Should you run your own warehouse or outsource fulfilment to a third-party logistics provider (3PL)? The answer depends on your volumes, your products and where your customers are. This guide breaks down the real cost components of in-house fulfilment and a 3PL in Europe, shows how labour and space costs differ by country, and gives a simple way to compare the two.
Quick answer: In-house fulfilment has high fixed costs (rent, equipment, systems, management) and low variable costs once volumes are high. A 3PL turns most of those costs into variable fees per pallet, order and item. For most growing eCommerce brands, and anyone selling in several countries, a 3PL is cheaper and more flexible; in-house usually only wins at large, stable volumes in one location.
What in-house fulfilment really costs
| Cost | What it includes | Fixed or variable |
|---|---|---|
| Space | Rent or ownership, service charges, utilities, insurance | Fixed |
| Labour | Pickers, packers, receiving, returns, team leads, peak temps | Mostly fixed, with peaks |
| Equipment | Racking, forklifts, scanners, packing stations | Fixed (capital) |
| Systems | Warehouse management system, integrations, IT support | Fixed |
| Packaging and shipping | Boxes, fillers, labels, carrier rates | Variable |
| Management and risk | Hiring, training, compliance, unused capacity in quiet months | Hidden, fixed |
What a 3PL charges
| Fee | Typical basis |
|---|---|
| Inbound / receiving | Per pallet, carton or hour |
| Storage | Per pallet, shelf or cubic metre per month |
| Pick & pack | Per order plus per additional item |
| Packaging | Per box or at cost |
| Shipping | Per parcel or pallet, often at the 3PL’s negotiated carrier rates |
| Returns and value-added services | Per return, per kit, per hour |
| Set-up / integration | One-off or free |
Labour and space costs differ widely across Europe
Labour is usually the biggest cost in a fulfilment operation, and it varies more than twofold across the EU. In 2025, average hourly labour costs ranged from about €19 in Poland to almost €48 in the Netherlands.
Eurostat, hourly labour costs in the whole economy, 2025.
Warehouse space shows similar gaps. In Germany, CBRE put the average prime logistics rent across the top-5 hubs at €9.21 per m² per month in Q1 2026, while space in Poland and the Baltics is typically cheaper. See our market reports for Germany, Poland and Sweden.
How to compare: a simple model
- Add up your monthly fixed costs in-house: rent, salaried staff, systems, equipment depreciation and management time.
- Add your variable costs per order: picking labour, packaging and shipping.
- Get 3PL quotes for the same volumes: storage, pick & pack per order and item, and shipping.
- Compare at three volume levels: today, peak month and your 2-year target.
- Add the strategic factors: number of countries, delivery speed, seasonality and how much management time you want to spend on logistics.
Illustrative example (assumed figures): a brand shipping 3,000 orders a month pays €8,000 a month in fixed in-house costs (space, two staff, systems) plus €1.50 per order in packing labour and materials, so about €4.17 per order before shipping. A 3PL charging €2.60 per order all-in plus €400 storage comes to about €2.73 per order. If volumes grew to 15,000 orders a month with the same fixed costs, the in-house cost per order would fall to about €2.03, close to the 3PL. Real numbers vary: run the model with your own quotes.
When in-house makes sense
- Large, stable volumes from one location, with little seasonality.
- Highly specialised products or processes that are hard to hand over.
- Logistics as a core part of your customer proposition, with the team to run it.
When a 3PL makes sense
- Growing or seasonal volumes, where fixed costs would sit idle in quiet months.
- Selling in several countries, where one in-house warehouse means slow, expensive cross-border delivery.
- Marketplace delivery promises (Amazon, Zalando, Allegro) that require fast, reliable dispatch.
- Limited capital, or a team that should focus on product and marketing.
Hybrid models
Many brands combine both: an in-house operation in their home country plus a 3PL for other markets, or a 3PL for B2C parcels while B2B pallets ship from their own site. With a multi-warehouse 3PL network you can start in one country and add others as demand grows, without opening new sites yourself.
Related: our warehouse locations · Warehouse planning guide · What is multi-warehousing?
Frequently asked questions
Is a 3PL cheaper than in-house fulfilment?
For most growing eCommerce brands, yes, because a 3PL turns fixed costs into variable fees and shares space, staff and carrier rates across many clients. In-house can be cheaper at large, stable volumes in one location.
What are typical 3PL fees?
Receiving per pallet or carton, storage per pallet or cubic metre per month, pick and pack per order and item, packaging, shipping per parcel, and fees for returns and value-added services.
How much do labour costs vary in Europe?
A lot. Eurostat’s 2025 figures show average hourly labour costs of about €19 in Poland and €21 in Estonia, against €45 in Germany and almost €48 in the Netherlands.
When should I switch from in-house to a 3PL?
Typically when you outgrow your space, expand to new countries, struggle with peaks, or when logistics takes too much management time away from growth.
Can I use a 3PL in several countries?
Yes. A multi-warehouse 3PL lets you store stock close to customers in several countries and manage it all on one platform.
Sources
Figures are taken from the sources below and were checked in September 2026. Market estimates from research firms are labelled as estimates in the text.
