What Does a 3PL Cost in the UK? A Pricing Breakdown for Growing Brands
Every 3PL structures quotes differently, which makes fulfilment pricing comparisons frustrating. One provider charges per pick, another bundles picks into a flat rate, a third bills storage by the pallet and a fourth by the cubic metre. Put two quotes side by side and they can look nothing alike, even for the same volume.
Third-party logistics (3PL) pricing in the UK is built from five to seven cost components, of which pick and pack fees and storage charges account for most of a brand’s monthly bill. A 3PL does more than pick and pack, though: it receives and checks your stock in, stores it, picks and packs each order, supplies the packaging, handles returns and arranges delivery and each of those becomes a line on the quote.
This article breaks down how much a 3PL costs in the UK, what pushes those numbers up or down and what a premium operation adds that a commodity 3PL doesn’t. Any figures stated are benchmarks to plan against, not a substitute for a quote run against your real order data.
UK 3PL pricing benchmarks
For brands processing between 500 and 5000 orders per month with standard packaging requirements, an all-in cost of £1 to £3 per order serves as a baseline industry benchmark. 2026 UK market benchmark ranges across primary UK fulfilment cost categories break down as follows:
| Cost category | Typical UK market range | Billing mechanism |
|---|---|---|
| Goods-in (intake) | £10-£30 | Per pallet/container received |
| Storage fees | £10-£30 | Per pallet per month |
| Pick and pack | £0.45-£2.60+ | Base order fee + per item pick rate per order |
| Packaging | £0.10-£0.50 (standard) Up to £5 (branded) | Per order, by material specification |
| Returns processing | £0.50-£2.00 per item | Per item returned |
| Outbound shipping | Direct carrier rates (DPD, Royal Mail, DHL) | Per parcel (weight/zone dependent) |
Note: As a premium 3PL, specialising in omnichannel retail and premium logistics, International Logistics Group (ILG) operates in the mid-to-upper range of standard market ranges. Higher rate cards reflect specialised warehouse infrastructure, dedicated account management and rigorous operational SLAs.
What moves your cost up or down
Six variables shift the total more than any headline rate:
- Order volume. Higher throughput creates operational efficiency with per-order costs falling as you scale.
- SKU count. More SKUs mean more storage locations and more complex picking.
- Product size and weight. Bulky or heavy items cost more to store and to ship
- Packaging specification. A plain poly bag and a branded box with tissue and a gift card aren’t the same line item
- Channel mix. DTC through Shopify, marketplace and retail orders have different pick profiles and labelling requirements
- Peak throughput. If you need guaranteed capacity in Q4, that commitment carries a cost
The four commercial 3PL pricing models
- Activity-based. Pay purely for explicit actions (pick, pack, storage and returns) as it happens. This suits brands with variable or seasonal volume that want costs to track activity.
- Fixed / flat-rate pricing. A set fee per order covering pick, pack and standard packaging. It’s predictable and easy to budget but can be less efficient if your order profile varies widely.
- Cost-plus agreements. The 3PL passes through its costs and adds a transparent margin. This suits larger, complex operations that want visibility into the underlying numbers.
- Hybrid commercial model. A baseline fee plus activity charges for anything outside the standard profile. It’s the most common model for growing brands, because it balances predictability with flexibility.
Hidden costs: 7 questions to ask before signing
Before signing a logistics contract, present these seven operational questions to prospective 3PLs to clarify contract terms and fee structures upfront:
- Are there long-term storage penalties for slow-moving stock?
- Is there a minimum monthly charge and what happens in a quiet month?
- What are your peak surcharges and when do they apply?
- Are there floor-loaded (unpalletised) container handling fees at goods-in?
- Is there a setup or integration fee to get started?
- Is there a fee to access the warehouse management system or client portal?
- What do you charge for special handling of fragile or high-value items?
EU fulfilment costs post-Brexit
Selling into the EU from the UK, you face two broad options, each with its own distinct cost structure:
Direct UK cross-border shipping: Since the EU removed its €150 duty exemption on 1 July 2026, customs duty is charged on each shipped order from the UK (a €3-per-line charge on consignments up to €150) on top of VAT, admin and longer delivery times.
Local EU stock holding: Holding stock in a European warehouse introduces a secondary storage footprint but unlocks in-region delivery speeds and simpler customs procedures. Holding dedicated EU stock even at lower order volumes now becomes cost-effective much earlier in a brand’s growth journey.
Regulatory compliance (GPSR): The EU General Product Safety Regulation (GPSR) has been in force since December 2024 and most consumer products now need an EU-based Responsible Person, typically a few hundred euros a year depending on provider and product range. Charged as an annual fee per SKU range, for a brand with a wide range, that’s a real line in the European budget.
ILG supports EU fulfilment from Poland, where it operates a flagship 450,000 sq ft facility to streamline cross-border expansion.
Evaluating and normalising 3PL quotes
- Gather 90 days of historical data – order volumes, average items per order, SKU count, average weight, returns rate and peak profile. Estimates produce estimates, so be as accurate as possible.
- Request fully modelled monthly projections against that historical data, rather than just sending a rate card.
- Request an anonymised sample invoice from a current client with a similar order profile, because a rate card won’t show you how a provider actually bills.
- Confirm whether quotes include VAT and factor in recurring WMS software charges, baseline minimum charges and setup fees.
- Calculate the true effectiveness cost per order by dividing each modelled monthly total by your order volume for a true cost per order and compare that, not the headline pick rate.
Frequently Asked Cost Questions
Is a 3PL cheaper than in-house fulfilment?
For most growing brands, a 3PL converts the fixed cost of warehousing, staff and systems into a variable per-order cost, which is usually cheaper until volumes are high and predictable enough to justify running fulfilment in-house.
How do I compare two 3PL quotes fairly?
To compare quotes fairly, request a total modelled monthly invoice using three months of your real order and SKU data. Account for minimum spend commitments, software fees and VAT, then divide the total projected monthly bill by total order count to identify the true cost per order.
What does it cost to fulfil EU orders from the UK after Brexit?
You either ship per order from the UK (customs admin and possible duty each time) or hold EU stock (a second storage cost but in-region delivery, such as ILG’s Wroclaw facility). GPSR compliance also requires an EU-based Responsible Person, charged annually per SKU.
Why does a premium 3PL cost more than a standard one?
Branded packaging, gift messaging, condition-graded returns, a named account manager and a contractual accuracy SLA all add cost. A brand shipping in a branded box with a gift card pays more per order than one shipping in a poly bag.
What hidden charges should I ask about before signing a 3PL contract?
Ask about long-term storage penalties, minimum monthly charges, peak surcharges, setup or integration fees, WMS access fees and special handling for fragile items. These are legitimate charges, but they’re often absent from the headline rate.
How are 3PL storage fees calculated?
3PL storage in the UK is usually charged per pallet per month, typically £10 to £30, though some providers charge per shelf, bin or cubic metre. The rate varies with location, access frequency and any minimum commitment.
What is a typical pick and pack rate in the UK
Pick and pack rates in the UK generally range from £0.45 per order for high-volume, single-item orders to £2.60 or more for complex orders with multiple SKUs or specialised packaging. Pricing is typically structured as a base order fee plus a smaller charge per additional item picked.
How much does a 3PL cost in the UK?
An all-in benchmark cost for UK 3PL fulfilment typically ranges between £1 and £3 per order for standard products. The total depends on your volume, SKU count, packaging and shipping profile, with pick and pack and storage making up most of the bill.
Next step
Pricing is only half the decision. Once you know what a fair quote looks like, the next question is what else separates a good 3PL from an average one, so it’s worth reading How to Choose a 3PL in the UK. For a like-for-like view of ILG’s own pricing, see the fulfilment pricing page, or explore ILG’s e-commerce fulfilment service.
If price isn’t the only friction point, check the other signs it might be time to switch 3PL.
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Written by Danny Ellard
Joined ILG in 2020 at a time of intensive growth and progressed quickly to lead our UK Sales Team. As well as shaping ILG’s business development strategy for the UK, Danny is hard at work winning new business, tackling ambitious growth targets and strengthening relationships with customers, both new and established. Danny takes a super-collaborative approach to building our forward-thinking fulfilment proposition by engaging closely with ILG’s Leadership, Operations and Marketing teams.
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