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If youโre Googling the kind of things that led you to this article, youโre probably realizing that your business has grown beyond the point where you can handle pick and pack fulfillment and shipping operations in-house.
First, appreciate what an amazing milestone that is! Itโs a sign that your company is gaining a loyal following and that the products you provide have found their footing with your target markets.
Next, take a deep breath. There are A LOT of considerations to go through when choosing your pick and pack company. A great one will take your business to the next level. A poor choice can significantly set back your progress. This article will take you through the things you need to consider as youโre interviewing pick and pack partners.
If youโd like more personalized recommendations, please reach out! Our experts have been matching businesses with pick and pack warehouses since 2005 and are attuned to the unique needs of growing companies and startups alike. Weโve helped businesses find the best partners at crucial points in their companiesโ growth, allowing them to expand into new markets and focus internal efforts on making and marketing their products. Our matching services are unbiased, objective and always free to companies.
Average Pricing for Pick and Pack Services
If this is your first foray into outsourcing pick and pack operations, your initial questions probably center on pricing and whether you can keep margins healthy while bringing on additional help.
While prices are going to vary significantly depending on regional and product-specific factors, these rough pricing benchmarks from our latest survey can help you get started in your considerations.
Selection Factors Businesses Need to Consider
Beyond pricing, your business will need to ensure the pick and pack partner you select can meet your needs across the following areas:
- Tech integration: Whether you sell online using Shopify, Amazon, WooCommerce, social-native shopping tools, or sell to businesses using EDI or a proprietary tech stack, you want to make sure that your provider can plug directly into your process without the need for an intermediary.
- Proximity: As youโre getting used to working with an external pick and pack center, you may want to occasionally drop by their facility to stay lightly involved in the process. If so, proximity to your business headquarters may be worth prioritizing. Otherwise, itโs best to find one near the closest inbound port or in a central location within your sales territory.
- Fulfillment time: With certain products, you can compromise shipping speed to provide more affordable pricing. With others, time is of the essence. Ensure you pick a provider that can accommodate your customersโ expectations when it comes to shipping and handling times.
- Customer service: Your businessโs reputation hinges on responsiveness and proactive problem-solving. Select a pick and pack fulfillment center that is willing to work with you to implement systems around order tracking, reverse logistics, and lost or delayed package issues.
- Shipping courier discounts: Pick and pack companies are often able to negotiate discounted rates on freight because of the cumulative scale of all the shipments they manage. When interviewing companies, inquire if they have any such deals with your preferred carriers.
- Appropriate package sizing options: Ask about the sizes of packaging offered and ensure the options represent choices that are cost-efficient for your business. For example, if you need to ship out socks that can fit in an envelope, you donโt want to be splurging for shipping on a large corrugated box.
- Eco-conscious packaging: If sustainability is a core part of your brand ethos, youโll need a partner whose practices are in line with your beliefs and whose packaging choices represent your business in the best light.
- Preferred shipping partners: Ensure you are comfortable with the couriers your provider uses. If they have a poor reputation when it comes to timeliness and care, it will eventually rub off on your business.
- Service and size: Look for pick and pack services that specialize in your sales channels (B2C or B2B), and choose a company that targets companies of your size.
- Industry specific needs: If youโre shipping products that require climate control or other special handling, youโll want to make sure your pick and pack warehouse has experience dealing with similar needs. Donโt be afraid to ask about specific companies theyโve worked with and how theyโve accommodated their needs.
- Choose sources carefully: Be cautious of โtop listsโ โ theyโre often paid placements, self-promotional, and represent only a small fraction of the available options. Avoid referral sites claiming to be free; most arenโt. Instead, they earn commissions that can indirectly affect your business. Similarly, be wary of software companies profiting from referrals to 3PLs that use their platform, or 3PLs that monetize referrals to other 3PLs.
How We Make Our Recommendations
If youโre still feeling somewhat overwhelmed by the process, weโre here to help. Schedule a call with a member of our highly experienced team or fill out a form and weโll help match you with your ideal pick and pack service, free of charge. Our analysis is independent, completely unbiased, and rooted in decades of pick and pack know-how.
When you get in touch, weโll ask a few questions to better understand your business model and your personal priorities. Our decades of experience working with pick and pack warehouses allow us to maintain an up-to-date database of the industryโs leading providers. Weโll assess which is the best fit for you based on pricing, location, packaging, compliance needs, integrations, speed, and dozens of other factors.
Then, weโll match you with the providers we feel can best meet your needs. You have no obligation to move forward with our recommendation. Whether our matchmaking results in you finding your pick and pack partner or not, you pay nothing. Pick and pack companies pay us a one-time fee of less than $50 to get the chance to quote your project.
FAQs About Pick and Pack Fulfillment
What are pick and pack services?
Pick and pack services are a step in the fulfillment process where items are selected from inventory (picking) and combined and packaged securely in cartons (packing) for shipment to customers. It is commonly used in B2C e-commerce and order fulfillment operations but may also be used in some B2B applications. Pick and pack is also referred to as fulfillment.
What is involved in the pick and pack process?
The pick and pack process involves receiving and storing products at a warehousing facility, where inventory is tracked and managed for accuracy. Items are then picked from storage locations based on orders, often using barcoding and electronic tickets to streamline efficiency. The selected items are packed according to client instructions, ensuring secure and accurate packaging. Finally, the packed orders are shipped to customers, with the facility coordinating distribution to minimize costs. The process also includes providing order confirmations, inventory control updates, and ensuring timely delivery.
What methods do professional pick and pack fulfillment services use to improve operations?
Warehouses usually choose between four common pick and pack methods. Piece picking is the simplest method, where items are picked one by one for each order, ideal for small orders but time-consuming for large ones. Zone picking divides the warehouse into zones, assigning pickers to specific areas to reduce travel time and improve efficiency, making it suitable for larger warehouses. Batch picking allows pickers to collect items for multiple orders in a single pass, ideal for small or low-demand items, minimizing travel time in high-volume warehouses. Wave picking combines zone and batch methods, grouping orders into timed waves to optimize efficiency for diverse orders and varying deadlines.
How do professional pick and pack companies reduce pick times for e-commerce orders?
Professional pick and pack companies reduce pick times by optimizing warehouse layouts, strategically placing popular items near packing stations to minimize travel time. They use advanced inventory management systems and picking technologies (such as barcode scanning, pick-to-light systems, and voice-directed picking) to provide real-time visibility, ensuring accurate and efficient item retrieval. Efficient storage solutions, such as organized bins and clear labeling, further streamline the process. Additionally, they train and cross-train their pickers to follow best practices and adapt to changing order volumes, maximizing efficiency and flexibility.
What are the benefits of outsourcing with a pick and pack warehouse?
Outsourcing to a professional pick and pack warehouse offers numerous benefits, starting with improved accuracy and reduced shipping errors. These facilities leverage advanced technology and experienced teams to ensure orders are processed, picked, and packed with precision, minimizing damaged shipments and increasing customer satisfaction. Many also provide 24/7 access to online management systems for real-time monitoring, approvals, and adjustments, giving you greater control over your fulfillment operations.
Pick and pack warehouses also help lower costs by eliminating the need for expensive in-house storage, staffing, and transportation. They utilize their established networks and industry expertise to negotiate better freight rates and streamline the supply chain, making it easier for you to compete with larger companies. Additionally, they are highly scalable, allowing you to adjust space and labor needs based on inventory demand, whether during seasonal peaks or periods of growth.
Another key advantage is efficiency. By handling all aspects of the fulfillment process, including billing, audits, and operations, these warehouses allow your team to focus on core business priorities. Their flexibility also supports businesses with varying needs, from accommodating seasonal fluctuations to offering customized services like branded packaging or personalized inserts to enhance the customer experience. Ultimately, outsourcing with a pick and pack provider saves time, reduces stress, and enables your business to grow more efficiently.
What pick and pack fees do companies charge?
Pick and pack companies typically charge customers for receiving, storage, fulfillment (or pick and pack fees), and shipping. Specifically, pick and pack fees are usually charged on a per order basis OR a per order plus a per item basis. The average pick and pack fee from our latest survey was $2.50 per order and $.68 per item.
Who are the top pick and pack fulfillment providers?
The “top” pick and pack provider for your business depends entirely on your unique needs, such as product type, order volume, service requirements, and location. Different providers excel in specific industries, technologies, and scales of operation. While companies like ShipBob, ShipMonk, ShipHero, ShipHype, and others frequently appear on “top lists,” this doesn’t guarantee they are the best fit, or even suitable, for your business. Selecting the right pick and pack fulfillment company requires a careful assessment of your priorities and a detailed comparison of how each provider aligns with your specific goals.
What are the most popular pick and pack companies in the US?
The top US location for pick and pack services are Los Angeles, New York/New Jersey, Texas, Chicago, and Miami. These locations are population centers within the US, making them ideal for distribution to customers within the local markets.
What are the most popular pick and pack companies in Canada?
The most popular pick and pack locations in Canada are Toronto (representing the largest population base in Canada), Vancouver (a strategic port of entry from China), and Montreal (another strong population base).