WarehousingAndFulfullment.com released the results of its 2024 Warehousing Services Pricing and Fulfillment Costs Survey, which showed a steep rise in costs from 2022 t0 2024.

The results reflect eight years of research from 2017 to 2024, conducted confidentially to encourage honest responses from warehouse operators.

The survey shows performance metrics and industry trends, with most respondents from the U.S. (95.24%) and a smaller group from Canada (4.76%) offering insights from both markets. In 2024, 85% of warehouses tracked their performance, down from 89% in 2023, indicating a slight decline in performance monitoring.

Warehouse Costs

According to survey results, the cost per-square-foot of warehouse space increased from $7.96 in 2022 to $8.22 in 2023 and $8.31 in 2024, likely due to inflation or rising demand. Despite recent increases in commercial real estate vacancy rates, occupancy rates for warehouses remain low, contributing to higher rents.

The average hourly wage for warehouse staff rose sharply to $16.95 in 2024, up from $14.97 in 2022 and $15.78 in 2023, highlighting rising labor costs.

Considering rising costs, the average corporate profit percentage decreased to 9.37% in 2024 from 10.49% in 2023 and 10.58% in 2022, emphasizing a tightening margin.

WarehousingAndFulfillment summarized that, in a typical warehouse scenario with 100,000 square feet, 10 management staff and 20 warehouse staff working 2,000 hours annually, the total cost increase from 2022 to 2024 totaled $159,720 — an 8.31% rise.

Warehouse Pricing and Discounts

The percentage of warehouses enforcing monthly minimum requirements has slightly dropped from 48% in 2023 to 46.67% in 2024, while the average minimum requirement has significantly increased.

For pick and pack pricing, B2C fulfillment services saw an average increase to $3.18 per single-item order. In B2B, costs rose from $4.31 to $4.79.

Additionally, fewer warehouses included box fees in fulfillment charges, decreasing from 71% in 2023 to 31.48% in 2024, with an average markup of 16%.

To read more about the survey, click here.