International Logistics Group Clarifies UK 3PL Pricing Structure
International Logistics Group (ILG) has released a guide detailing the cost components of third-party logistics (3PL) services in the UK. The publication aims to demystify pricing for growing brands by outlining typical cost structures and models.
Third-party logistics provider International Logistics Group (ILG) has published a guide to clarify the pricing structure of third-party logistics (3PL) services within the UK market. The resource breaks down the typical cost components and pricing models that businesses can anticipate when engaging with logistics partners.
According to ILG, 3PL pricing in the UK is generally built from five to seven distinct cost elements. Among these, storage fees and pick-and-pack charges are frequently the most significant contributors to a brand's monthly bill. Other associated costs include goods-in processing, packaging materials, handling returns, and outbound shipping arrangements. For companies processing between 500 and 5,000 orders monthly, a baseline industry benchmark for the all-in cost per order is estimated to be between £1 and £3.
Key UK market benchmark ranges across primary fulfilment cost categories include: goods-in (£10-£30 per pallet/container received), storage fees (£10-£30 per pallet per month), pick and pack (£0.45-£2.60+ per order, often with a base fee plus per-item rate), packaging (£0.10-£0.50 for standard items, up to £5 for branded options), and returns processing (£0.50-£2.00 per item returned).
The guide highlights several variables that significantly influence total costs. These include order volume, the number of Stock Keeping Units (SKUs) managed, product size and weight, specific packaging requirements, the mix of sales channels (e.g., DTC, marketplace, retail), and peak throughput demands. ILG notes that its own services typically fall within the mid-to-upper range of standard market rates, reflecting specialized warehouse infrastructure and dedicated account management.
ILG outlines four commercial pricing models: activity-based, fixed/flat-rate, cost-plus agreements, and a hybrid model. The company advises prospective clients to ask seven key questions before signing contracts to clarify terms and identify potential hidden costs, such as long-term storage penalties, minimum monthly charges, peak surcharges, and setup fees.