The questions we hear most often from customers are, “How much does outsourced warehousing cost?” and “What factors influence warehouse pricing?” While the answer can be complex, in 2017, we began gathering data from our network of top fulfillment warehousing companies to help business owners and warehouse operators better understand average warehousing pricing and costs. This page represents the culmination of years of effort. It includes historical survey results from our annual warehousing costs and warehousing pricing surveys, featuring data from warehouses across the US and Canada.
Average Warehousing Pricing: For Businesses Using Warehouses & 3PL Tenants
When outsourcing, your business will incur a monthly fee for warehouse space utilized during that month. This fee will take the form of one of the following: a pallet fee, a cubic footage fee, a square footage fee, or a bin fee. Each of these fees are explained in detail on our Warehouse Storage and Pallet Storage page. The main benefit of this warehouse pricing model is that it is variable – you only pay for what you use during the month, as opposed to leasing a warehouse space, or purchasing and building a warehouse, where you will pay a fixed cost each month whether you use the entire space or not. Outsourced warehousing companies also charge a fee for every service they perform for you (e.g. receiving products, picking and packing orders, and shipping), as detailed in the tables below.
Latest Update Q3 2025 Results - Warehousing and Fulfillment Pricing and Costs Survey
The following is the latest quarterly update of some of the key warehousing and fulfillment pricing and costs, broken down by region and country (within the US and Canada). These quarterly updates serve as checkpoints between our more exhaustive annual updates.
| Question | Pacific Northwest US | Southwest US | Midwest US | Central US | Southeast US | Northwest US | Total US | BC Canada | Ontario Canada | Total Canada |
|---|---|---|---|---|---|---|---|---|---|---|
| How much do you charge for receiving a 40 foot container? | $385.00 | $625.00 | $650.00 | $525.00 | $770.00 | $583.33 | $604.44 | $650.00 | $550.00 | $570 |
| How much do you charge for receiving per hour? | $33.50 | $46.50 | $36.88 | $39.17 | $40.42 | $41.67 | $39.88 | $40.00 | $46.25 | $45 |
| How much do you charge for receiving per pallet? | $9.50 | $9.00 | $9.09 | $10.67 | $12.50 | $16.67 | $11.21 | $15.00 | $15.25 | $15.20 |
| How much do you charge for storage per pallet? | $18.50 | $22.17 | $14.20 | $19.67 | $20.00 | $23.33 | $19.41 | $35.00 | $23.25 | $25.60 |
| How much do you charge for storage per cubic foot? | $0.25 | $0.43 | $0.73 | $0.37 | $0.52 | $0.50 | $0.49 | $0.25 | $0.60 | $0.53 |
| How much do you charge for storage per bin? | $1.50 | $4.50 | $3.30 | $3.18 | $3.17 | $4.83 | $3.51 | $5.00 | $2.56 | $3.05 |
| How much do you charge for picking and packing a single item order? | $1.25 | $3.42 | $3.04 | $2.08 | $2.40 | $2.00 | $2.46 | $2.00 | $2.44 | $2.35 |
| How many picks are included in this processing fee? | 1.5 | 1 | 1 | 1.67 | 1 | 1 | 1.17 | 1 | 1 | 1 |
| What is the charge for additional picks? | $0.63 | $0.54 | $0.45 | $0.43 | $0.45 | $0.42 | $0.48 | $0.50 | $0.56 | $0.55 |
| What do you charge for full case picks? | $2.25 | $2.11 | $3.06 | $2.17 | $1.32 | $3.33 | $2.42 | $2.50 | $2.63 | $2.60 |
| What discount do you offer customers for ground shipping? | 7.50% | 16.67% | 11.25% | 27.33% | 21.67% | 18.33% | 17.33% | 15.75% | 23.75% | 36% |
| What markup over cost do you offer customers for ground shipping? | 9.00% | 20.67% | 11.25% | 14.00% | 13.33% | 8.33% | 12.89% | 5.00% | 20.00% | 17% |
| What do you charge for processing a single item return? | $3.80 | $4.67 | $4.04 | $1.92 | $3.83 | $2.67 | $3.34 | $3.00 | $4.13 | $3.90 |
| How much do you pay an average warehouse hourly staff member per hour? | $21.00 | $19.83 | $18.75 | $15.00 | $26.00 | $19.67 | $19.92 | $19.00 | $18.75 | $18.80 |
| How much do you pay an average warehouse manger per year? | $66,500.00 | $66,666.67 | $56,110.00 | $63,333.33 | $74,333.33 | $50,000.00 | $62,246.67 | $70,000.00 | $58,730.00 | $60,984.00 |
Annual 2025 Results – Warehousing and Fulfillment Pricing and Costs Survey
And for more detailed results, below are the results of our last annual survey, exploring every potential warehousing price and cost.
| Question | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019-2018 | 2017 |
|---|---|---|---|---|---|---|---|---|
| Average Warehouse Storage Price Per Pallet Per Month | Pallet: $20.17 | Pallet: $20.37 | Pallet: $18.30 | Pallet: $16.21 | Pallet: $14.79 | Pallet: $14.58 | Pallet: $13.20 | Pallet: $13.02 |
| Average Pallet Storage Fee Per Cubic Foot Per Month | Cubic Ft.: $.46 | Cubic Ft.: $0.55 | Cubic Ft.: $0.55 | Cubic Ft.: $0.50 | Cubic Ft.: $0.45 | Cubic Ft.: $0.45 | Cubic Ft.: $0.50 | Cubic Ft.: $0.54 |
| Average Pallet Storage Fee Per Square Foot Per Month | Sq. Ft.: $1.73 | Sq. Ft.: $1.22 | Sq. Ft.: $1.15 | Sq. Ft.: $0.91 | Sq. Ft.: $0.75 | Sq. Ft.: $0.77 | Sq. Ft.: $0.66 | Sq. Ft.: $0.88 |
| Average Pallet Storage Fee Per Bin Per Month | Bin: $3.08 | Bin: $2.67 | Bin: $3.20 | Bin: $3.18 | Bin: $4.07 | Bin: $3.30 | Bin: $2.85 | Bin: $2.14 |
| (TERMS). Avg. annual price increase percentage | 3.57% avg. price increase annually | 4.23% avg. price increase annually | 4.54% avg. price increase annually | 3.90% avg. price increase annually | 5.59% avg. price increase annually | 3.30% avg. price increase annually | 4.00% avg. price increase annually | 2.37% avg. price increase annually |
| Percentage of warehouses charging account management fees | 35% | 33.33% | 28.00% | 51.00% | 60.00% | 51.00% | 56.41% | N/A |
| Average cost of account management fees | Acct. Mgmt.: $102.88 | Acct. Mgmt.: $236.67 | Acct. Mgmt.: $261.80 | Acct. Mgmt.: $198.93 | Acct. Mgmt.: $160.10 | Acct. Mgmt.: $130.00 | Acct. Mgmt.: $226.54 | N/A |
| Percentage of warehouses charging setup fees | 51% | 54% | 56% | 51% | 53% | 56% | 53% | N/A |
| Average cost of receiving | $2.75 per SKU, $10.52 per pallet, $45.67 per hour, $500 per container, $2.50-3.00 per carton | $2.50 per SKU, $12.91 per pallet, $40.79 per hour, $350 per container, $2.50-3.00 per carton | $2.50 per SKU, $8.69 per pallet, $38.92 per hour, $3.98.75 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 | $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 | $7.00 per pallet, $31.95 per hour, $373.33 per container, $1.21 per carton | N/A |
| Average cost of setup fees | Setup: $425.00 | Setup: $385.00 | Setup: $377.00 | Setup: $368.00 | Setup: $548.52 | Setup: $520.00 | Setup: $336.00 | N/A |
| Average integration fee to connect with a shopping cart | Integr.: $275.00 | Integr.: $268.00 | Integr.: $231.00 | Integr.: $274.00 | Integr.: $447.14 | Integr.: $156.00 | N/A | N/A |
| Average 3PL Pick & Pack Price Per 1 Item B2C Order | B2C: $3.25 | B2C: $3.18 | B2C: $2.97 | B2C: $3.13 | B2C: $3.13 | B2C: $2.96 | B2C: $2.86 | B2C: $2.64 |
| Average 3PL Pick & Pack Price Per 1 Item B2B Order | B2B: $4.85 | B2B: $4.79 | B2B: $4.31 | B2B: $4.33 | B2B: $4.27 | B2B: $4.27 | B2B: $4.17 | B2B: $3.74 |
| Average call center fees per minute | $1.29 per minute | $1.19 per minute | $1.28 per minute | $1.43 per minute | $.85 per minute | $1.05 per minute | N/A | N/A |
| Average kitting fee per hour | $43 per hour | $39 per hour | $39 per hour | $39.60 per hour | $35.47 per hour | $35.75 per hour | N/A | N/A |
| Average cost for inserts added to orders | $0.17 per insert | $0.25 per insert | $0.18 per insert | $0.23 per insert | $0.15 per insert | $0.17 per insert | N/A | N/A |
| How do you charge for shipping? | 62% markup over cost and 25% offer discounts off published rates | 65% markup over cost and 35% offer discounts off published rates | 65% markup over cost and 29% offer discounts off published rates | 63.49% markup over cost and 19.7% offer discounts off published rates | 64% markup over cost and 37% offer discounts off published rates | 45% markup over cost and 32% offer discounts off published rates | 41.46% markup over cost and 31.72% offer discounts off published rates | 30.77% markup over cost and 41.03% offer discounts off published rates |
| Avg. shipping markup over cost | 62.00% | 65.00% | 65.00% | 63.49% | 64.00% | 45.00% | 41.46% | 30.77% |
| Avg. shipping discount off of published rates | 25.00% | 35.00% | 35.00% | 19.70% | 37.00% | 32.00% | 31.72% | 41.03% |
| Avg. ground shipping discounts from warehouses | Ground: 16.2% markup over cost | Ground: 19.90% | Ground: 15.58% | Ground: 21.82% | Ground: 19.28% | Ground: 13.00% | Ground: 20.02% | Ground: 24.00% |
| Avg. express shipping discounts from warehouses | Express: 14.6% markup over cost | Express: 23.04% | Express: 19.23% | Express: 26.40% | Express: 25.06% | Express: 20.00% | Express: 29.00% | Express: 31.00% |
| Avg. international shipping discounts from warehouses | Intl.: 15.70% markup over cost | Intl.: 21.70% | Intl.: 22.46% | Intl.: 24.71% | Intl.: 24.18% | Intl.: 11.00% | N/A | N/A |
| Avg. LTL shipping discounts from warehouses | LTL: 16.00% markup over cost | LTL: 22.92% | LTL: 22.46% | LTL: 57.30% | LTL: 56.40% | LTL: 57.00% | LTL: 51.33% | LTL: 44.00% |
| Percentage of warehouses charging return fees | 92.00% | 79.33% | 88.00% | 89.00% | 95.00% | 91.00% | 84.62% | N/A |
| Average cost of return fees | $4.06 per return | $3.95 per return | $3.60 per return | $3.62 per return | $5.28 per return | $4.05 per return | $3.53 per return | N/A |
| Fulfillment by Amazon (FBA) avg. cost per label | $0.37 per label | $0.45 per label | $0.58 per label | $0.56 per label | $0.35 per label | $0.20-$0.50 per label | N/A | N/A |
| Fulfillment by Amazon (FBA) avg. cost per order | $2.50-$3.00 per order | $2.50-$3.20 per order | $1.00-$2.50 per order | $1.50-$3.00 per order | $1.00-$5.00 per order | $1.00-$5.00 per order | $1.00 per order | N/A |
| Percentage of warehouses charging long term storage fees | 48.60% | 23.33% | 58% | N/A | N/A | N/A | N/A | N/A |
| Average cost of long term storage fees | 30% to 50% on top of normal fee (if fee is $100, than surcharge would be between $130 - $150) | 50% to 100% on top of normal fee (if fee is $100, than surcharge would be between $150 - $200) | 50% on top of normal fee (if fee is $100, than surcharge would be $150) | N/A | N/A | N/A | N/A | N/A |
Average Warehousing Costs: For Warehouse Owners
Warehouse owners incur recurring monthly expenses tied to servicing their customers. The most significant fo these fees include rent and labor, as detailed in the table below.
| Question | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019-2018 | 2017 |
|---|---|---|---|---|---|---|---|---|
| Cost Per Square Foot of Warehouse Space | $9.47 | $8.31 | $8.22 | $7.96 | $7.91 | $7.81 | $7.79 | $6.53 |
| Cost of Warehouse Staff Per Hour | $17.14 | $16.95 | $15.78 | $14.97 | $14.00 | $13.47 | $13.32 | $11.44 |
| Cost of Warehouse Management Staff Per Year | $53,102.00 | $57,352.00 | $55,057.00 | $52,897.00 | $55,854.00 | $52,765.00 | $50,524.00 | $47,478.00 |
| What percentage of total revenues is represented by occupancy costs? | 29.86% | 31.68% | 24.90% | 25.22% | N/A | N/A | N/A | N/A |
| What percentage of total revenues is represented by labor costs? | 29.99% | 28.59% | 31.70% | 33.09% | N/A | N/A | N/A | N/A |
| Corporate Profit % For Warehouses | 9% | 9.37% | 10.49% | 10.58% | 11.00% | 9.77% | 7.25% | 8.83% |
Summary Information and Links to Each of The Fulfillment Advisor's Warehousing Services Costs and Pricing Surveys
Starting in the most recent year (2025) and working back to the first time that we completed the survey (2017). Each year, we survey all the warehouses in our network, asking key questions about their performance metrics, agreements and terms, warehousing costs, and warehouse pricing for customers.
As you will see, using an outsourced warehouse is by far the most cost-effective way to lower your warehouse costs – outsourced warehousing offers the most flexible pricing terms for small and large businesses alike. Below are jump links to each of our previous surveys with a year over year analysis for each.
Annual Surveys (2017-2024):
- 2025 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2024 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2023 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2022 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2021 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2020 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2018-2019 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
- 2017 Warehousing Pricing, Warehousing Costs, Rates and Fees Result
What The 2025 Warehouse Pricing Survey Results Mean for Warehouse Customers:
- Minimum Monthly Spend Requirements Have Increased: The minimum monthly spend requirement rose from $337.50 in 2024 to $517 in 2025. Businesses with lower order volumes may need to evaluate whether their current warehouse arrangements remain cost-effective.
- More Warehouses Are Charging Long-Term Storage Fees: 48.6% of warehouses now charge long-term storage fees, up from 23.33% in 2024. Reported fees range from $5-$10 per pallet per month.
- Storage Costs Have Changed: The reported cost per cubic foot of storage decreased from $0.55 to $0.46. Bin storage costs increased from $2.67 to $3.08, and square-foot storage costs rose from $1.22 to $1.73.
- Fulfillment Costs Show Mixed Trends: Receiving costs per pallet decreased from $12.91 to $10.52, while per-container receiving costs increased from $350 to $500. B2C pick and pack rates changed slightly, from $3.18 to $3.20, and B2B rates from $4.79 to $4.80.
- More Warehouses Allow the Use of Customer Freight Accounts: 96% of warehouses now allow customers to use their own freight accounts, an increase from 83% in 2024.
- Return Fees Are More Common and Slightly Higher: 92% of warehouses now charge for returns, up from 79.33% in 2024. The average return fee rose from $3.95 to $4.06.
What The 2025 Warehouse Costs Survey Results Mean for Warehouse Owners:
- Reported Inventory Shrinkage Has Increased: The reported inventory shrinkage rate rose from 1.24% in 2024 to 2.68% in 2025.
- More Warehouses Report Covering Costs for Errors: 94.33% of warehouses now cover shipping, picking, and inventory errors when at fault, compared to 85% in 2024.
- Reported Labor Productivity Has Increased: The reported number of picks per hour per staff member rose from 64.23 to 102.33.
- Customer Retention Rates Have Increased: Reported annual customer retention increased from 94.2% in 2024 to 96.49% in 2025.
- More Warehouses Report Regular Price Increases: 77% of warehouses reported increasing prices regularly, compared to 71.7% in 2024. The reported average annual price increase decreased from 4.23% to 3.57%.
- Fewer Month-to-Month Contracts Reported: 30.23% of warehouses reported offering month-to-month contracts in 2025, down from 56.67% in 2024. Reported availability of annual and multi-year contracts also declined.
What The 2024 Warehouse Pricing Survey Results Mean for Warehouse Customers:
- Price Are Lower: If you’re using warehousing services, the average annual warehouse price increase is slightly lower in 2024 (4.23%) compared to 2023 (4.54%). This could give you a little more breathing room in terms of budgeting for storage and fulfillment.
- Monthly Spend Requirements Are Up: Expect higher minimum monthly spend requirements, which jumped from $195 in 2023 to $337.50 in 2024. This may affect smaller businesses with lower order volumes.
- Pick and Pack Services Are More Expensive: Both B2C and B2B pick and pack fees have increased, with B2C rates rising from $2.97 in 2023 to $3.18 in 2024, and B2B rates going from $4.31 to $4.79. This could mean higher fulfillment costs for each order you ship out.
- More Discounts Available: There’s good news, too. Warehouses are increasingly offering discounted rates for pick and pack services, with 75.48% of providers offering discounts in 2024, compared to 65% in 2023. Shipping discounts have also improved across ground, express, and LTL services.
- Long-Term Storage Fees Are Less Common: Fewer warehouses are charging long-term storage fees in 2024, down from 58% in 2023 to just 23.33%. This could reduce the cost of holding onto inventory for extended periods.
What The 2024 Warehouse Costs Survey Results Mean for Warehouse Owners:
- Occupancy Costs Have Risen: A significant portion of your revenue may now go toward occupancy costs, which increased from 24.90% in 2023 to 31.68% in 2024. This could put pressure on profitability, especially for smaller operations.
- Labor Costs Are Lower as a Percentage of Revenue: On the flip side, labor costs as a percentage of revenue have dropped from 31.70% to 28.59%. While the hourly wage for staff has risen slightly ($16.95 in 2024 compared to $15.78 in 2023), you may be able to maintain a more balanced budget due to this decline.
- Profit Margins Are Tightening: Corporate profit margins have slightly decreased, from 10.49% in 2023 to 9.37% in 2024. This suggests that despite rising costs, overall profitability may be harder to maintain, prompting a closer look at cost control strategies.
- Staying Competitive with Discounts: More warehouses are offering discounts on services like pick and pack. Keeping these competitive rates while managing costs will be key to retaining customers and maintaining profitability.
What the 2023 Warehouse Pricing 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%.
What The 2022 Warehouse Pricing Survey Results Mean for Warehouse Customers:
- Increasing Costs for Core Services: Customers are seeing higher costs in several key areas compared to 2021. Storage fees, for instance, have risen notably—pallet storage increased from $14.79 to $16.21, while bin storage costs decreased slightly from $4.07 to $3.18. Expect these changes to impact your overall warehousing budget.
- Fewer Discounts on Services: Warehouses are offering fewer discounts on services like pick and pack, where only 64% offer discounted rates in 2022, down from 72% in 2021. Similarly, the availability of discounted storage dropped from 49% to 38.7%. This means customers may find it harder to negotiate lower warehouse prices for fulfillment services.
- Higher Fees Across the Board: Additional fees, like account management and call center charges, have increased. Account management fees rose from an average of $160 to nearly $199 per month, and call center fees jumped from $0.85 per minute to $1.43 per minute. Customers should prepare for a rise in service costs as warehouses adjust their pricing structures.
- Consistent Shipping Rates: Despite rising costs elsewhere, some shipping-related expenses have remained stable. For instance, B2C pick and pack prices stayed consistent at $3.13 per order in both 2021 and 2022, providing some cost predictability in this area.
What The 2022 Warehouse Costs Survey Results Mean for Warehouse Owners:
- Higher Labor and Space Costs: Owners are dealing with rising operational costs, particularly in labor and space. The hourly rate for warehouse staff increased from $14.00 in 2021 to $14.97 in 2022, while the cost per square foot of warehouse space rose slightly to $7.96 from $7.91. These small but steady increases in overhead will likely impact profit margins.
- Tightening Profit Margins: Reported corporate profit percentages saw a slight decrease, from 11% in 2021 to 10.58% in 2022, suggesting that rising costs are eating into profits. Warehouse owners need to focus on optimizing operational efficiency to offset these shrinking margins.
- More Pricing Flexibility Needed: With 80% of warehouses regularly increasing their prices (up from 61% in 2021), flexibility in pricing strategies is becoming crucial. Owners may need to balance the frequency of their warehousing price hikes with customer retention efforts, especially given that customer retention dropped slightly from 95.67% to 94.54%.
- Fewer Discounts May Affect Competitiveness: As fewer warehouses are offering discounts, both for pick and pack and storage services, this might affect competitiveness in attracting new customers. Offering alternative value-added services or loyalty programs could help retain customers without relying on constant discounting.
What The 2021 Warehouse Pricing 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 Warehouse Costs 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.
What The 2020 Warehouse Pricing 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 Warehouse Costs 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.
What The 2018-2019 Warehouse Pricing Survey Results Mean for Warehouse Customers:
- Increased B2C and B2B Fulfillment Costs: The cost for B2C pick and pack services rose from $2.64 in 2017 to $2.86 in 2018-2019, while B2B pick and pack prices jumped from $3.74 to $4.17 in the same period. If you’re using these services, expect slightly higher fulfillment costs, particularly for bulk or business-to-business shipments.
- Rising Setup and Account Management Fees: In 2018-2019, 53% of warehouses charged an average setup fee of $336, and 56% added a $226.54 monthly account management fee. If you’re onboarding new warehousing partners, these fees can impact your overall costs, so factor them in when choosing a provider.
- Reduced Ground Shipping Discounts: Ground shipping discounts offered by warehouses dropped from 24% in 2017 to 20.02% in 2018-2019, which may increase shipping costs for ground deliveries. However, there was a notable increase in Less-Than-Truckload (LTL) shipping discounts from 44% to 51.33%, potentially benefiting those with large, freight-based shipments.
- Returns Fees: If your business deals with returns, be aware that 84.62% of warehouses charged an average return fee of $3.53 per return in 2018-2019. This fee could add up depending on the volume of returns you process.
- Stable Discounts for Pick-and-Pack Services: Around 74% of warehouses consistently offered discounted pick-and-pack rates, unchanged from 2017, which may help offset some of the cost increases elsewhere.
What The 2018-2019 Warehouse Costs Survey Results Mean for Warehouse Owners:
- Rising Labor and Management Costs: The average hourly wage for warehouse staff increased from $11.44 in 2017 to $13.32 in 2018-2019, while management salaries saw a similar rise from $47,478 to $50,524. Expect higher labor costs as a significant part of your operational expenses.
- Increased Real Estate Costs: The cost per square foot of warehouse space rose from $6.53 in 2017 to $7.79 in 2018-2019, signaling increased occupancy costs for owners. This might put pressure on profit margins, especially in high-demand areas.
- Declining Corporate Profits: Reported corporate profit percentages dropped from 8.83% in 2017 to 7.25% in 2018-2019. This could be a sign of tighter margins due to rising costs for space, staff, and other operational expenses.
- Regular Price Increases: The percentage of companies reporting regular warehousing price increases rose from 53.85% in 2017 to 64.29% in 2018-2019, with the average annual price increase climbing to 4%, up from 2.37% in 2017.
What The 2017 Warehouse Pricing 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 Warehouse Costs 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.
We’ll Help You Find the Right Warehousing Solution
Our vetting process is designed to connect businesses with reliable warehousing and fulfillment services. Each warehousing company has been carefully evaluated and has demonstrated professionalism and adherence to industry requirements:
- Application and Interviews: Providers complete detailed applications and participate in thorough interviews.
- Reputation Research: Each provider’s track record is reviewed, including checks for Better Business Bureau accreditation.
- Credit Assessment: Credit checks are conducted to confirm financial stability.
- Client References: Feedback from past clients and performance history are carefully evaluated.
- Compliance Standards: Providers must meet key industry benchmarks and offer competitive pricing.
TheFulfillmentAdvisor.com maintains high standards throughout the vetting process. Providers that do not meet these criteria are not included. To get started, submit a form or contact our team to find trusted warehousing and fulfillment solutions.
Frequently asked questions
What are warehouse costs?
Warehouse pricing refers to the costs associated with operating a warehouse. These include expenses such as rent, labor, utilities, insurance, maintenance, and taxes if you manage operations in-house.
What are the average warehouse costs?
According to our latest survey, the cost to rent an industrial warehouse averages $8.31 per square foot. The average costs for outsourced warehousing are $20.37 per pallet, $0.55 per cubic foot, $2.67 per bin, and $1.22 per square foot.
What are warehouse prices?
Warehouse prices are the fees you pay to use an outsourced warehousing service. If you use an outsourced warehousing service, costs typically include pallet storage, cubic foot storage, bin storage, or square foot storage.
What are the warehouse prices for outsourcing warehousing to a 3PL?
Outsourcing your warehousing is the most effective way to lower your warehouse costs. Outsourcing needs to a third-party logistics provider (3PL) is generally the most flexible and affordable option, particularly for businesses that need to scale their warehousing capacity up or down. Annual outsourcing costs usually range from $10,000 to $200,000, depending on the volume of goods stored and the level of service required.
