2023 Warehousing and Fulfillment Costs & Pricing Survey

The 2023 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 (86%) and a smaller portion from Canada (14%), reflecting insights from both markets.

All Survey Findings from 2017-2024:

Warehousing Services Costs, Pricing, Rates and Fees

What the 2023 Survey Results Mean for Warehouse Customers:

• Rising Storage Costs: The cost for storage services increased in 2023 compared to 2022. For example, the price per pallet went up from $16.21 to $18.30, and the cost per cubic foot rose from $0.50 to $0.55. This indicates that customers should expect to pay more for storing goods.
• Changes in Discounts: The percentage of warehouses offering discounted pick-and-pack services slightly increased from 64.29% in 2022 to 65% in 2023. Similarly, discounts for storage services saw a larger rise, from 38.71% to 47%, offering more opportunities for cost savings.
• Service Fees Vary: The average setup fee increased slightly from $368 in 2022 to $377 in 2023. Account management fees saw more substantial changes, with fewer companies charging these fees (28% in 2023 versus 51% in 2022), but the average fee increased from $198.93 to $261.80.
• Shipping Discounts Are Declining: There was a notable decrease in shipping discounts for ground, express, international, and LTL services, with rates dropping across all categories. For instance, the ground shipping discount went from 21.82% to 15.58%.

What The 2023 Survey Results Mean for Warehouse Owners:

• Higher Labor and Space Costs: The cost per square foot for warehouse space increased slightly from $7.96 in 2022 to $8.22 in 2023. Additionally, the average hourly wage for warehouse staff rose from $14.97 to $15.78.
• Slight Decline in Occupancy and Labor Costs: The percentage of revenue spent on labor costs decreased from 33.09% in 2022 to 31.70% in 2023. Similarly, occupancy costs as a percentage of revenue also decreased slightly from 25.22% to 24.90%.
• Stable Profit Margins: Corporate profit margins remained consistent, with a slight change from 10.58% in 2022 to 10.49% in 2023.
• Contract Trends: More warehouses are offering flexible agreements, with month-to-month terms increasing from 50% in 2022 to 56% in 2023, while annual agreements also increased from 43.9% to 61%.

2023 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.

2023 Warehousing Performance Trends

2023 Warehousing Agreement Term Trends

2023 Warehousing Costs for Customers

2023 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

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!