Storage is the line on a 3PL invoice that grows quietly. This guide covers how warehouses in the Los Angeles area bill it, what changes the price, and how to keep it small, with a real rate from our Carson warehouse.
- Storage is billed by space occupied, not by unit
- Our published rate: $22 per pallet per month
- Slow-moving inventory is what makes storage expensive
- Ask about bin and shelf rates for small items
How pallet storage is billed
Most 3PLs charge a monthly fee per pallet position. Small products are often stored on shelves or in bins instead, billed per shelf or bin. Some providers bill by cubic foot. In every model you pay for the space your stock occupies, not for the number of units.
Check when the count is taken. Some warehouses bill on the highest pallet count of the month, others on an average or on a single snapshot date.
A real example from Carson
Our published storage rate is $22 per pallet per month, and smaller items can sit in bins or on shelves instead. A brand holding six pallets pays $132 a month for storage. Cycle counting and low-stock alerts are included, secure caged storage is available, and there is no long-term commitment.
Because our warehouse sits in Carson, minutes from the Ports of Los Angeles and Long Beach, imported containers reach the dock quickly and stock becomes sellable sooner, which keeps the number of pallets you need to hold lower.
What drives storage cost up
The main driver is inventory that does not move. A brand that sells through its stock every month pays little for storage; a brand holding a year of slow sellers pays for that space every month.
- Over-ordering ahead of a season that sells slower than planned
- Long-tail SKUs that sell a few units a month
- Oversized or irregular items that use a full pallet position
- Long-term storage surcharges on aged inventory at some providers
How to keep storage small
Order closer to demand, review aged inventory every month, and move slow SKUs from pallets to shelves or bins when their stock is low. Ask your 3PL for a monthly storage report by SKU so the slow movers are visible.