How Much Does 3PL Cost? Understanding the Key Factors that Impact Pricing

Managing logistics in-house can quickly become overwhelming if you’re running a growing business, especially as orders increase and customer expectations rise. That’s where third-party logistics (3PL) providers come in. But before you make the move, it’s natural to ask: how much does 3PL cost?

The answer isn’t always straightforward. The 3PL cost breakdown depends on a number of factors, including the type of services you need, the volume of goods you handle and how your products are stored and shipped.

In this blog, we’ll closely examine the key 3PL pricing factors and help you understand what you’re paying for. If you’re based in Melbourne and considering outsourcing logistics, this guide will give you a clearer picture of what to expect and how to budget wisely.

What Does 3PL Include?

A third-party logistics company manages part or all of your supply chain. This usually includes:

• Receiving and storing inventory
• Picking and packing orders
• Shipping to customers or retail stores
• Handling returns
• Providing technology for order tracking and inventory management

Some providers also offer value-added services like custom packaging, kitting, labelling and freight forwarding.

If you’re searching for 3PL Melbourne solutions, choosing a provider offering transparent pricing for only the services you need is important.

Breaking Down the Cost of 3PL Services

Let’s take a closer look at the typical 3PL cost breakdown:

Receiving Fees

This covers the cost of unloading, inspecting, and logging your stock into the warehouse system. It may be charged:

• Per pallet
• Per carton
• Per unit

Tip: Ask your provider how they define “receiving” and if extra charges apply for detailed inspections or damaged items.

Storage Fees

Storage is usually charged by:

• Pallet per week/month
• Shelf or bin space
• Cubic metres of space used

Costs can vary depending on whether your goods are stored in climate-controlled or high-security areas.

Pick and Pack Fees

This fee covers the labour to pick items from shelves and pack them for delivery. You might see:

• A base fee per order (e.g. $1.50 per order)
• Additional charges per item picked (e.g. $0.30 per item)

Some providers offer volume discounts as your order numbers increase.

Shipping Costs

Shipping is typically passed through from carriers (e.g. AusPost, StarTrack, TNT), with a small handling fee. You’ll pay based on:

• Size and weight of parcels
• Shipping speed (express vs standard)
• Destination (metro vs regional)

A reliable 3PL logistics Melbourne provider may have negotiated bulk rates with carriers, saving you money.

Account Management & Tech Fees

This includes:

• Access to inventory management software
• System integration (e.g. Shopify, WooCommerce)
• Ongoing support from account managers

Some providers include this in their overall pricing, while others charge a monthly tech or platform fee.

Custom or Value-Added Services

If you need extras like:

• Custom packaging
• Kitting/bundling
• Barcoding
• Product rework

What Affects 3PL Pricing the Most?

Several 3PL pricing factors can significantly influence your final cost.

Order Volume

More orders generally mean better rates. 3PL providers often offer volume-based discounts once you hit certain monthly order thresholds.

Product Size and Weight

Heavy, bulky or fragile items cost more to store and handle. If you sell compact items like cosmetics, your costs will be lower than someone selling large appliances.

Inventory Turnover

Products that sit in storage for long periods cost more. Fast-moving inventory helps reduce your storage fees.

Customisation Requirements

Expect higher labour costs if your products require special handling, personalised packaging, or multi-SKU bundling.

Technology Needs

Basic 3PL services often include software access, but custom integrations, reporting or API development may come at a premium.

Seasonality

Some providers increase prices during busy periods (e.g. Christmas, EOFY sales) due to higher labour demand and storage use.

Average 3PL Costs in Australia (What to Expect)

While prices vary based on service level and provider, here’s a rough guide to typical 3PL charges in Australia:

Remember that reputable 3PL Melbourne providers will offer tailored quotes based on your business needs, not just fixed packages.

Is 3PL Worth the Cost?

If you’re spending too much time managing orders or running out of space in your office or warehouse, outsourcing to a third party logistics company can save you time and money in the long run.

Key benefits include:

• Reduced need for warehouse staff
• Lower overheads (no need to rent storage space)
• Faster delivery times = happier customers
• Scalability during peak seasons
• Better shipping rates through bulk carrier deals

When you factor in the cost of doing it in-house, the value becomes clear, especially for growing businesses.

Questions to Ask Before Choosing a 3PL Provider

To make sure you’re getting value for your investment, ask these key questions:

• What’s included in your pricing? Are there any hidden fees?
• Do you charge extra for returns or special handling?
• Can you integrate with my eCommerce platform?
• Are there minimum order volumes or storage commitments?
• What support do I get if something goes wrong?

Final Thoughts: Budgeting Smarter for Your Logistics

So, how much does 3PL cost? The real answer is: it depends on what you need but the benefits often far outweigh the costs. If you’re looking for a future-ready, affordable 3PL logistics partner that doesn’t overcharge or complicate pricing, TLC Enterprise is here to help. At TLC Enterprise, we know that every dollar counts especially for small and mid-sized businesses. That’s why we offer:

• Competitive rates for storage, picking, and shipping
• Customised solutions based on your needs
• No lock-in contracts for seasonal support
• Local customer service and fast response times