Pick and Pack Fee

A pick and pack fee is the charge assessed by a fulfillment center or 3PL warehouse for retrieving an item from its storage location (the pick) and packaging it for shipment to the end customer (the pack). This fee covers the labor, materials, and overhead involved in turning a stored product into a shipped order. For e-commerce sellers using third-party fulfillment, the pick and pack fee is typically the largest variable cost in the fulfillment process, directly affecting per-order profitability.

What the Fee Covers

The pick portion includes a warehouse worker walking or driving to the product’s bin or shelf location, scanning the barcode to confirm the correct item, and retrieving the right quantity. In a well-organized warehouse, a single-item pick takes 30 to 90 seconds. Multi-item orders take longer because the picker must visit multiple locations.

The pack portion includes selecting the appropriate box or mailer, placing the product inside with any required dunnage (bubble wrap, air pillows, packing paper), inserting a packing slip or marketing insert, sealing the box, and applying the shipping label. Packing a standard single-item order takes 1 to 3 minutes depending on the product size and packaging requirements.

Some 3PLs bundle the pick and pack into a single fee. Others break it into separate line items, charging a per-order pick fee plus a per-item fee for each additional unit in the order. Materials (boxes, tape, dunnage) may be included in the fee or billed separately.

Typical Pricing

Pick and pack fees at 3PL warehouses typically range from $2.50 to $5.00 for the first item in an order, with $0.50 to $1.50 for each additional item. These rates vary based on several factors:

Product size and weight. Picking and packing a small, lightweight item like a phone case costs less than handling a 30-pound exercise set that requires a larger box and more dunnage.

Special handling. Fragile items, temperature-sensitive products, or items requiring specific packaging (gift wrapping, branded tissue paper, custom inserts) command higher fees.

Volume. Sellers processing 5,000 or more orders per month can negotiate rates 20% to 40% below standard pricing. High-volume accounts are attractive to 3PLs because they provide consistent labor utilization.

Location. Warehouses in high-cost labor markets (Southern California, New Jersey) typically charge more than those in lower-cost areas (the Midwest, the Southeast).

Amazon FBA Pick and Pack Equivalent

Amazon does not break out a separate pick and pack fee. Instead, it charges an FBA fulfillment fee that bundles picking, packing, shipping, and customer service into a single per-unit charge. For a standard-size item weighing 8 ounces, the FBA fulfillment fee is approximately $3.22 (as of 2024 rates). This fee also includes delivery to the customer, which a 3PL pick and pack fee does not. When comparing 3PL costs to FBA costs, sellers must add outbound shipping charges to the 3PL’s pick and pack fee to get an accurate comparison.

Reducing Pick and Pack Costs

Sellers can lower their per-order fulfillment costs through several approaches. Standardizing packaging across SKUs reduces the time packers spend selecting materials. Pre-kitting frequently ordered combinations (bundling items A and B together in one package during receiving) eliminates multi-pick operations at order time. Designing products with packaging that ships in its own box (ship-in-own-container, or SIOC) removes the need for an outer carton entirely.

Batch processing, where orders are grouped and picked in waves rather than individually, improves picker efficiency. A picker who walks a single path through the warehouse collecting items for 20 orders travels less distance per order than one who walks a separate path for each order. Most 3PLs use wave picking or zone picking strategies to optimize this, and their fees reflect the efficiency of their process.

For sellers evaluating 3PL providers, the pick and pack fee should be assessed alongside storage fees, receiving fees, and outbound shipping rates. A provider with a low pick and pack fee but high storage charges may cost more overall than one with moderate fees across all categories.