3PL Match · USD 99
Four fulfilment providers, and why the cheapest quote is the dearest
Your order profile priced on a like-for-like basis, with the surcharges that do not appear on a rate card.
You have two quotes that look 30 percent apart and are not comparable, because one includes pick and pack in the storage rate and the other bills it per line. This shortlist rebuilds all four providers on your actual order profile, which is the only way to see what any of them cost.
On rate cards the order is D, B, A, C from cheapest. On your real order profile, with your average of 2.4 lines and 19 percent of orders containing an oversize item, it is B, A, D, C. The provider quoting the lowest storage rate is the second most expensive on the year.
Profile
What was priced
Every provider below is costed against the same twelve months of your real orders, not against a standard basket. Three characteristics of your profile move the answer more than the rate card does.
| Characteristic | Your figure | Why it matters |
|---|---|---|
| Orders a month | 3,400, peaking at 6,100 in December | Peak surcharges apply in two of the four |
| Average lines per order | 2.4 | Per-line pick fees punish this profile |
| Oversize items | 19 percent of orders | The single biggest cost driver |
| SKUs held | 340, of which 60 are 80 percent of volume | Long-tail storage is the hidden cost |
| Returns rate | 8.5 percent | Only two of the four quoted returns handling |
| Integration | Shopify plus a 3PL app | All four support it, at different costs |
| Cut-off needed | 16:00 for next day | One provider cuts off at 14:00 |
True cost
All four, rebuilt on your orders
| Storage | Pick and pack | Oversize | Peak | Returns | |
|---|---|---|---|---|---|
| Provider A | Included to 200 SKU | Per order | Flat USD 1.40 | None | Quoted |
| Provider B | Per pallet | Per order | Flat USD 1.10 | None | Quoted |
| Provider C | Per pallet | Per order | Banded | 8 percent Nov to Jan | Quoted |
| Provider D | Lowest rate | Per line | Per kg over 5 kg | 12 percent Nov to Jan | Not quoted |
Provider D wins on every line a rate card shows and loses on every line it does not. Per-line picking on a 2.4 line average, per-kilogram oversize on 19 percent of orders, and a 12 percent peak surcharge in your three biggest months.
Service
What separates them, since price does not
| Term | A | B | C | D |
|---|---|---|---|---|
| Order cut-off | 16:00 | 16:30 | 17:00 | 14:00 |
| Accuracy commitment | 99.5% | 99.3% | 99.8% | None stated |
| Claims window | 14 days | 7 days | 30 days | 5 days |
| Notice to exit | 90 days | 60 days | 90 days | 180 days |
| Onboarding time | 6 weeks | 4 weeks | 8 weeks | 4 weeks |
| Named account contact | Yes | Yes | Yes | Shared inbox |
A 14:00 cut-off and a 180 day exit notice are the two terms in this table that would affect you every single week. Neither appears on a quote and both were found by reading the terms attached to it.
Provider B
Lowest true cost, 16:30 cut-off, 60 day exit and the fastest onboarding. The seven day claims window is tight and is the one thing to negotiate.
Provider C
USD 11,400 a year more than B and the strongest terms here: 99.8 percent accuracy, 30 day claims, 17:00 cut-off. If your returns and complaints load is the real problem, this is worth the money.
Provider D
The quote you were about to accept. Per-line picking, per-kilogram oversize, a 12 percent peak surcharge, a 14:00 cut-off and 180 days to leave.
Next
What to put to each of them
- Before any call
Send all four the same order profile
The twelve months in section 01, as a file. Ask each to requote against it. Any provider who will not is telling you something.
- First call
Ask the four questions that are never on a quote
Cut-off, claims window, exit notice and peak surcharge. In that order, in the first ten minutes.
- Second call
Ask about oversize specifically
Nineteen percent of your orders. Get the oversize rule in writing with a worked example of your largest SKU.
- Before signing
Visit the site that will actually hold your stock
Not the head office. Providers with several sites often quote from one and fulfil from another.
- At contract
Negotiate the claims window, not the rate
The rate is close across all four. The claims window is where a bad month costs you real money, and it is the term providers move on most easily.