The main components of a 3PL invoice
1. Receiving
Receiving covers unloading, checking, logging into the WMS, and putting away stock. It can be charged per pallet, carton, unit, or time spent, depending on how compliant the inbound flow is: a well-labelled, pre-announced delivery costs far less to process than an unidentified arrival requiring detailed checks.
2. Storage
Storage can be charged per pallet, bin, shelf location, or cubic metre. The measurement method matters as much as the headline rate: two providers quoting the same “pallet rate” can bill very differently depending on whether they measure on a monthly snapshot or a daily pro-rata basis.
A surcharge may also apply to slow-moving stock held beyond a threshold set by the provider. Check the rate card for the trigger period, how it’s calculated, and which SKUs it applies to.
3. Order preparation (pick and pack)
The preparation fee usually covers opening the order, picking the first item, checking, standard packing, and sealing the parcel. Additional items are billed per unit or per order line depending on the provider: ask for the exact definition of a “billable unit” before comparing any quotes.
4. Packaging and value-added services
Standard boxes or envelopes may be included or billed separately. Specific operations (branded packaging, inserts, kitting, gift wrapping) are usually billed as distinct line items.
5. Transport
Transport is often the largest single component of total logistics cost. It depends on volumetric weight, destination, delivery option, and applicable surcharges. Transport pricing may include a management margin, either itemised separately or built into the rate. Ask whether transport is billed at cost or with a margin.
6. Returns
Handling a return can involve several distinct operations: receiving, identifying the order, inspection, restocking, or reconditioning. This line item can be missing or underestimated in early quotes, even though it can weigh more heavily on annual cost than the difference in preparation rates between two providers.
UK market benchmark (2026)
The ranges below come from published UK 3PL pricing guides. They provide a general sense of scale to help you assess a quote, not an exact pricing reference: every provider sets its own terms based on your specific profile.
Pick-and-pack pricing in the UK depends heavily on monthly volume, more so than in other markets, so it needs to be read by tier rather than as a single figure.
| Component | Observed market range | Unit |
|---|---|---|
| Pick and pack, under 2,500 orders per month | £1.50 to £2.20 | per order, single item, first pick |
| Pick and pack, 2,500 to 10,000 orders per month | £1.00 to £1.20 | per order, single item, first pick |
| Pick and pack, over 10,000 orders per month | £0.45 to £1.00 | per order, single item, first pick |
| Additional item | £0.10 to £0.50 | per item |
| Pallet storage | £10 to £30 | per pallet per month |
| All-in cost per order, excluding shipping | £2 to £6 | per order |
| All-in cost per order, including domestic shipping | £4.95 to £10.50 | per order, economy to premium next-day |
These variations are driven mainly by monthly order volume (the single biggest lever in the UK market), warehouse location, average basket complexity, and return rate. A provider that looks cheap on one line item can make it up elsewhere: comparing line by line, then reducing everything to a total cost per order at your actual volume tier, remains essential.
Hidden fees worth watching for
These fees can be missing from an initial quote or insufficiently detailed: monthly minimums due even during quiet periods, peak season surcharges, technical integration fees, and contract exit fees. The monthly minimum deserves particular attention: for a seasonal business, it’s often the line item that most damages cost per order during low months.
How to calculate your real cost per order
- Pull a representative period: ideally twelve months of data to capture seasonal swings.
- Apply each rate card to the same data: ask every provider to price the exact same real dataset, not a generic profile.
- Factor in fixed and seasonal fees: integration costs amortised over the contract term, monthly minimums, peak surcharges.
- Calculate several indicators: average cost per order, cost per parcel, returns cost relative to orders, cost in an average month, at peak, and in a low season.
Average cost per order = total annual logistics cost ÷ annual number of orders
Example scenario to submit to providers
The profile below is a fictional, illustrative case designed to show what data to prepare before requesting quotes, not to provide a benchmark rate. Take a business processing 1,000 orders a month, holding an average stock of 12 pallets, and handling 80 returns a month. This kind of profile should cover expected receiving volumes, the storage counting method you expect, 1,000 order openings, additional items based on your preferred pick definition, packaging, 80 return operations, your real destination mix for transport, and fixed fees.
Submitted to several providers, this same scenario produces a reliable basis for comparison, something a single pick rate can never do.
What the contract should specify
The contract should define every billable unit and its measurement method, what’s included in standard preparation, price revision terms (public index, cap, notice period), seasonal surcharges and their exact application period, and any fees tied to contract termination.
Want to work out the real cost of your logistics? Discover how Octopia Fulfillment can support you across the UK and Europe.
Read more:
- E-commerce 3PL Provider: The Complete Guide 2026
- When Should You Switch to a 3PL Provider? 6 Signals to Watch
- How to Choose a 3PL Provider in 2026: 7 Key Criteria
- 3PL vs In-house Fulfillment: The Complete Comparison 2026
