Storage is only one part of the bill. Understand receiving, pick fees, packaging, freight and minimums so you can compare quotes against the way your business actually operates.
Two 3PL quotes arrive in your inbox. One has cheaper pallet storage and a lower pick-and-pack rate. Easy decision? Only if everything else is equal. A cheaper pick fee can lose its advantage once additional items, packaging, monthly minimums and freight enter the picture.
To compare 3PL quotes properly, ask every provider to price the same stock, orders, delivery destinations and service requirements. Then compare the expected total for a normal month, a quiet month and a busy month. That gives you a much better view of 3PL pricing in Australia than lining up a few advertised “from” rates.
Not every extra fee is a hidden cost. Unpacking a badly loaded container or relabelling cartons takes real work. The problem is a charge you could not reasonably predict because its trigger, rate or scope was never made clear.
The quick answer: compare the complete delivered cost, the rules behind each charge and the service you receive. A blank line on a quote means “clarify”, not “free”.
1. Give every provider the same job to price
A quote is built on assumptions. If one warehouse expects full pallets of a single product while another expects mixed cartons requiring unit counts, their receiving prices are not directly comparable.
Prepare one brief and send it to every shortlisted provider. Use recent operating data where possible, with forecasts clearly labelled. Include:
- Inventory: active SKUs, product and carton dimensions, weights, normal and peak pallet positions, and any batch, expiry or special handling requirements.
- Inbound deliveries: pallets or containers per month, loose-loaded versus palletised stock, cartons per delivery, SKU mix, barcode quality and packing-list availability.
- Orders: monthly order volumes, units and distinct SKU lines per order, plus the split between individual parcels, wholesale cartons and pallet dispatches.
- Packaging: mailer or carton sizes, protective materials, inserts, branded packaging and any assembly work.
- Delivery profile: a representative postcode mix, packed dimensions and weights, residential versus commercial addresses and required delivery services.
- Operating needs: sales channels, integrations, returns volume, cut-off times, promotions and seasonal peaks.
For example, “1,000 orders per month” is incomplete. A thousand single-item satchel orders are a different job from a thousand three-item orders packed into boxes with tissue paper and a promotional insert.
Ask for a rate card, written inclusions and exclusions, and a sample invoice based on your brief. If an input is unknown, request a stated allowance or a range with a clear assumption. An unexplained “TBC” should not disappear from your comparison total.
“Please price the attached operating profile and show every recurring, usage-based and conditional charge, including which charges count towards any minimum.”
Keep all quotes on the same currency and tax basis. This guide’s worked examples use Australian dollars excluding GST; they are invented illustrations, not market benchmarks or MCS rates.
2. Follow the costs from receiving to dispatch
Inbound fees: what does “received” actually include?
Check whether the inbound price covers unloading, checking against the delivery paperwork, scanning, recording discrepancies and putting stock away. A charge for unloading a pallet may not include counting every unit on it.
Ask how mixed-SKU pallets, missing barcodes, damaged cartons and unexpected deliveries are treated. If labour is charged hourly, establish the minimum booking, billing increments, number of workers and whether equipment is additional. One hour for a two-person team can mean two labour-hours.
For container imports, separate transport to the warehouse, container unpacking, sorting, pallet supply, wrapping, receiving and put-away. Confirm who arranges the empty-container return and who handles waiting or delay charges. The warehouse may not control every cost, but responsibility should be clear before the container arrives.
Storage: a pallet rate needs a definition
A price per pallet is incomplete without dimensions, permitted height and weight, and billing frequency. Ask whether oversized or non-stackable stock occupies more than one chargeable position, and whether picking bins are charged separately from reserve pallet storage.
Also check when occupancy is measured: daily, at a weekly snapshot, at the maximum during the period, or another agreed method. Will a part-week be charged as a full week? Are partly emptied pallets consolidated, and is that work chargeable?
For an average-month budget, weekly charges multiplied by 52 and divided by 12 give a better annualised comparison than multiplying by four. Your actual invoice should still follow the agreed billing calendar and occupancy rules.
Pick fees: first item, extra unit or extra SKU?
“$2.50 per order” might cover the first item, several items or order administration only. Confirm whether packing labour, the dispatch label and the first pick are included.
Then define an additional pick. Is it each extra physical unit, each different SKU line, a carton or a pallet? An order containing three identical bottles could be one SKU line but three units. Ask the provider to price that order and another containing three different products.
Also check replenishment from reserve stock to the picking area, split shipments, backorders and orders cancelled after picking begins. For wholesale dispatches, ask whether full cartons use a carton rate or individual-unit picks.
Packaging: “pack” is not always “packaging”
Separate labour from materials. Confirm which mailers, cartons, tape, labels and protective fill are included, if any. Ask for the cost of your actual packaging mix, rather than assuming every order fits the cheapest satchel.
Customer-supplied packaging can still require storage and handling. Branded boxes, gift notes, tissue wrapping and inserts may add labour. Where packaging is described as standard, request its size and specification so you can test whether your products qualify.
The cheapest line on the rate card does not necessarily produce the cheapest invoice.
3. Unpack minimums, account fees and exceptions
Monthly minimums: identify the charges that count
A minimum monthly spend can apply to the entire account or only selected services. That distinction matters most when orders slow down.
For a real Australian example, eFillShip’s published pricing separates its pick-and-pack minimum from storage, freight, packaging, software, receiving and other charges. Those other services do not contribute towards that minimum. This illustrates why you must check the minimum’s scope rather than assume it covers the whole bill.
Suppose your contract has a $500 fulfilment minimum and eligible pick-and-pack charges total $320. The top-up is $180. You pay $500 for that category, plus services outside it. You would not add another $500 to the $320 unless the agreement instead specifies a separate fixed fee.
Minimum top-up = the greater of $0 or (minimum − eligible charges).
Add that top-up to the other calculated charges once. Confirm whether a minimum is a spending floor, a separate retainer or a different arrangement.
Check whether minimums apply per account, warehouse, channel or service. Ask when they start, how partial months work and whether seasonal volume reductions affect your rate tier.
Account, software and integration fees
Request separate figures for onboarding, platform access, account management and integrations. Find out whether additional stores, users, reports or support requests attract charges.
Keep one-off implementation costs separate from the recurring monthly estimate, then include them in your first-year comparison. A waived setup fee is useful, but it should not distract from twelve months of higher operating charges.
Rework, returns and other exceptions
Rework includes tasks such as replacing labels, assembling kits, inspecting damaged stock or repacking goods to meet a retailer’s requirements. Ask for the hourly or per-unit rate, minimum job charge, materials cost and approval process.
Agree a spending threshold above which the warehouse needs written approval, with a practical procedure for urgent issues. Request supporting job records or photos where relevant. That makes exceptional work explainable when the invoice arrives.
Returns deserve their own breakdown: receipt, inspection, grading, repacking, restocking, disposal and return freight can be separate steps. Other questions to raise include urgent dispatch, weekend work, stocktakes, manual order entry, retail booking requirements, long-term storage and removal of stock when the relationship ends.
Finally, distinguish work caused by your supplier’s non-compliant delivery from work needed to correct the warehouse’s own error. Agree who pays for corrective handling and replacement freight, and how incidents are investigated.
4. Compare freight using your real delivery mix
Freight can outweigh a modest saving on storage or picking. A sharp Sydney metro price tells you little about the cost of sending bulky parcels to regional Queensland or Western Australia.
Give each provider the same anonymised shipment sample and request pricing by service and destination. Include packed dimensions, weight, postcode, number of parcels and any delivery-access requirements. Avoid comparing a standard service with an express service simply because both are labelled “shipping”.
Australia Post’s business size and weight guidance explains that relevant parcels outside its eligible flat-rate packaging arrangements are assessed using actual or cubic weight, whichever is greater. Check the conditions of the service being quoted. A lightweight product in an unnecessarily large box can cost more to transport than its scale weight suggests.
Ask whether the freight estimate includes applicable fuel, oversize, manual handling, peak-period, redelivery and address-correction charges. For pallet freight, also check tail-lift requirements, waiting time and failed delivery arrangements.
StarTrack publishes fuel and additional-charge information separately from its service rates. This is a useful reminder to date your freight assumptions and identify which surcharges can change during the contract.
Clarify whether the 3PL passes through carrier charges, adds a margin or charges a separate freight administration fee. If you use your own carrier account, ask whether booking, manifesting and handover fees still apply.
5. Test both quotes against the same month
Here is a simplified comparison for an eCommerce business. Every rate below is hypothetical. Neither quote represents MCS Logistics Group or another provider.
The business dispatches 1,000 orders, each containing exactly two units, in one parcel per order. Both providers include one unit in the base fee and bill the second as an additional pick. The model uses 20 stored pallet positions for an annualised average month of 52/12 weeks, 10 inbound pallets, identical packaging specifications and the same delivery-service and postcode mix.
Quote A has a $500 pick-and-pack minimum; Quote B has a $400 minimum. Both are exceeded in this normal month. Receiving includes checking and put-away; pick fees include packing labour. Freight estimates include the assumed applicable surcharges. Other assumptions are stated below.
Illustrative normal month · AUD, excluding GST
Cost item
Quote A
Quote B
Storage: 20 pallets × 52/12 weeks
$4.50/pallet/week
$390
$5.50/pallet/week
$476.67
Receiving: 10 pallets
$25/pallet
$250
$15/pallet
$150
Base pick and pack: 1,000 orders
$2.20/order
$2,200
$2.70/order
$2,700
Additional picks: 1,000 units
$0.80/unit
$800
$0.35/unit
$350
Packaging: 1,000 parcels
$0.70/parcel
$700
$0.45/parcel
$450
Monthly account/platform fee
$180
$80
Minimum top-up
$0
$0
Warehouse subtotal
$4,520
$4,206.67
Freight: 1,000 parcels
$9.20 weighted average
$9,200
$9.00 weighted average
$9,000
Total modelled monthly cost
$13,720
$13,206.67
Modelled cost per order
$13.72
$13.21
Quote A wins on the two headline rates: storage and the first pick. Yet Quote B is $513.33 cheaper for this month, about 3.7% below A’s total. It remains $313.33 cheaper before freight is included.
This does not make B universally cheaper. The result depends on this order profile and the stated inclusions. The example assumes no returns, rework, peak fees, setup costs or other exceptions during the month. Those are zero in this illustration, not presumed free in a real quote.
Now test a quiet month and a peak month
At 100 two-unit orders, A’s eligible pick-and-pack charges would be $300, so its $500 minimum creates a $200 top-up. B’s eligible charges would be $305, so its $400 minimum creates a $95 top-up. Storage, packaging, account fees and freight remain outside these hypothetical minimums.
For peak season, increase stock positions, inbound deliveries and orders together. Include the expected packaging mix, returns, overtime or peak charges, and any rate-tier changes. Ask whether the provider can support the required throughput at the quoted service level.
For an annual decision, model each month rather than multiplying your busiest month by twelve. Add onboarding, integration and expected exception costs. Show exit costs separately for the point at which they could occur. Use cost per order as a supporting measure, recognising that it rises in quiet months when fixed costs are spread over fewer orders.
6. Check the service behind the price before signing
Two totals are only comparable if they buy a comparable service. A lower bill may be poor value if stock takes longer to become available, dispatch cut-offs do not suit your customers or error resolution absorbs hours of your team’s time.
Agree how receiving turnaround, dispatch timeliness and inventory accuracy will be measured. Ask about order cut-offs, carrier collections, peak capacity, stock discrepancy reporting and the escalation process when something goes wrong. A promise of “fast dispatch” needs a measurable definition.
Your final quote-comparison checklist
- Same workload: every provider has priced the same stock, order and delivery profile.
- Defined units: pallet, pick, carton, order and labour-hour all have clear meanings.
- Complete scope: receiving, put-away, replenishment, packaging and dispatch inclusions are documented.
- Minimums explained: eligible charges, top-ups and any fixed fees are separate.
- Freight reconciled: equivalent services, destination mixes, packed dimensions and applicable surcharges are included.
- Exceptions controlled: rework, returns and urgent jobs have rates, approval rules and evidence requirements.
- Contract changes visible: check rate-review provisions, notice periods, volume commitments, renewal and termination arrangements.
- Exit priced: understand stock removal, final counts, pallet preparation, data export and any account-closing charges.
- Service agreed: receiving and dispatch commitments match your operating needs.
- Invoice checked: the provider has supplied a worked sample showing quantities, rates and any top-ups.
After onboarding, reconcile the first full invoice against the agreed rate card and actual activity. Separate genuine volume changes from unexpected rates or charges. Repeat after a major promotion or operational change so small billing misunderstandings do not become permanent expenses.
Want a quote built around your actual operation?
MCS Logistics Group supports businesses with warehousing and storage, order fulfilment and value-added services. Send your SKU count, typical and peak storage needs, inbound profile, order volumes and delivery requirements, and ask for a breakdown matched to that work.
Talk to MCS Logistics Group about your 3PL requirements. The aim is a bill you can understand and budget for, with a service that fits the business you are building.
Sources and pricing notes
Sources checked 12 October 2026. Provider and carrier terms can change; confirm the schedule that applies to your quote.
- eFillShip: published fulfilment pricing (example of minimum-fee scope).
- Australia Post: business size and weight guidelines (parcel charging conditions).
- StarTrack: fuel surcharge and pricing information (variable and additional freight charges).
The comparison figures are invented for explanation and are not an Australian rate survey or an MCS price offer.
