Figuring out fulfillment costs shouldn’t feel like guesswork. Yet many e-commerce sellers struggle to get straight answers about what they’ll actually pay for pick and pack services.

This article gives you a clear pick and pack cost breakdown. You’ll learn industry pricing ranges, what fees cover, and how to calculate your own monthly expenses. By the end, you’ll know exactly what to expect when evaluating 3PL partners for your business.

Key Takeaways

• Pick and pack costs typically range from $1.50 to $4.00 for the first item and $0.25 to $0.75 for each additional item per order.
• These fees cover order processing, packing materials, and carrier handoff, but storage and shipping are billed separately.
• Calculate your monthly costs by multiplying your order count by the first item fee and adding the per-item fee for all additional items.

How Much Does Pick and Pack Cost?

 

Pick and pack costs typically range from $1.50 to $4.00 for the first item in each order. Additional items in the same order cost between $0.25 and $0.75 each. At IWS, we charge $2.50 for the first item pick fee and $0.40 for each additional item.

These fees cover the labor and materials needed to process your orders. The first item costs more because it includes locating the order, pulling the initial product, and setting up the shipment. Additional items cost less since the order is already in progress.

Here’s how typical pick and pack fees compare:

Fee Type	Industry Range	IWS Rate
First Item Pick	$1.50 to $4.00	$2.50
Additional Items	$0.25 to $0.75	$0.40
Promotional Inserts	$0.25 to $0.50	$0.40
Return Processing	$2.00 to $5.00	$2.40 + $0.40/item

Most 3PLs include basic packing materials in their pick fees. This covers standard boxes, poly mailers, and void fill. Some providers charge an extra $0.10 to $0.50 for materials, so ask upfront.

Special handling adds to your costs. If your products need lot tracking, expiration date management, or extra protection for fragile items, expect additional fees. Health and beauty brands and beverage companies often face these charges.

Your monthly order volume affects pricing too. Many providers offer lower rates when you hit certain thresholds. Orders in the 500 to 999 range often see 10% to 15% discounts. Hitting 1,000+ monthly orders can bring even better rates. Always ask about volume tier pricing before signing a contract.

What Does Pick and Pack Include?

Pick and pack fees cover the work that happens between receiving your order and handing the package to a shipping carrier. This includes several steps that move your product from warehouse shelf to customer doorstep.

A standard pick and pack service includes:

• Receiving order data from your sales channel (Shopify, Amazon, WooCommerce)
• Locating and pulling items from warehouse storage
• Checking product quality before packing
• Selecting the right box or mailer size
• Adding protective packing materials
• Sealing and labeling the package
• Passing the shipment to carriers for delivery

Some costs fall outside of pick and pack fees. Storage is billed separately, usually as weekly or monthly bin and pallet rates. Shipping and postage are passed through at carrier rates. Custom branded boxes, tissue paper, or special inserts often cost extra. Kitting, product assembly, and returns processing also carry their own fees.

The key is knowing what’s bundled versus what’s itemized. At IWS, standard packing materials come included with pick fees. We recommend asking any potential provider for a complete fee list before making decisions. This helps you compare apples to apples when evaluating pick and pack services.

How to Calculate Your Pick and Pack Costs

 

Calculating your monthly pick and pack costs takes just a few numbers. Start with your order count, average items per order, and any extras like promotional inserts.

Here’s a simple formula:

Monthly Cost = (Orders × First Item Fee) + (Additional Items × Per-Item Fee) + (Inserts × Insert Fee)

Several factors shape your final number. Your average items per order matters most. A business shipping single-item orders pays less per order than one shipping three items each time. Monthly volume impacts your rate tier. Special handling for fragile products, lot tracking, or expiration dates adds fees. Marketing inserts or samples increase costs too.

Let’s look at two real scenarios using IWS rates.

Scenario 1: Small Beauty Brand This brand ships 300 orders per month with an average of 1.5 items per order. That’s 150 additional items beyond the first. No inserts.

Calculation: (300 × $2.50) + (150 × $0.40) = $750 + $60 = $810 per month

Scenario 2: Growing Consumer Goods Brand This brand ships 750 orders monthly with 2.5 items per order average. That’s 1,125 additional items. They include a promotional insert in every package.

Calculation: (750 × $2.50) + (1,125 × $0.40) + (750 × $0.40) = $1,875 + $450 + $300 = $2,625 per month

Before committing to any provider, request sample invoices showing actual client charges. This gives you a realistic view of what your monthly bill will look like. You can learn more about the full picture of fulfillment costs to budget accurately.

Hidden Costs That Affect Your True Pick and Pack Expenses

The pick and pack fees you see advertised don’t always tell the full story. Many 3PLs add charges that surprise sellers after they’ve signed contracts.

Watch out for these common hidden fees:

• Onboarding or setup fees ranging from $500 to $2,000+
• Monthly minimums requiring a set spend even during slow periods
• Account management fees for “dedicated support”
• Receiving fees charged per carton or pallet when inventory arrives
• Rush processing premiums for same-day handling

Protecting yourself starts with asking the right questions. Request a complete fee schedule before signing anything. Ask specifically about minimums and what triggers them. Get sample invoices from the provider showing real charges to existing clients.

At IWS, we take a different approach. We charge no onboarding fees and provide transparent pricing on all services. What you see is what you pay. This matters because hidden costs can add 20% to 30% to your expected expenses. Understanding the true cost of fulfillment helps you make better decisions for your business.

Pick and Pack Costs FAQs

Do pick and pack costs include shipping?

No, pick and pack fees cover order processing only. Shipping and postage are billed separately, usually at discounted carrier rates your 3PL has negotiated.

Can I negotiate pick and pack rates with a 3PL?

Yes, most providers offer better rates when you commit to higher monthly volumes or longer contract terms. Ask about volume tier pricing and what thresholds unlock lower fees.

Are there minimum order requirements for pick and pack services?

Many 3PLs require 200 to 500 monthly orders to work with them. IWS partners with businesses shipping 300+ orders per month, making us a good fit for growing brands ready to scale.

What is considered a good pick and pack cost per order?

A competitive rate falls between $2.50 and $3.50 for single-item orders when basic packing materials are included. If you’re paying more than $4.00 per order, compare quotes from other providers.