The 2021 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 2021 Survey Results Mean for Warehouse Customers:
- Price Increases in Fulfillment Costs: From 2020 to 2021, the cost for B2C pick and pack services rose from $2.96 to $3.13 per order, and the cost for B2B orders remained steady at $4.27. This suggests that customers using fulfillment services can expect a slight increase in their per-order costs, particularly for consumer orders.
- Long-Term Storage Fees Decrease: In 2021, only 49% of warehouses charged long-term storage fees, down from 62% in 2020. This is beneficial for customers storing goods for extended periods, as fewer warehouses are imposing these fees, potentially lowering overall storage costs.
- Increased Account Management Fees: The percentage of warehouses charging account management fees rose from 51% to 60%, with the average fee increasing from $130 to $160.10 per month. Customers should budget for this additional cost when planning warehousing services.
- Shipping Cost Structure Shifts: In 2021, 64% of warehouses used a cost-plus shipping model, up from 45% in 2020. This shift means that customers may see more transparency in shipping costs but also higher charges as the model tends to add a margin on top of shipping costs.
What The 2021 Survey Results Mean for Warehouse Owners
- Labor and Management Costs Rise: Wages for warehouse staff increased slightly from $13.47 to $14.00 per hour in 2021. Similarly, warehouse management salaries saw a modest rise from $52,765 to $55,854.92. Owners should account for higher payroll expenses in their financial planning.
- Profit Margins Improve: Corporate profit margins increased from 9.77% to 11% in 2021, reflecting a healthier financial outlook for warehouse owners. Despite rising costs, owners are finding ways to increase profitability, possibly by optimizing operations or adjusting warehousing pricing strategies.
- Increase in Pricing Flexibility: The percentage of warehouses offering month-to-month agreements decreased from 55% to 46% in 2021. This signals a trend toward longer-term contracts, which may offer more stability for owners but could limit flexibility in adjusting rates or services.
- Setup and Integration Costs Rise: Average setup fees for new customers remained stable, while integration fees for connecting with e-commerce platforms increased significantly from $156 to $447.14. Owners should prepare for higher upfront costs when onboarding new clients or integrating with digital systems.
2021 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.
2021 Warehousing Performance Trends
| Performance Trends Questions | 2021 | 2020 | Analysis |
|---|---|---|---|
| What percentage of warehouses measure their performance? | 86% | 93% | 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? | 99.21% | 99.31% | Reported order picking accuracy has remained consistent |
| What is the average inventory shrinkage? | 1.85% | 2.84% | Reported inventory shrinkage has decreased by a percentage point |
| 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? | 95.67% | 95% | Subtle increase in reported customer retention |
2021 Warehousing Agreement Term Trends
| Agreement Term Questions | 2021 | 2020 | Analysis |
|---|---|---|---|
| Do you increase your pricing on a regular basis? | 61% of warehouses increase pricing on a regular basis | 69% of warehouses increase pricing on a regular basis | Notable decrease in reported warehouses increasing prices |
| If you increase your pricing, what percentage do you use for the increase and how frequently do you increase pricing? | 5.59% average price increase annually | 3.3% average price increase annually | Notable increase in reported annual price increases |
| 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? | 72.00% | 69% | Small increase in the number of reported warehouses offering discounted rates |
| What terms do you offer with your agreements (month-to-month, annually, multi-year, no term, etc.)? | 46% offer month-to-month, 57% offer annual, 48% offer multi-year, 9% offer no-term | 55% offer month-to-month, 54% offer annual, 45% offer multi-year, 16% offer no-term | Month-to-month and multiple year agreements have seen reported decreases |
| What percentage of companies offer discounted storage rates? | 49% | 62% | Fewer reported warehouses offer discounted storage rates |
| For warehouses with multiple locations, what percentage charged the same rates? | 46% charge the same rates | 47% charge the same rates | Reporting warehousing cost by multiple locations has remained consistent year over year |
| What percentage of companies include carton fees in their pick-and-pack charges? | 38% | 83% | Significant decrease in reported companies including carton fees |
| What percentage of warehouses allow customers to use their freight rates? | 75% | 91% | Notable decreases in reported companies allowing customers to use own rates |
| Do you have Commercial Plus pricing with USPS? | 64% | 45% | Significant increase in reported companies using Commercial Plus pricing |
2021 Warehousing Costs for Customers
| Customer Cost Questions | 2021 | 2020 | Analysis |
|---|---|---|---|
| What types of storage fees do warehouses charge? | $14.79 per pallet, $0.45 per cubic foot, $0.75 per square foot, $4.07 per bin | $14.58 per pallet, $0.45 per cubic foot, $0.77 per square foot, $3.30 per bin | Notable increases in reported price 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? | 60%, $160.10 monthly fee | 51%, $130 monthly fee | Notable increase in reported warehouses charging account management fees with a corresponding monthly price increase |
| What percentage of warehouses charge setup fees, and what is the average setup fee? | 53%, $548.52 setup fee on average | 56%, $520 setup fee on average | Reported setup fees have remained consistent year over year |
| What is the average integration fee to connect with a shopping cart? | $447.14 per integration | $156 per integration | Significant increase in reported price per integration |
| What is the average cost of receiving? | $2.58 per SKU, $10.10 per pallet, $36.09 per hour, $441 per container, $2.91 per carton | $6.30 per SKU, $7.65 per pallet $35.30 per hour, $465 per container, $1.50 per carton | SKU and container receiving reported decreases, whereas pallet and carton receiving reported increases |
| What is the average B2C pick and pack price for a one-item order? | $3.13 | $2.96 | Notable increase in reported B2C pick and pack pricing |
| What is the average B2B pick and pack price for a one-item order? | $4.27 | $4.27 | Reported B2B pick and pack pricing has remained consistent |
| What are the average call center fees? | $.85 per minute | $1.05 per minute | Notable decrease in reported call center fees |
| What is the average kitting fee? | $35.47 per hour | $35.75 per hour | Reported kitting fees have remained consistent year over year |
| What is the average cost for inserts added to orders? | $0.15 per insert | $0.17 per insert | Minor reported change year over year |
| How do you charge for shipping? | 64% cost-plus, 37% offer discounts off published rates | 45% cost-plus, 32% offer discounts off published rates | Significant increase in reported warehouses utilizing cost-plus |
| What shipping discounts do warehouses offer for Ground, Express, International, and LTL services? | Ground: 19.28%, Express: 25.06%, International: 24.18%, LTL: 56.40% | Ground: 13%, Express: 20%, International: 11%, LTL: 57% | Reported year over year increases in shipping discounts with LTL being the exception |
| What percentage of respondents charge returns fees, and what is the average price? | 95%, $5.28 per return | 91%, $4.05 per return | Significant increase in reported cost per return |
| How much do you charge for Amazon FBA orders and subscription box orders? | $0.35 per label, $1.00-$5.00 per order | N/A | N/A - (Started question in 2021) |
2021 Warehousing Costs for Owners
| Ownership Cost Questions | 2023 | 2022 | Analysis |
|---|---|---|---|
| What is the yearly cost per square foot of warehouse space? | $7.91 | $7.81 | Reported cost per square foot have increased marginally year over year |
| What is the hourly rate of warehouse staff? | $14.00 | $13.47 | Small increase reported in hourly wages |
| What is the annual pay for warehouse management staff? | $55,854.92 | $52,765 | Modest increase reported in management staff salaries |
| 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? | 11% | 9.77% | Reported corporate profits have seen notable increases 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
