Fulfilment Cost Math — When 3PL Beats Your Garage

11 min · interactive · Advanced

A 3PL costs $8-15 per order in fulfilment fees. Your garage costs $0. So why do dropshippers use 3PLs? Because the time, error rate, scaling capacity, and tax-deductible cost compound to favour 3PLs structurally. The math reverses below 50 orders/month and above 10,000 orders/month — but for the middle range that includes most operators, 3PL beats DIY decisively. Today: when 3PL math wins, when DIY math wins.

The full-cost comparison

When operators compare 3PL vs DIY warehousing, they often only compare the per-order fee. The full picture includes:

3PL costs (per order, 3PL averaged):

Receiving: .50-3.50
Storage: $0.30-0.60/unit/month
Pick: $0.40-1.20
Pack: $0.80-1.80
Carrier: $5.50-12.00
Total per order: $8.50-19.10

DIY costs (per order, your garage/spare room):

Warehouse space: $0 (using your home; opportunity cost varies)
Operator time: 5-15 minutes per pick + pack at $30-60/hour value =