Transitioning from in-house fulfillment to an outsourced model with a 3PL can feel like a big step – it’s basically like moving your home! According to IBISWorld data, there were almost 70,000 3PLs operating in 2025 just in the US alone. That’s a lot of options! And unless you’ve worked with a 3PL in the past or have previously been in the warehousing and logistics industry, it is difficult to know how to find the best fit for your business and what questions to ask. In this blog, Ware-Pak covers what you should consider when you’re looking for a 3PL, especially when moving from an in-house fulfillment model.

Starting with the basics that most people think about:

Volumes/Capacity – How many orders per day does the 3PL fulfill on average? How much space is available? How many current clients do they have, and out of those, how many are in the same e-commerce industry as your brand? Are there any order minimums needed for your account to stay active (per day, or per month)?

Shipping Capabilities – What shipping carriers are available to you? Who “owns” the accounts? Is shipping pre-paid for? Who pays shipping carriers directly, the fulfillment center, or the brand? Some 3PLs will cover shipping costs upfront as a service and re-bill them to you, but they don’t provide the actual shipping cost. This makes it impossible to know if all discounts are being applied, or if they might be using shipping as a profit center. Ask – how will I see shipping discounts applied on my invoice? Can brands use their own shipping accounts? Who chooses how each order ships? How often do carriers pick up shipments from the warehouse? Are smaller DTC shipments organized onto pallets for carrier pick-up, or are they thrown into gaylords or load bags? Are they hand-loaded onto a shipping truck? Ask the 3PL to walk you through their day-to-day shipping process.

Technology – How are orders processed and picked in the warehouse – are paper pick tickets being used, or has RF tech been implemented? RF allows for the best accuracy and visibility. What integrations exist with your current systems (ERP/webstore/Shopify/Amazon/other distributors)? How will you have visibility into your account? An online remote portal should be available at least to see completed orders. How are you notified of daily fulfillment activity, what reports are available? Can the inventory on your website be adjusted by integration with their systems? What technology advancements have been implemented in the last year, and what is scheduled to be implemented in the next 12 months? Continuous review and improvement allow for maximum success in any industry. Does this 3PL employ their own team of programmers and developers, or is this department contracted out?

Pricing Structure – Every 3PL prices differently – some charge a percentage of your sales, some have a more straight-forward activity-based model. You should be able to transparently see what you are paying for each invoice period. Ask to see a sample invoice from the 3PL. Is there a minimum spend or order number needed per month to stay active with this 3PL, is there a minimum monthly fee? Will long-term storage of any products affect your storage rates? Many fulfillment centers want products to move, not sit, because then they have more space available to sell to other brands. Slower-moving SKUs could end up costing you more. What other fees may exist, such as setup and on-boarding costs, administrative fees, customer service, hourly labor, programming, etc? Many of these types of fees exist with many 3PLs, but are not explained in an initial quote.

We’ve covered reviewing 3PL pricing, hidden costs of 3PL’s and current 3PL price trends in greater detail in one of our recent blogs. Download a 3PL Pricing Checklist to help with your review!

Understanding how the 3PLs you are reviewing will handle the above will get you most of the way to finding the best fit for your brand.

Below are aspects of fulfillment and some steps that brands might not have considered to include in their review:

Seasonal Scalability – Will your brand be prioritized during your busy season? How does your busy season compare to their other clients? It’s one thing for a 3PL to handle your normal average daily order volumes, but once your sales team ramps up, will they be able to attack the new volumes with the same level of expertise?

Error Accountability – How do they handle it when things don’t go according to plan (as seems to happen almost daily in the logistics industry)? Pick rates, stated SLAs and KPIs – how are these measured, and do you have visibility on your specific brand’s data? Does their tech have the ability to drill down into the employee who picked your order? What solutions are implemented when errors are identified?

Take a Tour – Ask if you can visit the 3PL and tour their warehouse and operations prior to making a decision. If they aren’t willing to meet you face-to-face and provide a look around their warehouse on pretty much any operating day, consider looking elsewhere. What do they have to hide? Does this 3PL allow customers to visit periodically, such as during audit season? Do they allow customers to pick up orders in person for nearby businesses?

Customer Service – What type of customer service can you expect to receive from this 3PL? Will you have a dedicated rep managing your account? If so, are they located in the same place as your inventory? Can you pick up the phone and call them? Many businesses in this post-pandemic era have gone completely remote or even outsourcing their customer support, and have eliminated phone support, meaning you wouldn’t be able to speak with someone on the phone during an urgent-need situation. Is there a ticket system? How will follow-ups be received when you request new services or reports, or have a concern about your account? Does this 3PL offer periodic account reviews with leadership to discuss success, growth, and scalability?

Client Mix & Brand Fit – This can sometimes be a bit of an awkward conversation, but it’s important to know how your brand measures up to the 3PL’s other clients. Will you be a “big fish” to them and one of their largest clients with the most volume, or will you be a small number among hundreds of clients? Each of these scenarios will bring its own challenges that you can then be more prepared to face by asking these questions. Most 3PLs will not provide you with a complete listing of clients, but will offer some references of current clients. Request at least 3 references of current brands being serviced by the 3PL, including at least one tenured client that has been with them for over 3 years to discuss the 3PLs partnership abilities, one client who has gone live within the last 3 months to give a reference about the on-boarding process, and one client in your same industry or selling similar products to see how they handle your specific business.

Prep Services – When Amazon announced they would be discontinuing their FBA Prep services in 2026 in the 3rd quarter of last year, many brands scrambled to find an efficient solution. You don’t want to sign a contract with a 3PL that can’t accurately prep your distributor shipments. Does this 3PL handle Amazon Prep? You will want to be specific about the requirements of your Amazon FBA orders so that the 3PL can evaluate their capabilities in servicing your account. Are they capable of completing other types of prep for other distributors? Take a look at your key accounts and any routing guides and shipping requirements, and share any necessary details to ensure the 3PL can accurately prep your larger distributor shipments.

At Ware-Pak, we aim to make the transition from in-house to outsourced fulfillment simple, strategic, and scalable. We partner with growing e-commerce brands to take fulfillment off of their plate, while keeping full visibility and control.

From receiving inventory to picking, packing, and shipping orders, our team handles day-to-day order fulfillment so that brands can focus on sales, marketing, and growth. As order volume increases, Ware-Pak scales with you. Flexible space, proven processes, and experienced staff ensure orders are handled accurately and efficiently, in every season.

Brands that transition to Ware-Pak gain more than just warehouse space and a 3PL team to pick and pack orders for them. They gain a true fulfillment partner to support growth with consistency, transparency, and over 63 years of success.

Whether you are outgrowing your current setup or you’re preparing to review your fulfillment operation for your next stage of growth, Ware-Pak can help make fulfillment one less thing you need to worry about.

Ready to scale smarter? Ware-Pak is ready to grow with you.

The post How to Choose a 3PL Fulfillment Partner: The Complete Guide for Growing Brands appeared first on Ware-Pak LLC.

Let’s look at the main storage methods most 3PLs use, the pricing structures behind them, and an emerging trend that many shippers should treat as a red flag: storage rates that appear fixed, but increase when SKUs slow down without clear thresholds upfront.

The #1 2026 Shift: Storage Is Becoming More “Behavior-Based”

Historically, the majority of 3PLs priced storage like rent, meaning if you occupied space for a certain amount of time, you paid for that space. But in 2026, more providers are tying storage economics to inventory behavior – how quickly items move, how much labor their fulfillment creates, and how long they sit untouched.

We see this in the recent normalization of long-term or “aged” storage penalties. As noted in the 2025 warehousing market report from The Fulfillment Advisor: “Nearly half of warehouses (48.6%) now charge long-term storage fees, up from just 23.33% in 2024.

That’s not automatically cause for concern. Warehouses do incur real costs when slow-moving inventory occupies prime space. The problem is when behavior-based pricing is introduced in a way that’s hard to forecast or easy to misunderstand.

Common Storage Methods 3PLs Use (and How They’re Typically Billed)

1) Per-Pallet Storage (the classic, easiest to audit method)

This is the most familiar model: storage is billed per pallet position for a set amount of time, often monthly.

Many industry guides still describe pallet-based storage as the standard. Per Warehousing and Fulfillment, “Pallet storage is, by far, the most frequently used warehouse storage methodology.” Typically, pallet storage costs are billed monthly.

Pros

• Simple to understand and reconcile (pallet count x storage rate)
• Works well for full case picking and predictable replenishment of bins
• Easy to forecast with fulfillment volume history

Cons

• If “pallet” isn’t clearly defined (standard vs oversized, per pallet location vs per pallet ID)
• If partial pallets are not consolidated and invoiced as full pallets
• If there are extra “pallet-in/pallet-out” or handling fees which are not clearly defined

This classic storage pricing method is favored by long-standing industry leaders like Ware-Pak, since its transparent, easy to understand and estimate, and works well to manage inventory for brands of all sizes. A consistent per pallet rate paired with clear definitions tends to be one of the most accountable ways to price storage because it’s easy to audit against warehouse counts and location reports. 

Per Cubic Foot (can be more precise, great for mixed-size product lines)

Instead of paying for storage per pallet location, you pay for the exact space that your products actually occupy.

This is increasingly popular for high-SKU, mixed-dimension inventories because you’re paying for space used, not the container it happens to sit in. Red Stag Fulfillment cites an “independent 3PL average” around $0.46 per cubic foot monthly based on a 2025 warehousing survey.

Pros

• Fairer pricing if pallets are consistently underfilled
• Can reduce costs for smaller items vs pallet pricing

Cons

• Requires accurate dimensioning and reporting, with some manual oversight
• Can be harder to audit unless the 3PL provides transparent measurement logic

Per Bin / Per Shelf / Per Location (most common in e-commerce fulfillment networks)

Some networks assign inventory to bin/shelf/pallet locations and bill by that “slot,” sometimes prorated daily. ShipBob, for example, describes storage as “calculated on a per-SKU, per-day basis” even if the fee is listed as a monthly charge.

Pros

• Ideal for low-quality, high-volume SKUs that will deplete significantly month-to-month
• Works well for piece-picking environments
• Can scale down if inventory shrinks

Cons

• Standardization is difficult to implement and track
• “Location assignment” rules can materially change cost (who decides what becomes a shelf vs pallet?)
• Forecasting can be tricky if the 3PL’s slotting decisions drive your invoice

Per Unit Storage (simple for some brands, risky for others)

Per-unit storage charges a fee per each individual unit held, no matter the number of SKUs in your product line or storage locations needed.

Pros

• Easy to understand on paper
• Useful when units are uniform in size and handling

Cons

• Can be overcharged for tiny items or undercharged for bulky items
• Incentivizes disputes about what counts as a “unit” (bundles, kits, multipacks)
• Can become expensive at scale if you have an extensive product line

Per Square Foot (not common in DTC fulfillment)

Square-foot pricing appears more in dedicated space arrangements or contract warehousing than in DTC fulfillment.

Pros

• Predictable if your product and volumes are stable
• Can make sense for floor-loaded inventory or goods that require unique storage solutions

Cons

• Doesn’t apply vertical utilization well because there is no consistent racking density
• Often paired with minimums and commitments

“Alternative” or Outdated Pricing Models You’ll Still See in 2026

Revenue share / percentage of sales

Some 3PLs tie fulfillment fees to the revenue from the sales of the products. SNT Global explains this model as “the 3PL takes a percentage of the revenue from each sale – for example, the 3PL charges 5% of the total order value for fulfillment and logistics.”

Why brands consider it

• Costs rise and fall with sales, which helps with cashflow planning

Why it’s less common

• 3PL cost drivers don’t perfectly track sales revenue (labor spikes, returns, seasonality)
• It can obscure where costs really come from (storage vs labor vs packaging)

Cost-plus

For many years, cost-plus pricing was the dominant model for 3PLs, and is still common in parts of the industry. As Inbound Logistics summarizes, “customers pay for labor and overhead, plus a fixed margin” in this model. 

This model is transparent, if the cost components are truly disclosed and auditable. However, it can feel unpredictable if productivity and staffing fluctuate. This structure also allows for complacency where poor processes can be missed, since efficiency is not a driving force like with an activity-based pricing model.

Some 3PLs will still use a cost-plus model to charge for certain commodities, such as packaging corrugate and the purchase of other bulk materials. 

Quiet Escalation 2026 Trend: Storage Fees for Slow-Moving SKUs

A 3PL advertises “storage at an established rate”. But there’s an unspoken (or under-explained) condition; if SKUs don’t maintain velocity, storage rates will increase via re-classification, penalties, or long-term fees.

In a healthy version of this model, the thresholds are explicit and the math is predictable. In the unhealthy version, brands are often left surprised at the fees incurred.

Amazon, which operates the largest e-commerce fulfillment network in the world in 2026, has standardized the aging process. They will add a surcharge to inventory that sits in their fulfillment network for as little as 181 days, and the fees increase to the longer the inventory ages. “The aged inventory surcharge (previously known as the long-term storage fee) is charged on inventory units stored… for 181 days or longer.”

That policy is very explicit: there’s a clock, threshold, and published logic. 

But some 3PL contracts emulate this concept without the clarity, using vague language such as: 

“subject to re-classification”

“based on utilization”

“based on client storage profile”

“slow-moving inventory may incur additional charges”

And in 2026, as long-tail SKU counts rise, more warehouses will try to protect prime pick locations using velocity slotting. According to Slot3D, velocity-based slotting is “a… strategy that organizes inventory based on its order frequency.” Faster-moving products are stored in easier to reach and more cost-efficient locations, while slower-moving items are placed farther away or in less desirable areas, such as on a higher rack needing a lift truck to reach for picking.

Operationally, this makes sense. Contractually, it becomes risky when those operational decisions change your storage costs without clear disclosure.

2026 Operational Trend: More High-Density Storage + Smarter Slotting

Beyond pricing, storage methods are changing too. Many warehouses are investing in higher-density storage systems and more dynamic slotting to handle extensive SKU counts more efficiently. AutoStore, for example, maximizes space efficiency with their cube storage system, an automated bin stacking solution for quick picking. This innovation “optimizes every inch of storage, allowing for quicker, automated retrieval and a smaller warehouse footprint.”

In short, operational optimization is accelerating in 2026, and new pricing models will surely follow. The winners will be the providers who can improve and exhibit consistent efficiency without turning storage into a mysterious equation. Brands need transparency.

Brands Prioritize Predictability Over “Low Rates” in 2026

In a world of aging surcharges, velocity re-slotting, and increasingly complex SKU mixes, a “cheap” storage rate is meaningless if it can change unexpectedly. The smartest brands in 2026 will choose 3PL partners whose storage pricing is:

• clearly defined
• easy to understand and audit
• tied to reports the client can verify
• free of surprise re-classifications and vague escalators

That doesn’t require the lowest number on a rate card, but clarity and consistency.

What “Transparent Storage” Looks Like (and How to Ask for It)

Whether you choose per pallet, per cubic foot, per unit, or bin-based storage, the best 3PL agreements in 2026 share one trait: the invoice can be reconciled to observable and recordable warehouse facts.

You want a 3PL that can:

• define storage units clearly
• provide consistent measurement rules
• separate storage from handling and special projects
• disclose surcharges and triggers upfront

Download a Free Tool to Help You Estimate 3PL Storage Costs

To assist in your 3PL review, Ware-Pak has prepared a download that provides you with all of the questions you need to ask to ensure you choose the provider that is best for your business’s storage needs. Use this to determine how each 3PL you’re considering actually charges for storage, and how their pricing compares to the competition.

CLICK HERE TO DOWNLOAD NOW!

The post 3PL Storage Cost Trends in 2026: Pricing Models, Storage Methods, and the Push for Transparency appeared first on Ware-Pak LLC.

In 2025, warehousing and fulfillment pricing has become more complex, more restrictive, and harder to forecast, especially for ecommerce brands managing diverse inventories.

Industry data and expert analysis confirm that many of the most expensive 3PL fees are easy to overlook unless you ask the right questions.

Warehousing Costs Are Shifting Beneath the Surface

According to the 2025 Warehousing and Fulfillment Costs & Pricing Survey, which analyzes responses from over 600 warehouses, base fulfillment rates have remained relatively stable. However, costs are increasingly being pushed into minimums, storage penalties, and receiving methods.

As the report explains, it tracks not just pricing, but how contracts and customer-facing fees change year-over-year.

This aligns with broader industry commentary. As 3PL Center notes:

“Hidden fees, vague billing lines, and surprise surcharges are some of the most common complaints businesses have about their 3PL partners.” – 3PL Center, “3PL Transparency”

1. Rising Minimum Monthly Volume and Spend Requirements

One of the most impactful changes seen throughout 2025 is the rise in minimum monthly volume and spend requirements.

The survey reports that the average monthly minimum increased from $337.50 in 2024 to $517 in 2025. For businesses with seasonal volume, new product launches, or uneven demand, minimums can quietly turn fulfillment into a fixed overhead cost.

Fulfillment pricing guides consistently warn that minimums are often under-emphasized during sales discussions:

“Minimum monthly fees are one of the most overlooked 3PL costs – and one of the most damaging when volume fluctuates.” – Forthmatch, “Ultimate Guide to 3PL Pricing & Hidden Fees”

Key questions to ask before commitment:
What happens if our order volume drops below the minimum?

2. Long-Term Storage Fees Are Becoming Standard

Long-term storage fees were once an exception. They are now increasingly normalized.

The 2025 survey shows that 48.6% of warehouses charge long-term storage fees, up from 23.33% the previous year. These fees can apply after inventory sits for a defined period and may stack on top of standard storage charges.

Industry analysts frequently flag this as a hidden risk for brands and slow-moving or backlist inventory:

“Long-term storage premiums are among the most severe hidden costs for ecommerce sellers. US 3PLs charge 1.5-3x standard rates for inventory >30/60/90 days, aimed at turnover but devastating seasonal sellers.” – WinsBS Logistics Insights

3. Receiving Fees Depend on How Inventory Is Counted

Receiving is one of the least standardized components of 3PL pricing.

Survey data shows:

• Cost of receiving per pallet decreased
• Cost of receiving per container increased sharply (from $350 to $500)
• Cost of receiving per SKU increased

3PLs may bill for receiving by pallet, carton, SKU, hour, container, or some combination of any of these. This means that the same inbound shipment can incur very different costs depending on how the inventory is received.

This variability is frequently cited as a source of post-onboarding surprises in fulfillment audits.

4. Contract Flexibility Is Declining

Pricing changes aren’t limited to line items; contract terms are tightening as well.

The survey shows:

• Month-to-month agreements are becoming far less common
• 77% of warehouses now increase pricing on a regular basis
• Minimum commitments are more frequently enforced

For growing brands, this can mean being locked into a pricing model that no longer fits as business needs change.

The Real Issue Isn’t Fees – It’s Transparency

Warehousing is capital-intensive and labor-driven. Fees themselves aren’t inherently unfair.

The real issue is transparency:

• Fees that stack without explanation
• Pricing rules that change after onboarding
• Costs that can’t be modeled in advance
• Invoices that require investigation to understand

As Cleverence explains in its analysis of transparent 3PL pricing:

“Transparent pricing reduces friction. When a client… immediately understands what storage, handling, and value-added services will cost, you unlock faster onboarding and fewer month-end disputes.”

How Ware-Pak Approaches 3PL Pricing Differently

At Ware-Pak, we work with publishers, associations, and ecommerce brands that value predictability and long-term partnerships.

Our pricing philosophy is built around:

• Clear activity-based pricing with a transparent price schedule
• Upfront disclosure of minimums, storage rules, and exceptions
• Predictable B2C fulfillment pricing
• No surprise stacking of storage, receiving, or return fees

We believe fulfillment pricing should be something you can confidently estimate before your first order ships, not reverse-engineer after invoices arrive.

Final Thoughts

The 3PL landscape of 2025 has been defined by rising costs, tighter contracts, and increasingly complex pricing models.

Transparency isn’t just a nice to have, it’s a necessary competitive advantage.

Ware-Pak’s commitment to clear, predictable pricing helps clients scale fulfillment operations without unpleasant surprises and build partnerships that last.

Download a Free 3PL Pricing Review Checklist

Every 3PL invoices differently, and most 3PL pricing issues don’t arise from headline pick-and-pack rates, but from unclear minimums, storage rules, receiving methods, and contract terms. Every brand should be doing due diligence in making sure they understand how each 3PL will invoice them for fulfillment. To assist with your review process, Ware-Pak has prepared a 3PL Pricing Review Checklist that is available for download.

CLICK HERE TO DOWNLOAD NOW!

The post Hidden 3PL Fees to Watch for in 2026: What Shippers Need to Know Before Choosing a Fulfillment Partner appeared first on Ware-Pak LLC.

For many small and mid-sized brands, that’s a significant leap. But rather than seeing it as a setback, it can be an opportunity to re-evaluate whether your fulfillment provider is still the right fit for your brand’s needs.

Why Does Outgrowing Happen?

It’s important to remember that outgrowing a fulfillment partner is not always a negative reflection on either side. There are several reasons this happens:

In short: just as brands evolve, so do 3PLs.

Best Practices for Ending a Fulfillment Partnership

If you find yourself in the position of needing to transition away from your current partner, it’s important to do so thoughtfully. A clean, respectful exit sets both parties up for success.

Here are a few best practices:

• Communicate directly. Avoid relying on mass emails or abrupt notices. Open dialogue helps maintain trust.
• Provide reasonable notice. Creation of a transition timeline is helpful for both sides and gives each side time to prepare for a successful parting of ways.
• Ensure data integrity. Accurate inventory counts, order history, and systems integrations should be shared to smooth the handoff. The brand’s new 3PL provider will appreciate a well-packed and accurate move-out shipment.
• Leave the door open. Today’s small customer could be tomorrow’s large one. Ending on good terms keeps future opportunities alive.
• Keep it professional and business-as-usual. Parting ways in any long-term relationship can be difficult. Don’t let your emotions get in the way of business, and keep to your daily professional standards.

What This Means for Brands Today

If your business’s monthly fulfillment spend falls below Flexport’s new $5,000 minimum, you’re not alone. Many growing brands may feel left behind by these shifts. But there is good news: there are fulfillment partners who specialize in supporting businesses at your stage. There are over 72,000 3PLs in the U.S., with more popping up every day!

Not all 3PLs are created equal. You need to ask yourself, where is my business right now, and what do I want my business to look like in the future?

Matt Kurtis, VP of Ware-Pak, The Future of E-Commerce Fulfillment

The key is finding a partner that aligns with your size, growth plans, and customer experience goals – not just today, but in the years ahead.

How Ware-Pak Can Help

At Ware-Pak, we understand the challenges of scaling a brand. For over 62 years, we’ve partnered with companies of all sizes to provide flexible, reliable fulfillment solutions. Our approach is built on:

• Custom, tailored solutions that fit your business stage where it is currently.
• Personal service from a team that is experienced in fulfillment and knows how to service your account.
• Scalable support so we can grow with you, without unnecessary costs.

If you’re feeling unsupported and concerned about meeting new minimums elsewhere, reach out to Ware-Pak for a fulfillment quote today.

Change is inevitable, but disruption doesn’t have to be. With the right partner, transitions can be smooth, supportive, and even open new opportunities for growth.

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