2017 Warehousing and Fulfillment Costs & Pricing Survey

The 2017 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:

Warehousing Services Costs, Pricing, Rates and Fees

What The 2017 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 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.

2017 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.

2017 Warehousing Performance Trends

2017 Warehousing Agreement Term Trends

2017 Warehousing Costs for Customers

2017 Warehousing Costs for Owners

Warehouse Pricing Surveys: 2018 to 2024

• 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.

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