If you’re scaling an online business, sooner or later you’ll find yourself asking one big question what is the actual pick and pack price?
Understanding the pick and pack price helps businesses plan budgets, negotiate better contracts and avoid surprise fees. Fulfilment is one of the biggest operating expenses for any retailer, so having cost clarity can literally change your bottom line.
This guide breaks down everything you need to know.
What Is Pick and Pack Pricing?
Pick and pack pricing refers to the amount fulfilment centres charge to locate ordered items (pick), prepare them for shipment (pack), and hand them off to courier partners.
A typical pick and pack price includes:
• Picking fee (per SKU or per order)
• Packing fee (materials + labour)
• Shipping label generation
• Handling fee
• Storage (charged separately)
Every fulfilment provider structures pricing differently, which is why understanding cost models is essential.
Average Pick and Pack Price in 2025
While pricing varies between countries and service levels, the global average pick and pack price falls into these ranges:
Standard Pick Fee:
₹10 – ₹40 per order (India)
$1 – $3 per order (Australia, UK, US)
Additional Pick Fee per Extra SKU:
₹3 – ₹10 per extra SKU
$0.10 – $0.60 per extra SKU
Packing Fee:
₹10 – ₹25 per order
$0.30 – $1.20 depending on material
Packaging Materials:
• Cartons: ₹8 – ₹35
• Bubble wrap: ₹3 – ₹10
• Void fillers: ₹2 – ₹8
• Tapes and wraps: cost varies
You can explore high-quality packaging solutions here:
https://carewellgroup.com.au/category/packaging/
Storage:
Charged per cubic foot or per pallet per month.
Labeling:
₹2 – ₹5 per label or included in base fee.
Kitting or Assembly:
₹3 – ₹15 depending on complexity.
These are standard industry numbers but can vary with order volume and service levels.
What Affects Pick and Pack Price?
Understanding what drives costs helps you control your budget better.
1. Order Volume
Higher order quantities = better pricing.
Fulfilment centres decrease the pick and pack price as volume grows.
2. SKU Complexity
More SKUs or complex items cost more to handle.
3. Packaging Requirements
Fragile or temperature-sensitive products need special packing material.
4. Storage Duration
Long-term storage adds to the total fulfilment expense.
5. Speed of Fulfilment
Same-day or express fulfilment increases the rate.
6. Industry Type
• Cosmetics and electronics are higher touch
• Apparel and accessories are cheaper to handle
7. Manual vs Automated Warehouses
Automation reduces the pick and pack price because:
• Less labour
• Faster turnaround
• Lower error rate
Pick and Pack Pricing Models
1. Per-Order Pricing
A flat fee per order most common for small businesses.
2. Per-SKU Pricing
Base fee for first SKU + extra cost for additional SKUs.
3. Monthly Subscription Model
Warehouses charge a fixed monthly fulfilment cost.
4. Pay-As-You-Go Model
Perfect for seasonal and fluctuating order volumes.
5. Ecommerce Bundle Pricing
Fulfilment + inventory + customer support bundled into one plan.
Hidden Charges to Watch Out For
Here are the most common extra fees that surprise new merchants:
• Stock receiving fee
• Returns processing fee
• Long-term storage charges
• Manual pick fee for oversized items
• SKU relabeling charges
• Custom packaging charges
• Rush fulfillment fee
• Weekend dispatch fee
How to Lower Your Pick and Pack Price
Here are smart ways to reduce ongoing fulfilment expenses:
1. Reduce SKU Count
Fewer SKUs = lower picking time = lower fees.
2. Standardise Packaging Materials
Custom packaging is great for branding but increases cost.
Standardised supplies are cheaper and more efficient.
Browse reliable packaging suppliers here:
https://carewellgroup.com.au/packaging-supplies-in-australia/
3. Store Fast-Moving SKUs Closer to Dispatch Area
This reduces picker travel time.
4. Pre-Bundle or Pre-Pack Items
Subscription boxes, kits and combos reduce labour cost.
5. Increase Shipment Size Per Order
Higher volumes unlock discounted rates.
6. Choose a 3PL Close to Your Customers
Lower courier and handling fees.
7. Move to Automated Fulfilment Where Possible
Automation lowers the pick and pack price significantly.
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Why Packaging Quality Impacts Pick & Pack Cost
Cheap packaging can cause:
• Product damage
• Courier penalties
• More returns
• Customer dissatisfaction
A good fulfilment system always includes strong packaging, proper cushioning and tamper-proof sealing.
Explore wraps, tapes and industrial packaging here:
https://carewellgroup.com.au/category/wraps/
When Should You Outsource Pick and Pack?
Not sure when to outsource?
Here’s a simple test:
If you spend more than 1–2 hours daily handling orders
OR your storage space is getting overloaded
OR your courier delays are increasing
then outsourcing will actually be cheaper than doing it yourself.
Businesses usually outsource when they hit:
• 20–30 daily orders
• Product expansion
• Peak seasons
• High return rates due to bad packing
• Costly labour management
Final Thoughts Understanding Pick and Pack Price Helps You Scale Smarter
The pick and pack price is more than just a number. It’s a big part of your overall business strategy.
When you know the pricing models, cost factors and hidden fees, you can negotiate better, plan smarter and scale without stress.
Whether you’re a startup or an established brand, getting fulfilment costs right will define your growth pace in 2025 and beyond.
Carewell Group – Packaging, Logistics & 3PL Support for Growing Businesses
Carewell Group helps brands across industries with world-class packaging, logistics and custom 3PL solutions.
Location:
Carewell Group Pty Ltd
Unit 27/191, Mccredie Road, Smithfield, NSW 2164
Phone: +61 0477 123 699
Email:
sales@carewellgroup.com.au
info@carewellgroup.com.au
logistics@carewellgroup.com.au
