Articles in this section

How to Set Up Picking Fees in 3PL Billing

Picking fees charge your client per shipped line item when an order ships with a carrier label. They support a tiered rate structure with up to four charge components — a first pick rate, a remainder rate, optional tiered ranges, and an optional additional SKU rate — and can be scoped to specific product profiles and order profiles.

For an overview of all available fee types, see Overview: 3PL Billing Fees. For orders fulfilled without a shipping label, see How to Set Up Pickup Picking Fees in 3PL Billing. For how charges are calculated at bill time, see How Picking Fees Are Calculated in 3PL Billing.

Before You Begin

Picking fees are configured inside a billing profile — the set of fees assigned to a specific 3PL client. To apply different rates for specific product types, set up product profiles first. See How to Use Product Profiles in 3PL Billing and How ShipHero Applies Fees to Products in 3PL Billing.

Table of Contents

How to Set Up Picking Fees in 3PL Billing

  1. Go to 3PL Billing > Billing Profiles and select a billing profile.
  2. Select the Fees tab.
  3. Click Shipments > Add Fee > Picking Fee.
  4. Enter the First Pick Rate and Remainder Pick Rate. Both are required.
  5. Configure any additional rate components or scoping options. See Picking Fee Rate Structure and Picking Fee Optional Configuration below.
  6. Click Save.

    Picking fee configuration screen

Pro Tip

Click the "Show fee applied example" to view an example of picking fees as they would appear on a generated bill:

Example of applied picking fees on a client bill

Picking Fee Rate Structure

Picking fees use a tiered rate structure with up to four charge components. The first is required — the others are optional and additive.

Component What It Charges
First Pick Rate Charged for the first SKU picked in each product profile group.
Remainder Pick Rate Charged for all remaining items beyond the first pick, and for any items outside defined picking ranges.
Additional Line Iten (SKU) Rate Charged for the first item of each additional SKU within a product profile group. Only applies when additional SKU charging is enabled.
Picking Ranges Tiered rates defined by a start position, end position, and rate. When an item falls within a range, ShipHero charges that range's rate instead of the remainder rate. When an item falls outside all defined ranges, ShipHero applies the remainder rate.

Updating Picking Ranges Replaces All Existing Ranges

When you update picking ranges on an existing fee, ShipHero discards the entire existing list and saves only the new ranges. Always include the full set of ranges when making updates.

Picking Fee Optional Configuration

Field Description
Product profiles Scopes the fee to orders containing products assigned to the specified profiles. Items in other profiles are handled by other fees or left uncharged.
Applies to products without a profile Charges items whose product has no profile assigned. See Understanding Product Profile Matching for 3PL Billing Fees.
Order profiles Restricts the fee to orders with specific profiles. When omitted, the fee applies to all orders.
Charge additional SKU Enables an extra charge for the first item of each new SKU within a product profile group. ShipHero enables this automatically when you enter an additional SKU rate.
Charge kits as single pick When enabled, ShipHero counts a kit as a single pick rather than counting each component separately. When disabled (default), each kit component counts as a separate pick.

How to View Shipped Line Items

Picking fees are based on shipped line items. Use the following steps to verify what will be charged.

View Shipped Line Items on a Single Order

  1. Open the Order's Details page in the ShipHero dashboard view. 
  2. Scroll down and hover over the Shipments section on the right side to see the quantity of line items shipped.
Shipments section on order details page showing shipped line item quantity

Export All Shipped Line Items for Picking Fees

  1. Go to Reports > Shipped Items.
  2. Use the filters to narrow by date, carrier, label status, or other criteria.
  3. Click Export all Rows to download the report.

This report shows clients exactly which line items will be charged for picking at the end of the billing period.

More Resources

  • ShipHero Public API

    Connect your tools and AI agents directly to ShipHero with the Public API. Build powerful integrations, automate workflows, and tap into real-time data using the AI tools you prefer, with the option for secure, read-only access for AI-driven insights without added risk.

  • ShipHero Academy

    Explore ShipHero Academy for certifications, deep-dive training, and expert-led courses on WMS and fulfillment. Build your expertise and help your team operate at a higher level.

  • Change Log

    Stay up to date with the latest improvements across ShipHero. The Change Log gives you a clear view of new features, enhancements, and fixes as they roll out—so you always know what’s new and what’s better.