What are the 3PLs Price to FBA Sellers?
Let’s get to brass tacks – what do 3PL prices look like? With so many services, it seems like a lot of pricing to keep track of. Does it get expensive? Does it get too expensive? This article tracks industry rates. It also compares those rates to FbaZoom’s prices. Firstly, lets review how different price models work with different 3PL’s.
How 3PL Price Models Work – Fixed Rate vs Flat Rate
There are two basic types of price models when 3PL offer their services. The first model is the Fixed Rate Model. The second model is the Flat Rate Model. We’ll review each model below.
Fixed Rate Model – 3PL Prices
Fixed Price Models establish fees based on exact services rendered. Sounds simple right? We agree. Clients should only pay for what they need. Clients only pay for the service they request. These services ought to be clearly spelled out, reviewed, and understood. Here’s a short list of services in a Fixed Price Model across the 3PL industry.
Set-Up Fee
This fee accounts for setting up the overall infrastructure for your account, setting up software for your account, and onboarding you into a 3PLs system
- One Time – $99-$199
At FbaZoom – there is no set up. At heart, we are sellers supporting sellers. Set-Up fee’s are a money grab for those who do not know better.
Receiving / Shipping – 3PL Prices
This is the cost for receiving, organizing and forwarding your products.
- Receiving – +$3-5/carton
- Shipping – +$3-5/carton
3PL prices for this service vary. For example, they might charge $3 to receive a carton; but also charge for printing labels, applying labels, or even charge you for calling into check on your shipment. Can you imagine having to pay everytime you call your 3PL for support?!
At FbaZoom – we offer clear SPD Receiving and Shipping services.
At $4/carton, here’s the value we add to our clients:
- Building outbound shipments in Seller Central
- Printing FBA & shipping labels
- Applying FBA & shipping labels
- Staging orders for daily UPS pick ups
For LTL shipments we offer a flat rate of $25 in & $25 out for every pallet.
Container Unloading
If you are shipping a 20ft or 40ft container to a 3PL warehouse, you need to know their ‘unload’ fee. Here’s the 3PL price (generally speaking) of unload services for each container size:
- 40ft’ – $599
- 20ft’ – $399
At FbaZoom we believe less is more. Here’s our container unloading prices:
- 40ft’ – $499
- 20ft’ – $299
What’s more, we include a case count, SKU organization, palletization of all your products in our Container Unload service.
Order Fulfillment / Pick & Pack Fee
It is calculated by the exact number of orders you receive that month. Industry fee’s vary from:
- Units/Order – +$0.50-2.00
- Order – +$1-5
Sellers will encounter the highest variability in this service, with respect to how it’s structured and priced. Not all Pick & Pack services are equal though.
At FbaZoom, we keep it simple. Here’s how our Pick n Pack Order Fulfilment services are priced:
Standard Items Fulfillment (up to 25″ length of any side and under 50 lbs. per order)
- Pick – $0.50/pcs
- Pack – $1.50/order
Oversized Items (Over 25″ length of any given side and under 50 lbs. per order)
- Pick – $0.50/pcs
- Pack – $2.50/order
Large Oversized Items (Over 25″ length of any given side and over 50 lbs. per order)
- Pick – $0.50/pcs
- Starting at Pack – $4.50/order
Product Prep Fees – 3PL Prices
These fees can cover everything from kitting to special packaging and are typically charged per order. Depending on volume, you can often negotiate these rates. Industry fee’s vary from:
- Product Labeling – $0.50-1.00/label*
- Carton Labeling – $1-5/label*
- Polybaging – $1/set*
- Marketing Inserts – $1/insert*
- Repackaging – $1-5/carton*
* All prices are based on industry averages.
Customer Service Fee
This fee reflects calls, messages, and any other communications between your customers and your 3PL provider. Depending on your 3PL provider, customer service may be a flat fee or charged by claim. Do not partner with someone who charges every time you need support.
Reverse Logistics Fee
You may be charged a reverse logistics fee for handling returns and removal orders. Industry fee’s vary from:
- Small Parcel Receiving- $1-5/carton
Seasonality Fees & Adjustments
— Some 3PL providers charge for overtime or holiday work. Review these fees before you sign a contract. Do not partner with someone who charges overtime when you need support.
Pros of Fixed Rate Model
There are no long term contracts in a variable rate model. No contracts mean no start-up fees. With no contracts, there are also no subscription models. In addition it means, there’s no monthly order minimum needed. Most importantly, you can line item the 3PL services rendered at the end of each month in a transparent and calculated way.
Cons of Fixed Rate Model
3PLs will also only deliver on what you pay them, rarely going above and beyond. It may be difficult to get more out of a 3PL team, than what you paid for.
At FbaZoom, we always try to do the little bit extra needed to ensure your clients receive a 5-star product experience. Afterall, your success is our success!
Let’s compare and contrast the Fixed Price Model to the Flat Rate Model.
Flat Rate Model – 3PL Prices
In the Flat Rate model, sellers only pay one flat charge upfront per month. The seller negotiates the average incoming products, outbound orders, and prep in between with the 3PL. They map the pricing out to allow the seller some scalability as they grow. All services are bundled into this fee. It typically looks like a monthly subscription after the average cost of fees for services are agreed upon.
Pros of the Flat Rate Model
The most glaring ‘benefit’ to this model is the plug and play pricing. It allows you to save on any time you would have otherwise invested in calculating the costs of any fixed rate services rendered that month. This is lazy.
Alternatively, this model does put some responsibility onto the 3PL to function more as a partner. A partner who doesn’t simply offer storage but is committed to delivering timely and accurate fulfilment, regardless of the daily outbound orders prepped. The 3PL is committed to delivering services regardless of high or low traffic, because they already have their fixed rate built into a contract with the client.
The Cons of the Flat Rate Model
This model is difficult to quote. It’s hard to build out a pricing structure. It takes time to negotiate.
It also requires a contract. This can include a 6month minimum agreement for subscription services. Don’t corner yourself into a position where a 3PL can charge you for breaking contracts, forcing you to pay for shipping to another 3PL etc…
FbaZoom 3PL Prices
We believe you pay for what you need. FbaZoom’s prices are clear and simple to earn trust and build a relationship with sellers. Let’s take a quick look:
Less Than Truckload (LTL) Shipments
Pallet Receiving – $25 – in per pallet
Pallet Shipping – $25 – out per pallet
Regarding LTL shipments we receive inbound pallets at $25 per pallet. We also build & prep outbound pallet shipments at $25 per pallet.
Small Parcel Delivery (SPD) Shipments
Parcel Receiving – $4 – in per carton
Parcel Shipping – $4 – out per carton No Subscription Fees.
Regarding SPD shipments, we receive inbound parcels at $4 per carton. We also build & prep outbound parcel shipments at $4 per carton.
Again, both LTL and SPD services include FbaZoom completing:
- Building outbound shipments in Seller Central
- Printing FBA & shipping labels
- Applying FBA & shipping labels
- Staging orders for daily UPS pick ups
Monthly Pallet Storage – $49 per pallet
There are no other fees associated with basic receiving and shipping of cartons.
- No Software Fees.
- No Startup Fees.
- No Minimums.
- No Contracts.
- Just Flat Rates.
This is designed to be clear, concise, and quick to understand. Let’s invest less time shopping for 3PL’s and more time on your business. Give FbaZoom a call and speak directly with one of the owners.