Question 1

How much does pick and pack cost per order?

Accepted Answer

Pick and pack costs typically range from $2-$6 per order for in-house operations and $3-$8 per order at a 3PL. This includes labor ($0.50-$1.50 per order), boxes/mailers ($0.75-$2.00), void fill ($0.20-$0.50), tape/labels ($0.15-$0.30), and custom inserts ($0.20-$0.75). Multi-item orders cost more due to additional picks. Overhead (rent, equipment) adds $0.30-$1.00 per order depending on volume.

Question 2

How many orders can one person pack per hour?

Accepted Answer

A trained packer can typically fulfill 20-35 single-item orders per hour, or 15-25 multi-item orders per hour. This means 2-3 minutes per order on average. Factors that affect speed: number of items per order, warehouse layout, whether you use batch picking, barcode scanning, and the complexity of packaging (custom boxes vs poly mailers). Top operations achieve 40+ orders/hour with optimized stations.

Question 3

What percentage of revenue should pick and pack cost?

Accepted Answer

Pick and pack (excluding shipping) should be under 5-8% of revenue. Under 5% is excellent. For a $55 AOV, that means pick & pack should cost under $2.75-$4.40 per order. If it's above 10%, either your AOV is too low or your operation needs optimization. The biggest lever is increasing AOV — at $100 AOV, the same $4 pick-pack cost drops from 7.3% to 4% of revenue.

Question 4

How do I reduce pick and pack errors?

Accepted Answer

Five proven methods: 1) Barcode scanning — scan each item to verify it matches the order. 2) Photo verification — photograph packed orders before sealing. 3) Pick-to-light systems — lights guide pickers to the correct bin. 4) Checklists — printed pick lists with item images. 5) Quality spot checks — audit 5-10% of orders daily. The industry benchmark error rate is under 1%. Each error costs $10-$15+ in rework, re-shipping, and customer service time.

Question 5

Should I use poly mailers or boxes?

Accepted Answer

Poly mailers cost $0.15-$0.40 each vs $0.75-$2.00 for boxes. They also weigh less (reducing shipping cost) and pack faster (no taping, no void fill). Use poly mailers for: soft goods, clothing, accessories, small flat items. Use boxes for: fragile items, multi-item orders, products that need protection. Many brands use poly mailers for 60-80% of orders and boxes only when needed — saving $0.50-$1.50 per order.

Category	Monthly	Per Order	% of Total
Labor	$576	$0.72	19%
Boxes / MailersHighest	$880	$1.10	28%
Void Fill / Dunnage	$280	$0.35	9%
Tape / Labels / Slips	$200	$0.25	6%
Custom Inserts	$320	$0.40	10%
QC Errors / Rework	$192	$0.24	6%
Rent + Equipment	$650	$0.81	21%
Total	$3,098	$3.87	100%

Pick-and-Pack Cost Calculator

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