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How Picking Fees are Calculated in 3PL Billing

Picking fees in 3PL Billing are charged per shipped line item. ShipHero automatically selects a billing strategy at bill time based on fulfillment status— understanding this logic helps you configure fees that charge correctly for every order. This article covers billing strategies, charge sequencing, kit handling, and where picking fees appear in ShipHero.

For setup steps and rate structure, see How to Set Up Picking Fees in 3PL Billing.

Table of Contents

Picking Fee Billing Strategies

When a bill is tallied, ShipHero automatically charges a picking fee based on the order fulfillment state and determines which line items are used to calculate the pick charge.

Order Condition Strategy Used
Partial fulfillment allowed Charges based on shipped line items only.
Single shipment, no voided labels Standard path — charges based on shipped line items.
Voided labels + fulfilled order Uses order line items instead of shipped line items.

How Picking Fee Charges Are Sequenced

For each qualifying order, ShipHero generates picking fee charges in the following sequence:

  1. First Pick Charge — 1 unit at the first pick rate for the first item in each product profile group.
  2. Pick Within Range Charges — for items falling within a defined picking range, charged at that range's rate.
  3. Pick Remainder Charges — for all remaining items outside defined ranges, charged at the remainder pick rate.
  4. Additional SKU Charges — if enabled, 1 unit at the additional SKU rate for the first item of each new SKU within the profile group.

Picking Fee Behavioral Notes

Behavior Details
Product profile scoping If product profiles are assigned to the fee, only shipment line items whose products belong to those profiles generate a charge. Items in other profiles are handled by other fees or left uncharged.
Order profile scoping If order profiles are configured, the fee only fires on orders with matching profiles.
Voided labels excluded Shipped line items associated with a voided shipping label are always skipped.
Kit handling By default, each kit component counts as an individual pick. Enabling Charge kits as single pick on the fee counts the whole kit as one pick instead.
Additional SKU auto-enable Additional SKU charging is automatically enabled when an additional SKU rate is provided on the fee.

More Resources

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