Pick & Pack — Definition, Fee Models & 2025 E-commerce Fulfillment Workflow Updated Dec 2025
Source: U.S. 3PL pick & pack tariffs, Amazon FBA/FBM fee tables (2025), Shopify and marketplace fulfillment guides, and WinsBS Research (2025). Pick & Pack is the core operational step that turns paid orders into ready-to-ship parcels inside a warehouse.
Industry Standard Definition
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Pick & Pack is the operational workflow in which a warehouse or third-party logistics (3PL) provider:
- receives a customer order from an Order Management System (OMS) or sales channel,
- generates a Picking List with item locations and quantities,
- picks inventory from bins, shelves, or pallets, and
- packs the items into a shipping-ready carton or mailer with appropriate materials and labels.
— North American Warehouse Operations Handbook (2025 Edition)
In e-commerce fulfillment, Pick & Pack directly affects cost per order, error rate, on-time shipping SLA, and customer satisfaction. Many 3PLs combine Pick & Pack charges with Handling Fees, making it a critical line item in the total landed cost structure.
Pick & Pack Process & 2025 Fee Models
View Common Workflows & Billing Methods
Standard Pick & Pack Workflow
- Order Release: OMS/WMS sends orders to the warehouse floor with priority and ship-by time.
- Picking: Associates follow a picking list using batch picking or wave picking methods.
- Scanning & Verification: SKUs are scanned against the order to prevent mispicks.
- Packing: Items are placed into cartons, void fill is added, and DIM is optimized to control Dimensional Weight (DIM).
- Labeling: Shipping label, packing slip, and any compliance labels are applied.
- Staging: Completed parcels move to carrier staging lanes for pickup.
Common Pick & Pack Fee Models
| Model | How It Works | Best Used For |
|---|---|---|
| Per-Order Pick & Pack | Flat fee per order including picking first item + packing labor. | Simple orders with 1–3 lines and low SKU complexity. |
| Per-Item Pick Fee | Base fee for first item, plus add-on fee for each additional unit in the same order. | Catalogs with multi-line orders or frequent upsells/bundles. |
| Bucketed Tier Pricing | Tiered fee based on number of order lines (e.g., 1–3, 4–6, 7+ SKUs). | Apparel, accessories, and high-SKU catalogs. |
| Hourly Labor Model | Labor billed per hour with productivity assumptions; materials billed separately. | B2B/wholesale orders, large kitting projects, or variable workflows. |
| Amazon FBA / FBM Pick & Pack | Pack fees embedded in Amazon’s fulfillment fees for FBA or performance-driven FBM / SFP. | Marketplace-centric brands using Amazon as primary channel. |
| Value-Added Services (VAS) | Extra fees for kitting, inserts, customization, and special packing instructions. | Brand-heavy DTC, subscription boxes, influencers, and crowdfunding rewards. |
Regional Nuance — U.S., EU, UK (2025)
View Regional Differences
| Region | Pick & Pack Pattern | Key Considerations |
|---|---|---|
| United States (US) | High adoption of WMS-driven batch and wave picking, with per-order + per-item fee structures common in 3PL contracts. | Tight ship-by SLA (same-day / next-day). Labor cost and DIM optimization heavily influence total fee. |
| European Union (EU) | Pick & Pack integrated with VAT-compliant invoicing and multi-country inventory placement. | Packaging and labeling rules guided by EU regulations (e.g., CE, WEEE, language requirements); returns rate is a major cost driver. |
| United Kingdom (UK) | Higher parcel share for cross-border EU/US shipments; pick & pack often bundled with post-Brexit export documentation. | Carrier selection and Incoterms (e.g., DAP vs DDP) shape packing requirements and customs documentation. |
| Amazon FBA / FBM | FBA embeds pick & pack in per-unit fulfillment fees; FBM/SFP sellers must maintain near-Prime-level speed and accuracy. | Error-driven re-picks and replacements increase cost; order defect rate (ODR) ties back to pick & pack quality. |
Pick & Pack Cost Drivers — Labor, SKU Complexity, Packaging
View Cost Components
| Driver | Examples | Impact on Fee |
|---|---|---|
| Order Line Count | 1-line DTC parcel vs 8-line apparel order | More lines mean extra pick labor; typically billed as per-additional-item fees. |
| SKU Complexity | Size/color variants, fragile goods, hazmat | Complex SKUs require slower picking and extra QC, raising labor minutes per order. |
| Warehouse Layout & Slotting | Fast movers near packing, zone picking | Poor slotting increases walk time; efficient layouts lower pick cost per order. |
| Packaging & DIM Strategy | Right-sized cartons, poly mailers, void fill | Bad cartonization inflates DIM weight, raising carrier charges even if pick fee is stable. |
| Automation & WMS | Scanner checks, cartonization rules, routing | Strong WMS reduces errors and rework, lowering effective pick & pack cost over time. |
| Service Level (SLA) | Same-day cut-off, weekend processing | Premium SLAs often come with higher pick & pack rates or surcharges during peak. |
Expert Analysis — WinsBS Research
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Maxwell Anderson, Editor-in-Chief & Data Director, WinsBS Research:
“For most brands, Pick & Pack looks like a small line item — $1.20 here, $1.80 there. But once you combine multi-line orders, seasonal volume, and rework from mispicks, it becomes one of the largest controllable costs in the fulfillment stack.
The biggest margin leaks we see are:
• inefficient layouts that add 30–50% extra walking time per picker
• lack of batch or wave picking for high-volume SKUs
• poor cartonization causing overpayment on DIM weight
• re-picks from error-prone manual checking instead of scanner verification
High-performing brands treat Pick & Pack as a designed workflow, not a black box. They measure ‘cost per shipped order’ weekly and align 3PL pricing with clear rules for lines, inserts, and VAS instead of opaque bundles.”
- Data-driven slotting and batch/wave picking for apparel, electronics, and subscription brands.
- Standardized packing rules to control DIM weight and reduce re-rated shipments.
- Integrated FBA prep, FBM/SFP, and Shopify fulfillment under one WMS.
- Order-level analytics to benchmark cost per shipped order across U.S. nodes.
Optimize your Pick & Pack workflow with WinsBS: Optimize Your Pick & Pack Workflow →
Critical Risk Terms for Pick & Pack (2025)
Pick & Pack FAQ — Common Questions
How are Pick & Pack fees usually calculated?
Most 3PLs charge a per-order Pick & Pack fee that includes the first item, plus a per-additional-item fee for extra lines. Complex packaging, inserts, or kitting are billed as Value-Added Services (VAS).
What is the difference between picking and packing?
Picking is locating and retrieving the correct items from inventory, while Packing is placing those items into a shipping-ready carton or mailer with labels and documentation. Both steps together form Pick & Pack.
How can I reduce my Pick & Pack costs?
You can reduce costs by optimizing SKU slotting, using batch picking for fast movers, improving cartonization to control DIM weight, and simplifying packaging rules. Clear SOPs also reduce rework from errors.
Is Pick & Pack different for FBA, FBM, and Shopify orders?
The core steps are similar, but FBA prep often requires extra labeling and compliance checks, FBM/SFP must meet strict ship-by times, and Shopify/DTC usually emphasizes branded packaging and inserts.
What metrics should I track for Pick & Pack performance?
Key metrics include cost per shipped order, mispick rate, on-time ship rate, lines picked per labor hour, and damages related to packaging. These indicators show whether your Pick & Pack workflow is efficient and reliable.
WinsBS Blog Insights
How to Cut Pick & Pack Cost per Order by 20%
Practical tactics for reducing pick labor, improving slotting, and tightening packaging rules without hurting customer experience.
Read the Guide →
Designing a WMS-Driven Pick & Pack Workflow
Learn how OMS/WMS integrations, routing rules, and barcode checks cut mispick rates for multi-warehouse operations.
Explore the Playbook →
From Cart to Carton: Mapping the Full Pick & Pack Journey
A step-by-step walkthrough from order capture to carrier handoff, with benchmarks for on-time shipping and error rates.
Read Full Workflow →Content Attribution & License
General definitions provided under the CC BY-SA 4.0 License.
All commentary, risk analysis, and fulfillment workflow insights labeled “WinsBS Research” are © WinsBS Research (2025) and licensed exclusively to WinsBS Wiki.
Information verified as of December 2025.
