3PL Pick and Pack Explained: Process, Prices, and How to Pick the Right Partner
Shipping delays. Inventory mistakes. Customer complaints about wrong items. Sound familiar? If you're running an eCommerce business, fulfillment headaches can quickly turn into business-threatening problems. As orders increase, the pressure on your in-house picking and packing operations can become overwhelming.
That's where 3PL pick and pack services come in. This guide breaks down everything you need to know about outsourcing your order fulfillment—from understanding the basic process to comparing costs and finding the right partner. Whether you're drowning in orders or planning for growth, you'll discover practical solutions to make your fulfillment more accurate, efficient, and scalable.
What is 3PL Pick and Pack?
3PL pick and pack is a fulfillment service where a third-party logistics company handles the entire process of selecting products from inventory and packaging them for shipment to customers. It's the backbone of eCommerce fulfillment, taking the burden of warehouse operations off your shoulders.
The process follows four main steps:
Order received - Your customer places an order through your online store, which automatically transfers to the 3PL's system
Items picked - Warehouse staff locate and retrieve the ordered products from storage shelves
Items packed - Products are carefully packaged with appropriate materials and any inserts or promotional materials
Order shipped - The package is labeled and handed off to a shipping carrier for delivery
This seemingly simple workflow requires sophisticated coordination between inventory management systems, warehouse staff, and shipping carriers—all working together to get orders to your customers quickly and accurately.
Why The Efficiency of Picking and Packing Matters
The speed and accuracy of your pick and pack operations directly impact your bottom line. This isn't just about logistics—it's about customer satisfaction and repeat business.
Consider this: businesses offering one-day shipping see conversion rates up to 70% higher than those with standard shipping options. And with 84% of consumers saying they won't return to a brand after a poor delivery experience, the stakes are high.
Accuracy matters just as much as speed. Top 3PLs maintain error rates below 0.5%, which translates to fewer returns, lower costs, and happier customers. When Rush Order achieves its 99.9% accuracy rate, it means 999 out of 1,000 orders arrive exactly as expected—creating the kind of reliability that builds customer loyalty.
Efficient pick and pack operations aren't just a cost center—they're a competitive advantage that drives revenue growth through improved customer experience.
Core Pick & Pack Methods
Not all picking methods are created equal. The right approach depends on your order volume, product types, and business goals.
Piece Picking
How it works: One order at a time, start to finish
Best for: Small operations with low order volume
Pros: Simple to implement, minimal training needed
Cons: Inefficient for high volume, more walking time
Batch Picking
How it works: Multiple orders picked simultaneously
Best for: Medium-volume operations with similar orders
Pros: Reduces travel time, increases picker productivity
Cons: Requires more sorting after picking, potential for mix-ups
Wave Picking
How it works: Orders grouped by shipping method or destination
Best for: Businesses with time-sensitive shipping deadlines
Pros: Optimizes for carrier pickups, improves shipping efficiency
Cons: Requires more sophisticated WMS, potential bottlenecks
Zone Picking
How it works: Warehouse divided into zones with dedicated pickers
Best for: Large operations with diverse product categories
Pros: Specialists become efficient in their zones, reduces congestion
Cons: Requires coordination between zones, more complex setup
The method you choose can dramatically impact your fulfillment speed. For example, batch picking typically improves productivity by 30-40% compared to piece picking for operations handling more than 100 orders per day.
Step-by-Step 3PL Workflow
Let's walk through what actually happens when your customer clicks "buy now" and a 3PL takes over:
Order import - Your customer's order flows from your eCommerce platform (Shopify, WooCommerce, Amazon) into the 3PL's warehouse management system. This happens automatically through API integrations, usually within minutes of purchase.
Pick list generation - The system creates optimized pick lists based on order priority, warehouse layout, and picking method. These lists tell warehouse staff exactly what to grab and where to find it.
Item picking - Staff use mobile scanners to locate and verify each item. They scan both location barcodes and product barcodes to ensure accuracy. This digital verification reduces errors by up to 67% compared to paper-based systems.
Quality check - Picked items undergo inspection to verify condition, quantity, and accuracy. Some 3PLs use weight-based verification or photo documentation for additional quality control.
Packaging selection - The system determines the optimal packaging based on item dimensions, fragility, and shipping method. This might be your custom branded packaging or standard materials.
Packing and inserts - Items are carefully packed with appropriate protection. Any promotional materials, thank you cards, or samples are added according to your specifications.
Shipping label generation - The system automatically selects the most cost-effective carrier based on destination, service level, and your preferences.
Final scan and handoff - The completed package receives a final scan before being sorted into carrier-specific areas for pickup or delivery.
This entire process can happen within hours of order placement, allowing for same-day shipping even during high-volume periods.
Real Pick and Pack Costs & Fee Breakdown
Understanding 3PL pricing helps you budget accurately and avoid surprises. Here's what you can expect to pay:
Per-pick fees: $0.20-$1.00 per item
Lower for simple items in easy-to-access locations
Higher for items requiring special handling or climate control
Per-pack fees: $0.15-$0.75 per order
Basic poly mailer: $0.15-$0.30
Standard box with minimal dunnage: $0.30-$0.50
Custom or gift packaging: $0.50-$0.75+
Additional costs to consider:
Storage fees: $15-$30 per pallet per month
Receiving fees: $25-$50 per hour
Special projects: $35-$55 per hour
Returns processing: $3-$7 per return
Peak season surcharges: 10-30% during holiday periods
Many 3PLs offer volume discounts, so your per-order cost decreases as you ship more. For example, a business shipping 500 orders monthly might pay $3.50 per order, while one shipping 5,000 orders might pay closer to $2.75.
The total cost typically ranges from 5-15% of your product's retail price—a worthwhile investment considering the alternative costs of warehouse space, staff, technology, and shipping materials.
Benefits of Outsourcing
Why hand over your fulfillment to a 3PL instead of doing it yourself? The advantages go beyond just saving time.
For starters, you'll likely save money. Running your own warehouse means paying for space, equipment, staff, insurance, and utilities—fixed costs that exist whether you ship 10 orders or 1,000. A 3PL converts these fixed costs into variable costs that scale with your business.
Take a real example: A skincare brand shipping 1,500 orders monthly saved $4,200 per month by switching from in-house fulfillment to a 3PL. Their cost per order dropped from $5.80 to $3.00, while accuracy improved from 96% to 99.7%.
Beyond cost savings, outsourcing gives you:
Flexibility to handle seasonal spikes without hiring temporary staff
Access to negotiated shipping rates that can be 15-35% lower than retail rates
Freedom to focus on product development and marketing instead of operations
Geographic distribution to reduce shipping times and costs
Scalability to grow without operational constraints
Perhaps most valuable is the peace of mind. Knowing your fulfillment is handled by specialists means one less thing keeping you up at night.
Must-Have Tech Stack
The technology powering modern pick and pack operations makes a huge difference in speed and accuracy. Here's what to look for:
Warehouse Management System (WMS) A good WMS is the brain of the operation, tracking inventory locations, optimizing pick routes, and managing orders. Look for systems with real-time visibility and detailed analytics.
Barcode Scanning Mobile scanners verify products at every stage, reducing human error. Advanced systems can scan multiple items simultaneously, speeding up the process.
Inventory Forecasting AI-powered forecasting helps prevent stockouts by predicting demand patterns based on historical data, seasonality, and market trends.
Automation Tools From conveyor systems to pick-to-light technology, automation reduces labor costs and increases throughput. Some facilities now use collaborative robots that work alongside human pickers.
Integration Capabilities Your 3PL's systems should connect seamlessly with your eCommerce platform, allowing for real-time inventory updates and order tracking.
The right technology can reduce pick times by up to 50% while improving accuracy to 99.9%+. When evaluating 3PLs, ask for a demo of their systems to see how technology supports their operations.
Rush Order's Same-Day Pick & Pack Advantage
With over 30 years of experience in 3pl fulfillment, Rush Order has refined its pick and pack process to deliver exceptional results for eCommerce brands.
What sets Rush Order apart is their commitment to same-day processing. Orders received before noon are picked, packed, and shipped the same day—a service level that few competitors can match consistently. This speed translates directly to customer satisfaction and repeat purchases.
Their technology stack includes real-time inventory tracking across multiple warehouses, allowing for strategic inventory placement that reduces shipping times and costs. The system integrates with all major eCommerce platforms including Shopify, WooCommerce, Amazon, and dozens more.
A beauty brand that switched to Rush Order saw their average delivery time drop from 4.2 days to 2.3 days, while their customer satisfaction scores increased by 22%. During their Black Friday sale, they processed 3,200 orders in a single day with 99.8% accuracy—something that would have been impossible with their previous fulfillment partner.
Rush Order also offers flexible packaging options, from plain poly mailers to premium custom boxes with personalized inserts. This attention to the unboxing experience helps brands create memorable moments that drive customer loyalty.
Provider Selection Checklist
Finding the right 3PL partner is crucial for your business success. Use this checklist to evaluate potential providers:
Performance Metrics
Order accuracy rate (look for 99%+)
On-time shipping percentage
Average time from order to shipment
Returns processing time
Technology Capabilities
Real-time inventory visibility
Order tracking portal for customers
Integration with your eCommerce platform
Reporting and analytics
Operational Flexibility
Same-day shipping options
Custom packaging capabilities
Ability to include marketing inserts
Special handling for fragile or regulated products
Scalability
Capacity during peak seasons
Multiple warehouse locations
International shipping expertise
Growth-friendly pricing structure
Business Stability
Years in business
Financial stability
Client retention rate
Industry experience with products similar to yours
Communication
Dedicated account manager
Regular performance reviews
Transparent issue resolution process
Emergency contact procedures
Don't just take the 3PL's word for it—ask for references from current clients with similar business models to yours. A good partner will be happy to connect you with satisfied customers.
FAQs
How does a 3PL pick and pack warehouse work? A 3PL warehouse receives your inventory in bulk, stores it, and then processes individual customer orders. When an order comes in, staff pick the items from shelves, pack them securely, and ship them to your customer using the appropriate carrier. The entire process is managed through software that integrates with your online store.
What is the average pick and pack fee in the USA? The average combined pick and pack fee ranges from $2.50 to $5.00 per order, depending on order complexity and volume. This typically includes basic packaging materials, but custom packaging or special inserts may cost extra.
Which pick and pack method is best for high-SKU eCommerce? Zone picking typically works best for businesses with many different products (high SKU count). By dividing the warehouse into zones with dedicated pickers, it reduces travel time and allows staff to become experts in finding items in their assigned areas.
Can I use my own branded packaging with a 3PL? Yes, most 3PLs welcome branded packaging. You'll need to supply the materials and provide clear instructions for their use. Some 3PLs charge a small fee for storing and using custom packaging, but the brand recognition and customer experience benefits usually outweigh the cost.
How do 3PLs keep pick errors below 1%? Top 3PLs maintain high accuracy through barcode scanning verification, weight checks, photo documentation, and quality control stations. Many implement a "scan-match-scan" process where items are verified multiple times before shipping. Regular performance metrics and staff training also help maintain accuracy.
What KPIs should I track to measure pick and pack performance? Key performance indicators should include order accuracy rate, on-time shipping percentage, average processing time, cost per order, returns due to errors, and inventory shrinkage. These metrics help identify areas for improvement and ensure your 3PL is meeting expectations.
Ready for Reliable Fulfillment?
Efficient pick and pack operations can transform your business—reducing costs, improving customer satisfaction, and giving you back the time to focus on growth. The right 3PL fulfillment partner doesn't just ship boxes; they become an extension of your brand, delivering the experience your customers expect.
With Rush Order's 99.9% accuracy rate, same-day shipping, and flexible solutions, you can turn fulfillment from a challenge into a competitive advantage. Stop worrying about shipping logistics and start focusing on what you do best.
Ready to eliminate pick errors, reduce costs, and scale confidently? Get your customized quote from Rush Order today.
Read Also:
Understanding 3PL Partnerships
How to Choose the Right 3PL Provider
The Ultimate Guide to 3PL Software
10 Winning 3PL Sales Strategies
