2018-2019 Warehousing and Fulfillment Costs & Pricing Survey

The 2018-2019 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 2018-2019 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 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: More warehouses reported increasing their pricing regularly, from 53.85% in 2017 to 64.29% in 2018-2019, with an average annual price increase of 4%, up from 2.37% in 2017. Keeping an eye on pricing strategies will be crucial for maintaining profitability.

2018-2019 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.

2018-2019 Warehousing Performance Trends

2018-2019 Warehousing Agreement Term Trends

2018-2019 Warehousing Costs for Customers

2018-2019 Warehousing Costs for Owners

Warehouse Pricing Surveys: 2017 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

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