“Pick and pack fulfilment services” usually means a third party that stores your stock, picks each order, packs it and ships it for a per-order fee. It can be the right move for a growing business. It can also be an expensive way to paper over a pack bench that was never set up properly. This guide explains what these services include, how to evaluate a provider, when in-house is the better answer, and why you set the packaging spec either way.
What pick and pack fulfilment services include
- Receiving: taking your inbound stock, checking it and putting it away.
- Storage: holding inventory, usually charged per pallet, per shelf or per cubic metre per month.
- Pick and pack: collecting the items in each order, packing them into a shipping outer and labelling them, charged per order plus per item.
- Dispatch: handing parcels to carriers, often at rates negotiated on the provider’s volume.
- Returns: receiving, inspecting and restocking or disposing of returned goods.
- Reporting: stock levels, order status and dispatch performance through a portal.
The process itself is the same one you would run in-house. See the pick and pack process for the full sequence.
How to evaluate a provider
| Area | What to check |
|---|---|
| Pricing transparency | Per-order, per-item, storage, receiving, returns and account fees itemised. Ask for a quote against a real month of your orders, not an average. |
| Accuracy | Pick accuracy of 99% or better, measured and reported. Ask how mis-picks are corrected and who pays. |
| Dispatch speed | A same-day cut-off you can rely on, with performance reported against it. |
| Integration | Direct connection to your sales channels so orders flow automatically and tracking flows back. |
| Packaging | Will they pack to your format range and branded materials, or only their generic boxes? This shapes your freight cost and your unboxing. |
| Location | One despatch point central to your customers, or split inventory. Affects transit time and zone-based freight. |
| Exit terms | Notice period, stock-removal cost and data portability if you leave. |
When in-house is the better answer
Outsourcing makes sense when operational complexity genuinely exceeds what you can run well: high or sharply seasonal volume, complex multi-item picking, hazardous or regulated goods, or no warehouse space. It makes less sense when the real problem is a slow pack bench, because you are then paying a margin on top of an inefficiency you could fix cheaply.
Signs the issue is the bench, not the model:
- Packers choose a box size for every order instead of sizing by glance.
- Sealing takes several passes of plastic tape.
- Orders ship in oversized boxes with lots of void fill.
- Freight bills are higher than the parcel weights suggest they should be.
Work through contract packing versus smart in-house packaging before you sign anything.
Why you set the packaging spec either way
Using a fulfilment provider does not hand over the packaging decision, and it should not. The packaging drives three numbers that are yours to own:
- Freight. Carriers bill on the greater of actual and dimensional weight. Give the provider a right-sized format range so orders are not shipped as air. See where pick and pack fees come from.
- Brand experience. Your printed mailers, tape and tissue, packed to your standard, keep the unboxing consistent.
- Returns. Resealable mailers and clean-opening cartons keep returns recoverable.
Carewell Group can support the storage and dispatch side and supply every packaging format your fulfilment needs, whether you pack in-house or a provider packs for you. We are not a contract packing, kitting or filling service; our role is to make the packaging around your operation right.
How Carewell Group helps
Carewell Group is an Australian packaging manufacturer and supplier. We provide:
- Poly satchels, kraft paper mailers and recyclable honeycomb padded mailers in matched size ranges.
- Right-sized cartons, paper void fill, edge protection and water activated tape with dispensers.
- Custom print on mailers and tape so branding survives an outsourced pack line.
- A parcel-profiling review to define the three or four formats that cut your freight, which you then hand to your provider or run in-house.
Carewell can meet all your packaging needs for your business. Talk to our expert and we will work to your required MOQ. Call +61 (02) 8760 1491 or request samples and a sizing review. See also pick and pack solutions and pick and pack 3PL.
Frequently asked questions
What are pick and pack fulfilment services?
A third party that receives and stores your stock, then picks, packs, labels and ships each order for a per-order fee, usually with returns handling and reporting included.
How much do they cost?
Typically a per-order fee plus a per-item pick fee, storage per pallet or cubic metre per month, plus receiving and returns charges. Always quote against a real month of your orders.
When should I keep fulfilment in-house?
When volume is moderate, picking is simple, brand experience matters and the main problem is a slow pack bench rather than genuine operational complexity.
Does the provider choose my packaging?
No. You specify the format range, sizing rules and branded materials, and the provider packs to that spec.
Sources
- Australia Post, business shipping and parcel pricing: auspost.com.au
- MHI, order-picking fundamentals: mhi.org
Written by Alif Vasaya, digital and content strategy, Carewell Group. Carewell Group is an Australian packaging, food packaging, tape, industrial safety and 3PL supplier serving all of Australia. Last updated 10 September 2026.