Universal Fulfillment

The Cost of Hiring an Effective Third-Party Logistics Company


Third-Party Logistics Company for an ECommerce Business

After gathering enough information about 3PL service providers, you may decide to hire a Third-Party Logistics Company for your eCommerce business. Now comes one of the most important questions for any business: what is the cost structure of the Third-Party Logistics Company and does it fit your budget?

Here’s the answer:

The Typical Cost Structure of Third-Party
Logistic Providers:

There are many variables that help determine what these types of services will cost for
your company. For example, there are- storage fees and “in-and-out” fees.

Storage fees

Storage fees are charged by the service provider for storage and warehousing services. 3PLs often provide warehousing facilities for their clients and their rates are based on storage space, location, and other features. Their rates can be determined based on the number of pallets or shelves required to store the products. The size and quantity of the products you need to have stored will come into play.If your products require refrigeration, for example, they may charge an extra fee for that. Some 3pl companies also charge per square foot.

“In-and-out” fees

In and out fees are related to the packing and unpacking of the products. The service providers charge their clients for shipping and receiving the goods in the warehouse. The cost may vary based on the products and the storing services the client requires. The base cost is dependent on the number of laborers working on packing and unpacking the goods and their hourly wage rate.

Other costs

A few other costs associated with 3PL services include boxing and packaging fees, labeling fees,
set up fees, account management fees, work order fees, return shipping, and processing fees. To get a closer idea of the total cost structure,
consider these costs as well when you are researching 3PL companies for your business.

Some things to know about 3PL service costs:

It is wise to perform research and to obtain a thorough understanding about the cost structure before hiring a 3PL company. Finding the most cost-effective solution for your ecommerce business will lead to better utilization of money and other resources.

Is hiring a 3PL company a cost-effective approach?

The services that one receives from their 3PL company are beyond helpful and often more valuable than the cost paid for it. Upon hiring a 3pl company, you will not have to worry about investing in warehouse facilities, supply chain management, inventory management, or hiring employees to pick and pack your products. They can manage many aspects of your business for you. This means that full attention can be given to other core business matters.

How much should be set aside for 3PL?

The answer to this question depends on the requirements of the business. The cost will go up for larger warehouse space and wide-scale distribution services. The cost will depend on the services you require, but it is often the most cost-effective way to handle many aspects of running an ecommerce store. For an ecommerce business, a partnership with a 3PL company can be very beneficial.

Contact us today!

Give us a call today and let’s discuss how we can make things easier for you. We are the logistics service you need for keeping your business on top.

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