Understanding 3PL Pricing Drivers: What DTC Brands Need to Know

If you're a DTC founder, retail brand marketer, or procurement lead comparing 3PL partners, understanding 3PL pricing drivers is critical to choosing a provider that fits your operational needs. This guide breaks down what influences costs, how workflows operate, key SLAs to track, and how the Atlanta advantage can help you deliver smarter.

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What Are 3PL Pricing Drivers and When Should You Use This Guide?

“3PL pricing drivers” refer to the key factors that influence your total cost when outsourcing logistics to a third-party logistics provider (3PL). These drivers include order volume, package weight and dimensions, storage duration, SKU complexity, special handling requirements, and warehouse location. Understanding these elements is essential when evaluating proposals or validating claims of the “cheapest 3PL” for your brand.

It’s important to note that there is no single “cheapest” 3PL provider that fits all businesses. Pricing varies depending on your mix of order volume, product types, storage needs, and value-added services such as kitting or custom packaging. Two providers may quote similar base rates, but total monthly costs often differ once you factor in receiving fees, storage, pick fees, shipping zones, and returns management.

Using this guide will help you:

• Compare providers on an apples-to-apples basis by requesting an all-in, per-order cost model.
• Identify hidden fees and avoid unbundled charges that can create billing surprises.
• Select a 3PL partner that aligns with your order profile, fulfillment workflows, and seasonal demand patterns.

Step-by-Step 3PL Workflow and How It Affects Pricing

To understand what drives 3PL costs, it’s important to examine each stage of the fulfillment workflow. Every phase affects pricing differently depending on its complexity and labor requirements.

Inbound Receiving and Dock-to-Stock

When inventory arrives at a 3PL warehouse, it is scheduled, unloaded, inspected, labeled, entered into the Warehouse Management System (WMS), and put away.
Cost impact: Higher pallet counts, mixed-SKU cartons, or rework like relabeling increase labor costs. Expedited dock-to-stock SLAs may carry a premium but accelerate inventory availability and reduce stockouts.

Warehousing and Storage

Inventory is stored on pallets, shelves, or bins and may require environmental control or cycle counts depending on the product type.
Cost impact: Storage fees are typically charged by pallet, bin, or cubic foot per month. More SKUs and longer durations increase costs. Maintaining efficient replenishment cadence and turnover helps reduce fees.

Pick and Pack Operations

Pick and pack includes selecting items according to pick tickets, scanning barcodes, packaging with inserts or protective materials, and conducting quality checks.
Cost impact: Providers generally charge per order and per item. Complex, multi-item, or fragile orders increase labor time and material costs.

Kitting and Printing Workflows

Many DTC brands rely on subscription kits, product bundles, retail displays, or marketing inserts that require kitting or printing.
Cost impact: These are project-based labor and materials charges. Managing kitting and printing under one roof reduces freight, handling time, and markup costs.

Order Fulfillment and Shipping

Fulfillment involves generating labels, coordinating carrier pickups, tracking shipments, and resolving exceptions.
Cost impact: Parcel weight, dimensions, and shipping zones directly influence freight charges. An Atlanta-based 3PL can reduce shipping zones for most U.S. addresses, lowering freight spend.

Returns Processing

Reverse logistics includes receiving, inspecting, restocking, and reporting returned goods.
Cost impact: Returns add labor costs and potential write-offs, particularly for fragile or high-value products such as electronics and cosmetics.

Key SLA and KPI Benchmarks for 3PL Pricing Accuracy

Operational performance directly impacts your true fulfillment cost. When comparing providers, use these KPIs and SLAs as standard benchmarks.

KPI / SLATypical RangeWhy It MattersPick Accuracy99.5%+Prevents costly reships, refunds, and customer service casesOrder Cycle Time24–48 hoursEnables faster delivery and improved customer satisfactionDock-to-Stock Time<24 hoursSpeeds inventory availability and reduces stockoutsOn-Time Ship Rate98%+Protects retail SLAs and brand reputation, minimizing penalties

Even if base rates appear competitive, a 3PL maintaining these performance standards can reduce total landed costs through fewer chargebacks, reships, and complaints.

Key 3PL Pricing Drivers

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What Moves Your 3PL Costs Up or Down

Understanding the variables that influence 3PL pricing helps brands negotiate smarter and forecast more accurately.

Order Volume

Higher volumes typically lower per-order pick and pack fees through efficiency gains and batching. Seasonal surges, however, may lead to minimum order fees or surge pricing.

Package Weight and Size

Heavier or oversized packages drive up parcel freight costs, especially when dimensional weight pricing applies. Right-sizing packaging can lead to substantial monthly savings.

Number of SKUs

A larger number of SKUs increases labor and storage costs due to greater picking complexity and cycle counting. Consolidating or standardizing SKUs can reduce these costs.

Storage Requirements

Storage fees depend on type (pallet vs. bin), cubic volume, and duration. Fast-turn inventory reduces long-term charges compared to stagnant stockpiles.

Special Services

Custom kitting, branding, and retail compliance tasks add to labor costs but can improve brand experience and customer lifetime value. These services are best handled by an integrated 3PL provider.

Warehouse Location and the Atlanta Advantage

Strategic location significantly affects freight costs and delivery times. Atlanta-based fulfillment centers can reach approximately 80% of the U.S. population within two days by ground, lowering shipping zones and improving delivery performance.

When comparing quotes, request an all-in, per-order cost model that includes storage, labor, materials, freight, and project-based charges. Using a fulfillment cost calculator, such as those offered by ShipBob or Fulfillyn, can help normalize provider offers and prevent hidden expenses.

Common Risks and Mitigations in 3PL Pricing and Fulfillment

Outsourcing fulfillment introduces risks that can inflate costs if not properly managed. Identifying and addressing these early helps protect margins and service quality.

The Atlanta Advantage in 3PL Pricing and Logistics

Selecting an Atlanta-based 3PL offers measurable advantages in cost, speed, and scalability.

Two-Day Ground Reach to Most U.S. Addresses
Atlanta’s geographic location enables fast, cost-effective ground delivery to roughly 80% of the population.

Lower Freight Costs
Regional carrier networks and proximity to major logistics hubs help minimize shipping expenses.

Streamlined Kitting and Printing
Integrating these services within the same facility eliminates unnecessary handling and freight between vendors.

Scalable Labor Force for Seasonal Peaks
Access to an experienced logistics workforce supports high-volume fulfillment without compromising quality or SLAs.

For growing DTC and retail brands, these advantages translate into tangible cost savings, improved delivery performance, and a more resilient supply chain.

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What You Get With All Points

Based in Atlanta since 1995, All Points delivers end-to-end logistics with operator-grade precision and consistent quality. Services include:

Custom Kitting and Assembly
Tailored kit builds, multi-SKU bundles, retail-ready displays, and subscription boxes aligned with brand standards.

E-Commerce Order Fulfillment
High-accuracy picking, rapid turnaround, and optimized workflows for seamless order execution.

Warehousing and Distribution
Secure, organized storage with inventory control, cycle counting, and environmental options.

Integrated Printing and Marketing Materials
On-site printing and insert production that ensure timely execution and cost efficiency.

Ready to Optimize Your Fulfillment Costs and Service?

• Talk to an Atlanta 3PL expert about a tailored solution for your brand.
• Get a kitting quote for upcoming projects that add value and efficiency.
• Download the 3PL Guide for deeper insights into pricing drivers and strategic fulfillment.

FAQs

What factors influence 3PL pricing?
Key drivers include order volume, package dimensions, storage duration, SKU count, special services, and warehouse location. Use an all-in cost model to uncover the true expense.

How does order volume affect costs?
Higher volumes typically reduce per-order fees due to batching efficiencies and material discounts.

What SLA and KPI benchmarks should I expect?
Aim for pick accuracy of 99.5%+, dock-to-stock within 24 hours, on-time ship rates above 98%, and a 24–48 hour order cycle.

How does an Atlanta location lower costs?
Atlanta warehouses can reach most of the U.S. in two days via ground, cutting zones and freight costs.

What should I expect during 3PL onboarding?
Structured onboarding includes data mapping, inbound scheduling, labeling standards, WMS integration, test orders, and defined dock-to-stock procedures.

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