How do 3PL Companies Charge?

You have three quotes, and the cheapest one is cheapest on a single line: the per-order rate. That line is rarely where the invoice ends up.

A 3PL (third-party logistics provider) charges for each thing it does to your stock: receiving it, storing it, picking and packing each order, shipping it and handling returns, plus any setup fee or monthly minimum.

Your real cost is the sum of those lines at your order volume, divided by the orders you ship. Compare quotes on that number, and on nothing else.

What goes into a 3PL bill?

Most quotes are built from the same eight lines, even when they are named differently or bundled together.

The lines behave differently as you grow. Pick and pack fees scale with the number of orders you ship, while storage fees scale with how long your stock sits on the shelf. A brand with slow-moving stock and many SKUs can pay more in storage than a brand shipping twice the orders from a tight range.

Why does the cheapest quote often cost more?

Because the headline rate is one line of eight. When Beardbrand moved its fulfilment to a smaller 3PL, it expected shipping costs to fall to about US$10 an order from US$13. They rose to US$14.50 instead, through fees and markups it had not priced in, and boxes too large for the items inside them.

Put two quotes side by side for the same brand, shipping 3,000 orders a month from 40 pallets of stock (all figures illustrative):

Quote A looks 80 sen cheaper per order and ends up 13 sen dearer. Without the total, the operations lead signs Quote A for its RM3.00 rate, and the first invoice lands at RM4.40 an order with four more lines underneath. With it, the same lead sees the gap before signing and either takes Quote B or asks A to fold those lines into its rate.

Which pricing model will a 3PL quote you?

Most quotes follow one of three shapes, and the shape decides what you need to ask.

An itemised quote lists every line separately. It is the easiest to compare and the easiest to underestimate, because each line looks small on its own. Bundling folds receiving, packaging and returns into one per-order rate, so the headline is higher and the invoice more predictable. A fixed monthly fee covers a set number of orders, with an overage rate above it, and suits brands whose volume barely moves month to month.

Occasionally a 3PL will propose a percentage of order value instead. It rewards the 3PL when your prices rise rather than when its work increases, so it is worth modelling against an itemised quote before you accept it.

When does the pricing model matter for you?

It matters most in four situations, and each points to a different line on the quote.

• If your stock moves slowly, storage will outgrow pick and pack. Ask how partial pallets are billed.
• If you carry many SKUs, per-bin storage and per-SKU setup fees add up faster than per-order rates.
• If your returns rate is high, a per-return fee on every exchange changes the total more than any headline rate.
• If you are moving into retail, store deliveries add pallet builds, carton labels, booking slots and delivery windows, which a parcel-only quote rarely prices.

Just remember, put every quote into one sheet before you sign: each line at your real volume, divided by the orders you ship. A 3PL that will not itemise its quote has told you where the extra lines will turn up.

Send us your last three months of orders and we will price them line by line.

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Frequently asked questions

What is a typical pick and pack fee in Malaysia?

Rates vary with order size, items per order, SKU count and packaging, so a single typical figure misleads. Ask for the per-order rate and the per-extra-item rate separately, then compare them at your own average items per order.

Do 3PLs charge a monthly minimum even when orders drop?

Some do. A monthly minimum guarantees the 3PL a floor of revenue, so a slow month can cost the same as a busy one. Ask what the minimum is, what it covers, and whether it applies from your first month or after onboarding.

Is storage charged per pallet or per cubic metre?

Either, depending on the 3PL and your stock. Pallet pricing suits bulky, fast-moving goods; per-bin or per-cubic-metre pricing suits small items in many SKUs. Ask which unit applies and whether partial pallets are billed as full ones.

Why do store deliveries cost more than parcel orders?

Retailers set their own receiving rules: pallet builds, carton labels, booking slots and delivery windows. Each one is extra work the 3PL prices separately. A quote built for parcels often leaves these lines out, so ask for them before your first store order.