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Deciphering 3PL Pricing Why Red Stag Fulfillment Stands Out

Deciphering 3PL Pricing: Why Red Stag Fulfillment Stands Out

Have you ever wondered what the 3PL pricing structure is like? Well, it is not an easy task to understand 3PL pricing as many 3PL companies are not transparent in their pricing structures.

This article will give you an overview of the components of 3PL Pricing and will give you additional information regarding why Red Stag Fulfillment stands out among 3PL providers.

Understanding 3PL Pricing Structures

As its name suggests, a 3PL (third-party logistics) is a partner that assists you with your logistics operations. 3PL service providers take control of warehousing to order fulfillment and shipping allowing the business owners to fully concentrate on the growth and empowerment of their businesses. ShipBob, Red Stag Fulfillment, ShipMonk, Shipfusion, etc are some of the well-known 3PL providers.

To choose the right 3PL service provider for your business it is important to understand their pricing models. Let us now understand the major components of 3PL costs. Now these components can vary depending on different 3PL logistics providers.

What are the components of 3PL pricing?

  • Onboarding fees or Setup fees

The onboarding fee is the initial one-time cost that has to be paid for integrating systems, setting up accounts, and aligning workflows.

  • Storage fees

The storage fee is the amount paid for the space used in the warehouse, storage duration, and the number of SKUs managed.

  • Picking and Packing fees

The picking and packing fee is the amount paid for the entire process of selecting items from the inventory packing them and shipping them.

  • Shipping fees

The shipping fee is the amount determined by the carrier rates, delivery speed, and any negotiated discounts the 3PL provider offers.

  • Value Added service fees
    • Kitting: Kitting is the amount for assembling multiple similar products into a single package.
    • Returns Processing: The amount for handling and inspecting returned items for resale.
    • Customizations: The amount for branding, gift-wrapping, or special packaging requirements.

Other factors that influence 3PL pricing are,

  • If you have a higher order volume you are eligible for bulk discounts whereas small businesses will have higher per-unit costs.
  • Larger products occupy more storage space and have higher shipping fees.
  • International shipments cost more due to additional customs, taxes, and carrier fees.

Challenges Businesses Face with 3PL Pricing

Outsourcing logistics can simplify operations and save time but going through 3PL pricing comes with its own set of challenges. Let us have a look at the challenges businesses face with 3PL pricing,

  • Lack of Transparency in Pricing Structures

Generally, 3PL pricing models are complex, no clear breakdowns make it difficult for businesses to understand how much they are paying for each service leading to a lack of trust.

  • Hidden Fees That Inflate Costs

3PL providers add extra charges like peak season surcharges, special service charges, etc. These are hidden charges that cause frustration for businesses.

  • Difficulty in Aligning Services with Business Needs

Many 3PL providers do not offer services that are tailored for businesses which can end up in small businesses paying extra for services that they do not require.

How much is a standard 3PL fee?

A standard 3PL fee depends on the services provided by the 3PL providers. Here’s a general breakdown of typical 3PL fees:

SERVICETYPICAL RANGENOTES
ONBOARDING FEES  $200–$1,000 (one-time fee)  Covers initial account setup, system integration, and staff training.  
STORAGE FEES  $5–$15 per pallet per month  Higher for specialized storage (e.g., climate-controlled).  
PICKING AND PACKING FEES $0.50–$5 per order line item  Additional charges for custom packaging or multi-item orders.  
SHIPPING FEES Varies Based on carrier rates, package weight, size, and shipping destinations.  
KITTING $0.50–$2 per kit  Depends on the complexity of assembly and packaging.  
RETURNS PROCESSING $2–$10 per return Costs vary with the complexity of return inspections and restocking.  
CUSTOM SERVICES Additional Costs Includes branding, special handling, or other tailored services.  

How to calculate 3PL cost?

Cost ComponentHow to CalculateExample
Storage FeesMonthly rate × Number of pallets or bins used.$10/pallet × 10 pallets = $100/month
Picking FeesFee per item × Number of items picked.$1/item × 2 items × 1,000 orders = $2,000
Packing FeesFee per order × Number of orders.$1/order × 1,000 orders = $1,000
Shipping CostsAverage shipping cost per order × Total orders.$5/order × 1,000 orders = $5,000
Onboarding FeesOne-time onboarding fee (spread over months, if applicable).$500 setup fee (one-time)
Additional ServicesService fee × Number of instances (e.g., kitting).$1.50/kit × 200 kits = $300
Returns ProcessingFee per return × Number of returns.$5/return × 50 returns = $250

3PL monthly price calculation, add up all the expenses,

  • Storage fees= $100
  • Picking and Packing fees= $3,000
  • Shipping fees= $5000
  • Additional services and return fee= $550

Total monthly cost $8650.

Is 3PL more expensive?

3PL pricing may appear more expensive due to its fees, but in the long term, it can save costs by improving operational efficiency, offering discounted shipping, and reducing overhead. For small businesses or startups, 3PL may seem costlier initially but becomes viable as the company grows.

How much is the average fulfillment fee per order?

The average fulfillment fee per order typically ranges between $5-$15 depending on factors like order size, product type, and shipping destination. This fee includes,

  • Picking fee: $0.50-$3 per item.
  • Packing fee: $1-$3 per order.
  • Shipping fee: $4-$15 per order.

Red Stag Fulfillment: An Overview

Red Stag Fulfillment is a well-known 3PL provider known for its reliability and efficiency. They believe in caring for their clients’ businesses like their own business. They are known for listening to their clients’ needs and vision and delivering accordingly. Unlike other 3PL providers, they do not have any hidden fees they are very transparent with their pricing instilling a sense of confidence and trust among their customers towards them.

Red Stag Fulfillment does not provide any random pricing on its page you can request a custom quote.

To request a custom quote you need to follow 4 steps.

Step 1: Enter basic details like your name, email, and phone number.

Step 2: The second step is to enter your company name, website, and the fulfillment solution you are using currently.

Step 3: The third step is to add information regarding your logistics like the type of product you sell, average monthly package volume, average package weight, SKU count, percentage of returned orders etc.

Step 4: The final step is to enter information regarding additional information about your fulfillment needs and then submit. Once they review your form they will contact you via email or call.

Why Red Stag Fulfillment Stands Out in 3PL Pricing?

  • Transparent Pricing Model

Provides detailed quotes with no hidden fees and also offers tailored solutions depending on the client’s needs.

  • Value Added Services

Offers order accuracy and speed and high-quality handling of products prone to damage.

  • Competitive Edge

Provides a ‘zero shrinkage’ guarantee and discounts on bulk shipments.

  • Technology and Efficiency

Makes use of warehouse management systems and advanced tracking and real-time reporting.

Comparing Red Stag Fulfillment with Other 3PL Providers

ASPECTRED STAG FULFILLMENTOTHER 3PL PROVIDERS
Pricing TransparencyClear, detailed quotes with no hidden fees.Complex and opaque pricing models, often with hidden charges.
Customer-Focused ServicesHigh-quality, specialized services for heavy, high-value, or fragile products.Generalized services are less tailored for specialized needs.
Cost-Effectiveness for Specialized NeedsCost-effective for businesses with specialized needs, such as oversized, heavy, or fragile products. Bulk shipment discounts and strong carrier partnerships.May charge higher fees for specialized services, with potential inefficiencies in handling.
Overall Customer ExperiencePredictable costs, excellent customer support, and guaranteed accuracy and speed.Can have unexpected costs and a more generic service offering.

The Last Shot

Understanding 3PL pricing is essential for every business to optimize its logistics effectively. 3PL pricing may be complex to understand because of its multiple components. Finding a transparent, reliable, and efficient 3PL logistic provider can become a game changer for businesses as the E-Commerce industry is booming.

Red Stag Fulfillment can be your reliable 3PL provider because of its transparency in 3PL pricing and customized approach. Explore their services today to streamline your fulfillment process and improve your overall business performance!

FAQs

1. What factors influence 3PL costs?

Key factors include order volume, product size and weight, storage duration, shipping destinations, and additional kitting or custom packaging services.

2. What are Red Stag’s guarantees?

Red Stag offers a “Zero Shrinkage” guarantee, ensuring accurate inventory handling. They back their service with reliable order accuracy commitments.

3. Is Red Stag Fulfillment suitable for small businesses?

Yes, Red Stag’s tailored solutions and competitive pricing cater to businesses of all sizes, especially those with specialized product needs.

4. What technology does Red Stag Fulfillment use to optimize logistics?

Red Stag utilizes advanced warehouse management systems (WMS) and real-time inventory tracking to ensure accuracy, efficiency, and transparency.

5. Does Red Stag Fulfillment offer international shipping?

Yes, Red Stag provides international shipping solutions through partnerships with leading carriers, ensuring cost-effectiveness and reliability for global deliveries.

Further Reading

Shreya Nambiar

A creative content writer dedicated to producing engaging and insightful content about WooCommerce.

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