2020 Warehousing and Fulfillment Costs & Pricing Survey

The 2020 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 2020 Survey Results Mean for Warehouse Customers:

• Increased Costs for Storage and Returns: Customers will notice a rise in storage costs, with pallet fees increasing from $13.20 to $14.58 and bin storage rising from $2.85 to $3.30 between 2018-2020. Additionally, return fees have jumped from $3.53 to $4.05 per return. These increases may impact overall fulfillment costs, particularly for businesses handling large volumes of stock or frequent returns.
• Discounts and Setup Fees: Fewer warehouses are offering discounts, with the percentage of those providing discounted pick-and-pack rates dropping from 74.29% to 69%. However, the cost of setting up services has risen sharply, with setup fees increasing from an average of $336 to $520. Customers may need to budget more for onboarding and fewer discount opportunities.
• Stable Shipping Fees but Rising Return Charges: While shipping discounts and methods have remained relatively stable, return fees have increased significantly. This could affect customers managing high return volumes, making it important to re-evaluate return policies and procedures to control costs.
• Price Changes for Shipping Methods: Notable reductions in Ground and Express shipping discounts, coupled with an increase in LTL (Less-than-Truckload) shipping savings (from 51.33% to 57%), suggest that customers may find more favorable rates with LTL services, particularly for bulk or large shipments.

What The 2020 Survey Results Mean for Warehouse Owners:

• Profit Margins Are Growing: Corporate profits have seen a significant rise, moving from 7.25% to 9.77% between 2018-2020. This suggests that despite rising labor and management costs, many warehouses are finding ways to increase profitability, likely through higher service fees and more efficient operations.
• Management Salaries Have Increased: The salary for warehouse management staff has risen from $50,524 to $52,765. Owners may need to consider these increasing payroll expenses in their overall cost structure but could also view it as a sign of investing in quality leadership.
• Stable Labor and Space Costs: Hourly wages for warehouse staff have remained mostly consistent at around $13.47, while the cost per square foot of warehouse space has seen negligible change, increasing from $7.79 to $7.81. This stability helps owners better predict fixed costs, which could help maintain operational predictability amidst other fluctuating expenses.
• Fewer Discounts Offered to Customers: The decline in the number of warehouses offering pick-and-pack discounts (from 74.29% to 69%) indicates that owners are becoming more conservative with pricing incentives, likely in response to increased labor and setup costs.

2020 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.

2020 Warehousing Performance Trends

2020 Warehousing Agreement Term Trends

2020 Warehousing Costs for Customers

2020 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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