.
- Overflow in Shared Space: Shared warehouse environments offer flexibility but may have limited access or amenities.
- Short-Term Storage Premiums: Contracts shorter than 30 days can carry higher per-pallet pricing.
- Low Pallet Counts: Warehouses storing fewer than 30 pallets may apply higher rates to offset minimum revenue thresholds.
- Long-Term Storage Discounts: Multi-month or annual agreements—especially for 50+ pallets—often qualify for reduced rates.
- Bulk Pallet Discounts: About 42% of warehouses offer 5–10% price breaks for storing over 100 pallets monthly.
How to Calculate Your Warehouse Storage Costs
The simplest way to calculate your total monthly storage expense is:
Monthly Storage Cost = (Average Number of Pallets × Monthly Cost per Pallet)
In order to determine the number of pallet positions, use this simple formula based upon 40x40x48 inch standard pallet positions:
Number of Pallet Positions Needed = (Length of Carton x Width of Carton x Height of Carton x Total Number of Cartons) / 110,592
Example: If your business stores 120 pallets at $20.17 per pallet per month, your monthly storage cost is: 120 × $20.17 = $2,420.40 per month
How Long-Term Contracts and Volume Affect Pricing
Storage rates tend to improve with higher volume and longer commitments.
- Short-term (month-to-month): $22–$25 per pallet
- 6–12 months: $19–$22 per pallet
- 12+ months / 100+ pallets: Often $17–$20 per pallet
Warehouses value stability and guaranteed space utilization, rewarding it with lower pricing. Always ask about term-based discounts before signing.
Key Market Trends
- Pallet storage costs have stabilized at an average of $20.17 per pallet per month, following steady increases through 2023–2024.
- Cold storage demand continues to push up pricing in temperature-controlled facilities.
- Automation and space optimization are helping warehouses maintain competitive rates despite rising labor costs.
- Short-term contract premiums are increasing as space utilization stays high in urban markets.
Frequently asked questions
What’s the average pallet storage cost per month?
$20.17 per pallet per month, based on The Fulfillment Advisor’s 2025 warehouse pricing survey.
How much does warehouse space cost per square foot?
An average of $1.73 per square foot per month, with typical rates from $1.25–$2.25, depending on region and services.
What is the most cost-effective pricing model?
Long-term pallet-based contracts with consistent volume typically yield the lowest rates.
Do rates include handling or insurance?
Usually not—most warehouses bill separately for receiving, retrieval, or insurance coverage.
How can I reduce warehouse storage costs?
Consolidate shipments, increase inventory turns, and negotiate longer terms or volume discounts.
