2024 Warehousing and Fulfillment Costs & Pricing Survey

The 2024 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. This information helps you understand market shifts with most participants from the US (95.24%) and a smaller portion from Canada (4.76%), reflecting insights from both markets.

2024 Performance Metrics

All Survey Findings from 2017-2024:

• Warehousing Services Costs, Pricing, Rates and Fees

What The 2024 Survey Results Mean for Warehouse Customers:

• Price Increases Are Lower: If you’re using warehousing services, the average annual 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 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.

2024 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.

2024 Warehousing Performance Trends

2024 Warehousing Agreement Term Trends

2024 Warehousing Costs for Customers

2024 Warehousing Costs for Owners

Warehouse Pricing Surveys: 2017 to 2023

• 2017 Warehousing Services Costs, Pricing, Rates and Fees Survey
• 2018-2019 Warehousing Services Costs, Pricing, Rates and Fees Survey
• 2020 Warehousing Services Costs, Pricing, Rates and Fees Survey
• 2021 Warehousing Services Costs, Pricing, Rates and Fees Survey
• 2022 Warehousing Services Costs, Pricing, Rates and Fees Survey
• 2023 Warehousing Services Costs, Pricing, Rates and Fees Survey
• 2024 Warehousing Services Costs, Pricing, Rates and Fees Survey

We’ll Help You Find Warehousing Solutions

Our network includes carefully vetted companies, from smaller niche providers to larger, full-service logistics providers. What sets us apart is our commitment to objectivity. We don’t accept payments to feature companies in our network. Every recommendation is based solely on performance, capability, and alignment with your criteria. We screen providers, considering their technology, accuracy, shipping rates, and customer service, so you don’t have to.

Last Step

Since 2005 We’ve Been Helping Companies Just Like Yours

Your contact information is held in the strictest of confidence. We will contact you before we connect you with vendors so that we can learn about your situation, obtain any of your contact preferences, and answer any of your questions.

YOU have control over your contact details:

• No unwanted contacts – you control how vendors respond to you
• Remain confidential if you wish
• No commitment to choose any of our vendors
• Ask our Fulfillment experts any questions you have!