Pick and pack services are third-party fulfillment operations in which a warehouse team receives your inventory, picks individual items from storage based on customer orders, packs them securely, and ships them directly to the end customer. For ecommerce brands and B2B distributors, outsourcing this process to a 3PL can reduce fulfillment labor costs by 20-30% while improving order accuracy to 99.5% or better.
What Are Pick and Pack Services?
Pick and pack is the core of order fulfillment. When a customer places an order, a warehouse associate (or automated system) locates the correct SKUs in the warehouse, picks them from the shelves, packs them into appropriate packaging, adds any inserts or branding materials, and hands them off to a carrier for shipping.
Third-party pick and pack providers — also called 3PLs (third-party logistics companies) — handle this entire process on your behalf. You send your inventory to their warehouse, integrate your ecommerce platform with their WMS (warehouse management system), and they handle everything from receiving to ship-out.
Pick and pack services are used by:
- Direct-to-consumer (DTC) ecommerce brands
- Amazon sellers needing FBM (Fulfilled by Merchant) support
- B2B distributors shipping to retail locations
- Subscription box companies
- Healthcare and medical device companies
How Does Pick and Pack Work? Step-by-Step
Understanding the process helps you evaluate a 3PL provider’s capabilities and identify where errors can occur.
Step 1: Inventory Receiving
Your products arrive at the 3PL warehouse via inbound freight or small parcel. The warehouse team inspects, counts, and logs every SKU into the warehouse management system (WMS). Accurate receiving is critical — errors here cascade through the entire fulfillment chain.
Step 2: Putaway and Storage
Items are assigned storage locations — bin, shelf, pallet, or rack — based on size, velocity (how often they’re ordered), and storage requirements. Fast-moving SKUs are placed in prime picking locations to reduce travel time.
Step 3: Order Download
When a customer places an order on your store (Shopify, WooCommerce, Amazon, etc.), the order data flows automatically into the 3PL’s WMS via integration. This triggers a pick ticket or wave.
Step 4: Picking
A picker receives their assignment — either on a handheld scanner, pick cart display, or printed sheet — and walks the warehouse to collect each item. Methods vary by operation:
- Discrete picking: One order at a time
- Batch picking: Multiple orders simultaneously, sorted after
- Zone picking: Pickers stay in their zone; items are consolidated
- Wave picking: Scheduled runs of large order volumes
Step 5: Packing
Once picked, orders are packed at a packing station. Packers select the right box or mailer, add protective materials (bubble wrap, void fill, dunnage), include packing slips or inserts, and seal the package. Some 3PLs offer custom branded packaging and kitting services.
Step 6: Shipping Label and Carrier Handoff
The WMS selects the best shipping carrier and service level based on your rules (lowest cost, fastest delivery, carrier preference). A label is printed and applied, and the package is sorted by carrier for pickup or drop-off.
Step 7: Tracking and Confirmation
Tracking numbers are automatically sent back to your ecommerce platform, triggering customer shipping confirmation emails. A good 3PL provides real-time visibility into order status.
Why Pick and Pack Matters for Ecommerce Brands
Labor is the single largest cost in ecommerce fulfillment — typically 50-65% of total fulfillment spend. Pick and pack is the most labor-intensive part of that process. Getting it right directly affects:
- Customer satisfaction: Wrong items, damaged packaging, and late shipments drive returns and negative reviews
- Profit margins: Inefficient pick paths, excess packaging, and rework eat into margins
- Scalability: Manual in-house fulfillment breaks down during peak season
- Returns rate: Poor pick accuracy increases costly reverse logistics
Outsourcing to a specialized 3PL gives you access to optimized warehouse layouts, trained staff, and carrier volume discounts that are nearly impossible to replicate in-house at small to mid scale.
What Does Pick and Pack Cost?
Pick and pack pricing varies by provider and service level, but here are the typical fee structures you’ll encounter in 2026:
| Fee Type | Typical Range | Notes |
|---|---|---|
| Receiving | $25-$50 per pallet | One-time inbound fee |
| Storage | $0.50-$2.00 per bin/month | Or per pallet/shelf |
| Pick fee (per unit) | $0.20-$0.75 per item | First item often higher |
| Pack fee | $1.00-$3.50 per order | Includes materials or billed separately |
| Shipping | Pass-through or marked up | Best 3PLs pass discounted rates |
| Kitting/assembly | $0.50-$2.00 per unit | Project-based pricing also common |
Total fulfillment cost per order for a standard ecommerce shipment (one item, standard box, ground shipping) typically ranges from $4.50 to $12.00 depending on package weight, zone, and service tier.
Brands shipping 500-5,000 orders per month typically see the most value from outsourcing — volume is high enough to justify 3PL minimums but not large enough to warrant building a private warehouse.
Pick and Pack vs. In-House Fulfillment
Many growing brands start with in-house fulfillment and eventually hit a breaking point. Here’s how the two options compare:
| Factor | In-House | 3PL Pick & Pack |
|---|---|---|
| Upfront cost | High (space, equipment, hiring) | Low (pay per order) |
| Scalability | Limited by space and staff | Scales on demand |
| Peak season | Costly overtime and temp staff | Handled by 3PL workforce |
| Carrier rates | Retail rates | Discounted volume rates |
| Control | Full visibility and control | Dependent on 3PL systems |
| Expertise | Build from scratch | Immediate access to expertise |
| Technology | Must buy or build WMS | 3PL WMS included |
The tipping point for most brands is when fulfillment labor starts consuming more than 20-25% of revenue, or when order errors and late shipments begin impacting customer retention.
How to Choose the Right Pick and Pack Partner
Not all 3PLs are equal. Here’s what to evaluate before signing a contract:
1. Location and Distribution Coverage
Warehouse location affects shipping speed and cost. A single warehouse in the Midwest covers most of the continental US within 2-3 days via ground. If you’re shipping heavily to both coasts, a bi-coastal footprint reduces transit times and shipping costs.
2. Technology and Integrations
Your 3PL should integrate natively with your ecommerce platform (Shopify, WooCommerce, Magento, Amazon, etc.) and provide a real-time dashboard for inventory visibility, order tracking, and reporting. Manual order entry is a red flag.
3. Accuracy Rates and SLAs
Ask for documented pick accuracy rates (look for 99.5%+) and on-time shipping SLAs. Get these in writing in your contract, along with how errors are handled and compensated.
4. Pricing Transparency
Avoid 3PLs with complex fee schedules full of hidden minimums, fuel surcharges, and “handling fees.” Ask for a full rate card and model your actual monthly cost before committing.
5. Scalability and Flexibility
Can they handle a 3x volume spike during Q4? Do they offer kitting, subscription box assembly, or B2B pallet shipping if your business evolves? Your 3PL should grow with you, not hold you back.
6. Communication and Support
You need a dedicated account contact — not a generic support ticket system. Ask how exceptions (damaged goods, inventory discrepancies, carrier claims) are handled and what your escalation path looks like.
How Cura Resource Group’s Pick and Pack Services Work
At Cura Resource Group, we provide pick and pack fulfillment for ecommerce brands and B2B distributors across the US. Our fulfillment center uses a WMS with real-time inventory visibility, native integrations with major ecommerce platforms, and dedicated account management for every client.
Our pick and pack process is built around three priorities: accuracy, speed, and transparency. Every order is scanned at pick and again at pack. Shipping labels are generated automatically based on your carrier and service rules. And you get real-time order status in your dashboard — no black-box fulfillment.
We also offer value-added services including kitting and assembly, custom branded packaging, subscription box fulfillment, and returns processing — all under one roof.
Whether you’re shipping 200 orders a month or 20,000, our team scales with your volume without long-term commitments or volume minimums that don’t fit your business.
To understand how our fulfillment center capabilities support the full logistics picture, see our guide: Fulfillment Center vs. Warehouse: The Complete 2026 Guide.
Ready to get a quote? Contact our team and we’ll build a custom fulfillment proposal for your business within 24 hours.
Frequently Asked Questions About Pick and Pack Services
What is pick and pack in logistics?
Pick and pack is the process of selecting individual items from warehouse storage based on customer orders, packaging them appropriately, and preparing them for shipment. It is the core operational function of ecommerce order fulfillment.
How much do pick and pack services cost?
Costs vary by provider, but typical pricing includes a per-order pack fee ($1.00-$3.50), a per-item pick fee ($0.20-$0.75), plus storage and receiving fees. Most ecommerce brands pay between $4.50 and $12.00 per fulfilled order all-in, depending on weight, zone, and packaging.
What is the difference between pick and pack and fulfillment?
Pick and pack refers specifically to the warehouse process of selecting and packaging individual orders. Fulfillment is the broader term that encompasses the entire order-to-delivery process, including inventory receiving, storage, pick and pack, shipping, and returns management.
Is pick and pack worth it for small ecommerce businesses?
For brands shipping fewer than 100-200 orders per month, in-house fulfillment may be more cost-effective. However, once you exceed that threshold — or experience frequent stockouts, shipping errors, or peak-season overwhelm — outsourcing to a 3PL typically reduces costs and improves customer experience.
How do I integrate my Shopify store with a pick and pack provider?
Most 3PLs offer direct Shopify integrations via app or API. Once connected, orders flow automatically from your store into the 3PL’s WMS in real time, and tracking information is pushed back to Shopify when orders ship. Setup typically takes 1-3 business days.
What accuracy rate should I expect from a pick and pack service?
Best-in-class 3PLs achieve 99.5% pick accuracy or better. This means fewer than 5 errors per 1,000 orders. Ask any provider for their documented accuracy rate and what their error resolution process looks like before signing a contract.
Can pick and pack services handle kitting and custom packaging?
Yes. Many 3PLs offer kitting (assembling multiple SKUs into a single product set), subscription box assembly, custom branded packaging, and insert inclusion. These services are typically priced separately from standard pick and pack rates.
What should I look for in a pick and pack SLA?
Key SLA elements include: same-day or next-day order cutoff times, guaranteed pick accuracy percentages, on-time shipment rates, and defined remedies for errors (replacement units, refunded fees, etc.). Always get SLAs in writing as part of your 3PL contract.
