Research Proposal

Warehouse Processing Costs


To find the average costs associated with processing orders at warehouses.

Early Findings

  • According to one source, D2C warehouse fulfillments costs around $3.00-4.50. These are "fully loaded" costs, which include, "management salaries, direct and indirect labor wages, total occupancy (including heat, light, space, depreciation and amortization for conveyance and MHE); and packing costs."
  • Their survey should that an "efficient" cost per order ran around $4.24.
  • However, costs can vary dramatically depending on space and type. Some orders costs more than $9 each to process.
  • Another example gave a warehouse that processed 2,100 orders/month. Their costs were $6.52 per order, but these were total costs, not those charged to the customer.
  • However, they also encourage warehouses not to compare costs, as they can vary wildly. Rather, benchmarking should be done against itself.
  • The annual Warehousing and Fulfillment 2018 Survey showed large third-party logistics warehouses, as a collective, charge $2.86 to pick & pack a 1 item B2C order and $4.17 for a 1 item B2B order. These do not include storage or other fees.
  • However, most 3PL warehouses offer volume discounts, usually between 5-10%.
  • 64% of 3PL companies increased their prices that year.
Prepared By
Megan B.
3935 assignments | 5.0