Did you know that creating a 3PL fulfillment pricing template can reduce logistics cost overruns by up to 20%, improving budget accuracy and cost control?
Our pricing template helps you calculate fulfillment costs and optimize logistics expenses. Download it for free and start saving today!
What is a 3PL Fulfillment Pricing Template and How to Use It?
A 3PL fulfillment pricing template is a structured tool designed to help businesses assess and compare the pricing models of different third-party logistics providers.
To simplify the process of managing fulfillment costs, we’ve developed a comprehensive template that breaks down key pricing components such as warehousing, fulfillment, shipping, and value-added services. This guide provides a clear view of the cost structure, helping you optimize expenses and ensure accurate budgeting.
To simplify your work we have created a 3PL fulfillment pricing template below.
GET YOUR 3PL FULFILLMENT PRICING TEMPLATE
Preparing to Create Your Pricing Template
Before you start creating your pricing template, it is important to take certain steps to ensure that you have a clear picture of your fulfillment needs and the data required for accurate calculations.
Identifying Your Fulfillment Needs
Take some time to evaluate your business’s fulfillment requirements. This includes factors such as:
- volume of orders you receive
- types of products you sell
- geographic locations you serve
- any special handling or packaging considerations
Understanding these needs will provide a foundation for determining the appropriate pricing structure.
For example, if you have a high volume of orders, you may require a provider with efficient order processing capabilities and a large warehouse space to accommodate your inventory.
On the other hand, if you sell fragile or perishable products, you may need a provider with expertise in handling and packaging delicate items.
Furthermore, consider the geographic locations you serve. If you have customers spread across the country or even internationally, you may need a third-party logistics expert with a wide distribution network to ensure timely and cost-effective delivery.
Gathering Necessary Data
To create an accurate pricing template, gather and organize the following data:
- Current fulfillment costs: Include all expenses related to order fulfillment.
- Transportation rates: Research and compare rates from different carriers.
- Inventory management expenses: Factor in the cost of warehousing, including any specialized storage needs like temperature-controlled facilities.
- Other relevant financial data: Include labor costs, packaging materials, software fees, and additional services like returns processing or kitting.
Key areas to focus on:
- Thorough cost analysis: Include all relevant expenses, such as labor for picking and packing, packaging materials or software and technology fees.
- Transportation rates: These can vary based on product size, weight, and shipping distance.
- Inventory management & storage: Consider specialized storage conditions like temperature-controlled facilities.
- Benchmarking: Compare your costs against industry standards to ensure competitiveness and identify areas for cost adjustments.
Step-by-Step Guide to Creating Your 3PL Pricing Template
The following step-by-step guide will help you through the fulfillment process, ensuring that you capture all the necessary details for accurate 3pl cost calculation.
Step 1: Set Up Your Template Structure
Follow these steps to create your pricing structure:
- Create a clear and organized structure for your pricing template.
- Divide it into sections corresponding to various pricing components such as, inventory storage, pick and pack, transportation, value-added services.
- Consider your business’s specific needs when setting up the template (e.g., creating separate sections for specialized services like kitting or labeling).
- Customize the template to align with your operations, ensuring that the pricing calculations reflect the costs of each service accurately.
- Include additional details in each section for clarity (e.g., specify types of storage space options like pallet storage, bin storage, or temperature-controlled storage).
Step 2: Input Your Data
Enter all relevant cost data into the template for better monitoring:
- Input the gathered data into the pricing template, including all relevant costs and rates for each section.
- Use formulas and functions in spreadsheet software to automate calculations.
- Double-check your inputs for accuracy and consistency.
- Consider both fixed and variable costs in your template.
- Provide a comprehensive view of the expenses, including fixed and variable costs, to offer transparency and help clients understand pricing factors.
Step 3: Calculate Your Costs
Calculating costs of shipping can be done quite easy if you use a template and account for all factors to reflect your the services you offer as a 3PL:
- Calculate the total costs for each section and the associated costs of your 3PL services using the formulas and functions in your template.
- Account for additional factors that may impact pricing, such as expedited shipping costs for faster delivery or specialized packaging costs, like custom boxes.
- Ensure your pricing reflects the value and level of service provided, which builds trust with clients.
Remember, creating a cost structure is an iterative process for a 3PL. As your business evolves and new services or costs arise, you may need to update and refine your template.
By regularly reviewing and adjusting your template, you can ensure that it remains accurate and competitive in the dynamic logistics industry.
Average Pricing for Order Fulfillment with a 3PL
Below is an example of typical 3PL pricing structures and their related expenses.
| Fulfillment Costs Category | Pricing Breakdown per Unit |
| Initial Setup Fee | Typically averages $385, but can range from $0 to several thousand dollars$268 on average for eCommerce store integration, often bundled with the overall setup cost. |
| Inbound Freight Charges | Discounted rates based on carrier agreements. |
| Receiving Charges | $40.79 per hour OR $350 for a 20-foot container$425 for a 40-foot container$3.00 per box$12.91 per pallet$0.35 per item$2.50 per SKU |
| Storage Costs | $20.37 per pallet$0.55 per cubic foot$2.67 per bin$1.22 per square foot of warehouse space. |
| Order Processing Fee | $2.50 per order PLUS $0.68 per additional item (average $3.18 per single-item order)$4.79 per B2B transaction.Discounts available for high-volume orders. |
| Packaging Fee | $1.19 per box (some fulfillment companies include this in the processing fees, which slightly increases the total fulfillment charge. Average range: $0.50 – $1.50 per box). |
| Order Inserts | $0.25 per insert OR $0.05 per label. |
| Outbound Shipping Costs | Discounted based on carrier-negotiated rates (e.g., 19.90% off ground shipping, 23.04% off express, 21.70% off international, and 22.92% off LTL freight). Using your own carrier may cost $1.00 – $3.00 per order. |
| Return Processing Fee | $3.50 per order PLUS $0.45 for each additional item returned (average $3.95 for a single item return). |
| Assembly or Kitting Fee | $39 per hour OR custom rates per order/item based on time studies ($0.25 – $0.65 for simple projects per unit; average of $0.38 per unit). |
| Account Management Fees | Account management fees are $236.67 per month, ranging from $30 to $500 based on service complexity. |
| Customer Support Services Fee | $1.19 per minute for call center services. |
Please note: The pricing provided is an example and may not accurately represent Fulfyld’s service rates.
How Often Should I Update my 3PL Pricing Template?
You should update your template regularly, ideally every 6 to 12 months, or whenever significant changes occur in your business or logistics operations. Here are some tips to help you effectively maintain and update your 3PL pricing model:
Regular Review and Update of Your Template
- Set a Regular Schedule: Determine a specific schedule for reviewing and updating your pricing template, whether it’s quarterly, semi-annually, or annually. The frequency should align with your business’s dynamics.
- Stay Informed about Industry Trends: Keep a close eye on changes in your industry, including market rates and trends. Regularly updating your pricing template ensures it remains competitive and profitable without any other hidden costs.
- Analyze Your Cost Structure: During your scheduled review, take time to scrutinize your structure. Look for areas that might require adjustments, considering factors like inflation, material cost fluctuations, and shifts in customer demand.
- Proactive Adjustment: Being proactive in your review process allows you to promptly make adjustments to your pricing model. This agility helps you stay competitive in the market and maintain profitability.
- Seek Feedback and Input: Don’t overlook the importance of feedback. Engage your sales team and customers to gather valuable insights. They can identify challenges and opportunities.
Regularly revisiting and updating your pricing template in this structured manner helps you maintain a competitive edge, adapt to market changes, and cater to the evolving needs of your customers.
Adapting Your Template to Changing Business Needs
As your business evolves, your services may change. It is important to adapt your 3PL pricing strategies accordingly.
If you introduce new products, expand into new markets, or experience fluctuations in order volume, revisit and adjust your structure to accurately reflect these changes.
When adapting your template, consider the specific requirements of each new product or market segment.
- Take into account factors such as packaging, shipping distances, and any additional services that may be required. By tailoring your pricing model to these unique needs, you can ensure that your order fulfillment costs are accurately reflected and that your pricing remains competitive.
- Keep an eye on industry trends and emerging technologies. As new innovations and efficiencies are introduced, they may impact your pricing structure. Stay informed about any advancements that could potentially lead to cost savings or improve your fulfillment service offerings.
- Don’t forget to communicate any changes to your pricing template to your sales team and customers. Transparency is key to maintaining strong relationships and avoiding any misunderstandings. Clearly explain the reasons behind the adjustments and highlight the benefits that these changes bring to your customers.
What Common Mistakes Should I Avoid When Creating a 3PL Pricing Template?
While creating a third party logistics pricing template can be a valuable exercise, it’s important to be aware of common pitfalls and avoid them. Here are two key pitfalls to watch out for:
Avoiding Overcomplication
Keep your pricing template as simple and straightforward as possible. Avoid excessive complexity or unnecessary details that may confuse or overwhelm you or your team. Focus on capturing the essential information needed for accurate calculations and decision-making.
Ensuring Accuracy in Data Input
The accuracy of your pricing model depends on the accuracy of the data you input. Take the time to double-check your inputs and ensure consistency throughout. Mistakes in data entry can lead to incorrect calculations and inaccurate pricing, potentially costing your business time and money.
Creating a fulfillment pricing template is an important step towards optimizing your supply chain operations and maximizing profitability.
By following this step-by-step guide, regularly reviewing and updating your template, and avoiding common pitfalls, you can ensure that your pricing remains competitive, accurate, and aligned with your evolving business needs. Take control of your fulfillment costs and drive your business towards success!
Start Optimizing Your Fulfillment Costs
Using our pricing template helps you gain clear insights into your logistics expenses. By automating cost calculations, you save time, minimize errors, and easily identify areas to reduce costs across storage, shipping, and value-added services.
Whether you’re working with a 3PL fulfillment provider or with different providers, this template will streamline your pricing process. Start using the template today and unlock the potential to improve both operational efficiency and financial outcomes of your third party logistics.
FAQs
Why is creating a 3PL pricing template important for my business?
A pricing template provides transparency into all logistics costs, helping you accurately forecast expenses and avoid hidden fees. It also simplifies the comparison of providers, allowing you to choose the best option. Overall, it aids in budgeting and cost efficiency.
What are the key components to include in a 3PL fulfillment pricing template?
Fulfillment pricing models include storage fees, pick and pack costs, shipping charges, and other services like kitting or labeling. You should also account for additional costs for one-time setup fees and monthly minimums. These elements ensure comprehensive coverage of all fulfillment fees.
How much is a standard 3PL fee?
The fee typically ranges from $2.50 to $3.50 per order, with additional fees for services like receiving, storage, and packaging. For instance, receiving charges can be around $40 per hour, while storage costs average $20 per pallet.
How do you calculate logistics cost?
Logistics costs are calculated by summing up all the relevant expenses, including storage, pick and pack fees, shipping rates, and any added services. For example, you’ll need to consider factors such as the size and weight of products, shipping distance, and any special handling needs.
What is included in the fulfillment fee charged by 3PL providers?
The fulfillment fee typically includes costs such as pick and pack, labeling, and shipping preparation. Some fulfillment providers offer all-inclusive pricing, while others charge separately for these services, so it’s important to get a detailed breakdown to understand what you’re paying for.
Are there volume discounts available for ecommerce businesses?
Yes, many 3PLs offer volume discounts to ecommerce businesses that ship large quantities of orders. The more orders you process, the lower your per-unit cost may be, helping to improve your profit margin over time.
What is the difference between fixed and variable pricing models in 3PL?
A fixed pricing model provides predictable costs for fulfillment services, regardless of order volume, while a variable pricing model adjusts based on the number of orders and services used. Both models can be beneficial depending on your business’s size and order volume.
