A pick and pack business is one of the most powerful ways to support modern e-commerce brands, logistics companies, wholesalers and SMEs that need accurate order fulfilment. And with Australia’s online retail sector growing rapidly, the demand for reliable, third-party pick and pack solutions is only climbing.
If you’ve ever thought about launching, improving or scaling your pick and pack business, this guide walks you through everything systems, workflows, tools, staffing, pricing, client attraction, and the cost-saving strategies that give you a competitive edge.
What Is a Pick and Pack Business?
A pick and pack business handles the full process of receiving stock, storing products, picking items from warehouse shelves once an order is placed, packing them securely and shipping them to the customer.
Clients usually include:
- E-commerce stores
- Subscription box companies
- Manufacturers
- Distributors
- Wholesalers
- Food brands
- Retailers needing overflow fulfilment
Many brands outsource this because it cuts down their overheads, reduces labour load and keeps their operations running smoothly.
Why The Pick and Pack Business Model Works So Well Today
If you’re planning to enter this industry, the timing couldn’t be better. Several market factors are driving huge demand:
- Faster shipping expectations (customers expect 24–48 hour delivery)
- E-commerce scaling across apparel, beauty, FMCG, food packaging, industrial products
- Supply chain diversification—brands are outsourcing to specialist fulfilment providers
- Rising warehouse rental costs—businesses prefer outsourcing over expanding their space
This makes a pick and pack business one of today’s most profitable fulfilment models provided your operation prioritises speed, accuracy and efficiency.
How a Pick and Pack Business Works (Step by Step)
A smooth workflow is the backbone of a scalable pick and pack operation. Here’s the streamlined version:
1. Receiving
Goods are delivered, checked, scanned and added to your inventory system.
2. Storage
Items are organised into shelving, pallet racking, bins or storage zones.
You can link to Carewell’s storage solutions here:
https://carewellgroup.com.au/storage-solution/
3. Order Processing
Orders flow in from Shopify, WooCommerce, Amazon, or client APIs.
4. Picking
Warehouse staff pick products using:
- Paper pick lists
- Pick-to-light
- Barcode scanners
- Mobile pick and pack apps
- Automated conveyor systems
5. Packing
Products are packed using protective packaging, wraps, trays and bags.
Internal link examples:
- Packaging solutions: https://carewellgroup.com.au/category/packaging/
- Poly mailers: https://carewellgroup.com.au/product-category/poly-bags-mailers/
- Tools & equipment: https://carewellgroup.com.au/product-category/tools-equipments/
6. Dispatch
Orders are labelled, manifested and shipped via carriers.
What You Need to Start a Pick and Pack Business
Starting a pick and pack business requires smart planning, the right equipment and repeatable systems. Here’s your starter checklist:
1. Warehouse Space
A good starting size: 150–500 sqm, depending on your client base.
2. Shelving, Pallet Racking & Storage
Create zones for:
- Fast-moving items
- Medium-movement stock
- Bulk storage
3. Packaging Supplies
You’ll need:
- Shrink wrap
- Stretch wrap
- Tape
- Bubble wrap
- Poly mailer bags
- Protective trays
- Shipping cartons
To streamline sourcing, explore Carewell packaging:
https://carewellgroup.com.au/
4. Pick and Pack Software
A good WMS (warehouse management system) links everything together.
Options include Cin7, DEAR, Unleashed, or custom apps.
5. Staff
Start with:
- 1–2 pickers
- 1 packer
- 1 inventory controller
- 1 admin/operations coordinator
6. Standard Operating Procedures
Document SOPs for accuracy, speed and consistency.
Pick and Pack Business Pricing Models
A successful pick and pack business usually charges with one of these structures:
Per-Order Pricing
Common in e-commerce fulfilment.
Per-Item Fee
Each item picked is charged separately.
Hourly Handling Fee
Based on labour.
Storage Fee
Charged by pallet, bin or shelf.
Receiving Fee
For inbound goods processing.
Packaging Supplies Fee
Charged by item or included in a bundled rate.
Best Practices for Running a High-Performance Pick and Pack Business
Here’s where you can outperform competitors:
Keep Inventory Accuracy Above 98%
Mis-picks can destroy profitability. Use barcode scanners and regular cycle counts.
Optimise Warehouse Layout
Fast-moving items should always be closest to packing stations.
Standardise Packaging
Choosing standard box sizes cuts packing time dramatically.
Use a Powerful WMS
Real-time visibility reduces errors, improves speed and helps clients trust your operation.
Invest in Staff Training
The quickest way to boost fulfilment speed is by training pickers to move efficiently.
Offer Value-Added Services
Brands love extras like:
- Kitting
- Custom packaging
- Labelling
- Return management
- Subscription box packing
Internal link for custom packaging solutions:
https://carewellgroup.com.au/custom-solutions/
Who Should Use a Pick and Pack Business?
Great for:
- Start-up e-commerce brands
- Australian-made product sellers
- Warehouses needing overflow capacity
- Subscription box companies
- Beauty and skincare brands
- FMCG and food brands
- Industrial and B2B suppliers
Many Australian product brands prefer outsourcing rather than managing the complexity of fulfilment themselves.
The Future of Pick and Pack Businesses in Australia
A few major trends are shaping the market:
- Robotics and automation in warehouses
- Zero-error fulfilment becoming the industry expectation
- Eco-friendly packaging rising in demand
- Faster last-mile delivery options
- More SMEs outsourcing fulfilment to 3PLs
Interested readers can explore global logistics insights here:
https://share.google/lgtCmZysrDNTmlqtf (dofollow)
Why Packaging Matters to Your Pick and Pack Business
Accurate fulfilment is important—but so is packaging quality. It directly affects:
- Product protection
- Customer experience
- Shipping costs
- Returns rate
Carewell Group supplies durable, efficient and sustainable packaging materials that help fulfilment centres streamline operations:
https://carewellgroup.com.au/sustainability/
Location & Contact
Carewell Group Pty Ltd
Unit 27/191, Mccredie Road, Smithfield, NSW 2164
Phone: +61 0477 123 699
Emails:
sales@carewellgroup.com.au
info@carewellgroup.com.au
logistics@carewellgroup.com.au
