Moving to a 3PL: the 14-day onboarding checklist
Onboarding slips because of missing barcodes and unmeasured products, not because of the warehouse. Everything to have ready before your stock leaves the building.
Pricing
Quoted 85p a pick and billed 40% more? The gap is almost never dishonesty. It is the charges that live in the contract rather than the price list.
Every seller who has moved 3PL twice tells the same story. The rate card looked competitive, the first invoice looked nothing like it, and by the time anyone worked out why, the stock was already on the shelf and moving was going to cost more than staying.
Almost none of this is fraud. Fulfilment has real costs that do not fit neatly into a per-order number, and every provider has to recover them somewhere. The problem is that the recovery lines are usually in the terms rather than on the pricing page, so two quotes that look 20% apart can be identical — or the cheaper one can be 40% more expensive.
The single most useful question you can ask a 3PL: “Send me a worked invoice for a month at my volume, with every line you would actually bill.” A provider who can produce one in a day is a provider whose pricing is real.
Someone has to unload the pallet, count it, check it against your ASN, resolve the discrepancy when the count is wrong, and put it away. That is real labour, and most 3PLs charge for it — per pallet, per carton, per unit, or per hour of the labour it took.
What makes this line unpredictable is that you largely control its size. Mixed cartons cost more to receive than single-SKU cartons. Unbarcoded units cost more than barcoded ones because someone has to label every piece. A delivery that arrives without notice costs more than a booked one.
This is the one that catches growing sellers hardest. Storage is usually billed on the space your stock occupies, not the units it contains — per shelf, per bin, per pallet, per cubic metre. A slow-moving SKU on a half-empty pallet is billed the same as a full one.
Two follow-on charges hide behind it. Minimum billing periods: if storage is billed monthly, stock that arrives on the 28th may be billed for the whole month. And long-term storage surcharges: some providers escalate the rate on anything sitting past 90 or 180 days, which is exactly the stock you are least likely to be watching.
For reference, our own storage starts at £5 per shelf per month, published on the rate card. What matters is not the number but what a “shelf” is — always get the dimensions in writing before you compare two storage quotes.
The headline pick-and-pack rate normally covers the labour of picking and packing. It often does not cover what the order is packed in. Boxes, mailing bags, void fill, tape, fragile wrap, branded tissue and inserts are consumables, and consumables get billed.
Three things to pin down. First, whether packaging is charged at cost, at cost-plus, or at a fixed per-order rate. Second, whether you can supply your own — and whether the 3PL charges storage on your packaging stock if you do. Third, what happens when an order needs a bigger box than the standard: is there an oversize packing rate, and who decides when it applies?
Branded packaging is where this gets expensive quietly. Custom boxes carry minimum order quantities, they occupy storage you pay for, and if your design changes you may be storing dead stock. Worth doing — but budget the storage, not just the print.
Almost every rate card is quoted on a single-item order. Real baskets are not single-item. The second and subsequent items on an order are usually charged separately, and the gap between providers on that additional-item rate is often wider than the gap on the headline rate.
The maths matters more than it looks. If your average order contains 2.4 items, the additional-item rate applies to well over half your picks. A provider 5p cheaper on the first pick and 10p dearer on each additional one is more expensive for you, not less — and their pricing page will still look better.
Work out your real average. Export twelve months of orders, divide total items by total orders. That one number decides which quote is actually cheaper, and most sellers have never calculated it.
Minimum monthly charges are the quiet killer for sellers with seasonal volume. A £500 monthly minimum is invisible in November and painful in February. If your business has a slow quarter, model the slow quarter, not the average.
Peak surcharges are legitimate — labour genuinely costs more in November and December — but they should be a published number, not a discretionary one. Ours is 20p per order in November and December, and it appears on every quote we send. A 3PL that will not put a figure on its peak surcharge in advance is asking you to sign a blank cheque for your two most important months.
Rate reviews should have a date and a notice period. We review each April and tell clients in advance. “Rates may be amended from time to time” with no notice period is not a pricing term, it is an option they hold over you.
Exit costs are the ones nobody asks about at signature and everybody asks about at 2am eighteen months later. Find out now: what is the notice period, what does it cost per unit or per pallet to have your stock picked, packed onto pallets and released, and — the important one — is there a lien clause that lets them hold your stock against an unpaid invoice? Most 3PL contracts have one, including ours. That is normal and reasonable. What is not reasonable is finding out about it during a dispute.
Do not compare rate cards. Compare total monthly cost, modelled on your own twelve months of order data, in three scenarios: your slowest month, your average month, and your peak month. Send every provider the same five inputs — orders per month, average items per order, number of SKUs, storage footprint, and return rate — and ask each of them to produce a worked invoice.
The provider whose number comes back highest is not necessarily the expensive one. Sometimes it is just the honest one.
We publish our complete rate card, including a calculator that models your monthly cost before you speak to anyone. If you find a charge in our terms that is not on that page, tell us — that is a mistake on our side and we will fix it.
Keep reading
Onboarding slips because of missing barcodes and unmeasured products, not because of the warehouse. Everything to have ready before your stock leaves the building.
By the time Black Friday traffic arrives, every decision that matters has already been made. What to lock down while it is still quiet.
Send us five details and we send back a fully itemised quote against our published rate card — within one working day, with no sales call unless you ask for one.
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