Make the decision with evidence
Compare two 3PL quotes using the same workload
Compare the total cost of the same workload under each proposal. A lower first-item pick fee can be outweighed by packaging, storage, account charges or a minimum billing commitment.
Prepared for Fulfillment Hub USA with AI assistance. Source and release checks completed on .
Illustrative monthly workload: 1,000 single-item orders and 30 returns
| Included cost category | Example A | Example B |
|---|---|---|
| First-item picking: 1,000 single-item orders | $2,100 | $2,450 |
| Receiving: the same planned inbound workload | $160 | $90 |
| Storage: the same inventory profile | $420 | $260 |
| Packaging: materials for 1,000 orders | $400 | $200 |
| Returns: 30 standard inspections | $105 | $75 |
| Systems/account charge | $180 | $60 |
Fix the assumptions before comparing prices
This example assumes the same products, inbound workload, inventory profile, packaging need and return inspections under both proposals. Every order contains one item. No special handling, additional-item picks, labeling projects or exceptional return work is included.
In a real comparison, attach a workload sheet to the request: orders, units per order, SKU dimensions, average and peak inventory, receipts, return conditions, channels and packaging. Ask both providers to identify what they cannot price from those inputs.
Calculate the subtotal and the minimum separately
The six categories total $3,365 for Example A and $3,135 for Example B. A uses a $2.10 first-item pick assumption; B uses $2.45. The lower pick assumption does not make A the lower subtotal.
For this illustration only, the minimum is a floor covering all six categories, not an additional fee. A has a $3,500 minimum and B a $3,000 minimum. The resulting included-category bills are max($3,365, $3,500) = $3,500 and max($3,135, $3,000) = $3,135: a $365 difference. Actual contracts may define minimums differently.
Do not compare unlike storage or receiving units
A pallet, bin, shelf position and cubic-foot charge are not interchangeable. Confirm how occupied space is measured, when the measurement is taken, whether partial periods are charged, and what happens during a launch or seasonal peak.
Receiving can be priced against time, pallets, cartons, units or a defined standard receipt. Ask what constitutes a nonconforming delivery and whether counting, labeling, inspection or rework is included. A zero line on an incomplete quote is an unknown, not a free service.
Run a second scenario before choosing
Repeat the calculation for a quiet month, a normal month and a plausible peak using the same definitions. Include additional-item picks when orders contain more than one item. Recalculate returns based on inspection and disposition needs rather than treating every return as identical.
Keep excluded transportation and accessorial charges visible in a separate section. A comparison of warehouse service charges cannot establish the total landed cost to customers. Request the missing assumptions before making a savings claim.
Turn the comparison into a useful quote request
Ask each provider to confirm the charging unit, included work, minimum treatment, escalation triggers and review date. Document any answer that changes the workload assumptions and give the same corrected inputs to every provider.
The result should be a scoped commercial conversation, not a winner selected from one advertised number. Pricing, operational fit and implementation readiness all need to agree before inventory is committed.
Method and supporting references
The decision framework is original FHU educational analysis. References explain platform-specific concepts, not FHU capabilities or service commitments. The worked quote example uses fictional inputs and reproducible arithmetic, not market pricing.