How much WMS software costs and how to set your budget

We often get asked: How much will a warehouse management system cost?

Vendors aren't always forthcoming with their pricing, which can make it difficult when determining how much you can expect to pay for your WMS. Although your system cost isn't the only consideration, many different factors can cause your WMS budgets to shift significantly.

We've created this step-by-step guide on how much WMS costs to assist you in creating your budget for your next selection project. 

Always seek out multiple bids for your project, and work closely with vendors to understand your needs and which features will meet them. This step-by-step guide covers costs associated with WMS selection and implementation from start to finish, including:

1. WMS pricing models and deployment options
2. Calculating WMS installation costs
3. Deciding on which WMS features you need
4. Figuring out any hidden costs
5. Bringing your WMS budget together [infographic]

Our WMS cost information comes from conversations with vendors, consultants, and WMS users and publicly available information from WMS vendors. Costs quoted should be used as an estimate, as each project is different.

1. Consider which WMS pricing model you need

The vast majority of WMS will fall into one of two pricing models: perpetual licensing or a subscription model (typically monthly). Both initial budgets and annual budgets will shift based on the deployment model you select.

The biggest differentiator that most warehouses will find between these two models is that a perpetual license is commonly used with on-premise solutions, while the subscription model operates in the Software-as-a-Service (SaaS) model and uses the cloud for some of your data storage or processing.

Another important pricing consideration is how users are licensed. Some WMS vendors charge per named user (each individual user account needs a license), while others use concurrent user licensing (charging by the number of users simultaneously logged in). This distinction can significantly impact your cost.

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Covering the key issues faced by businesses selecting and implementing WMS.

Your first year is likely the most expensive due to costs associated with installation, configuration, and training, even when considering maintenance and upkeep costs.

SaaS subscription

Entry-level SaaS WMS pricing typically starts at $100-$200 per user/month, or roughly $500 per facility. Mid-tier systems often cost $200-$300 per user, or $1,000-$1,500 per warehouse.

Enterprise-grade solutions with advanced features range from $400-$500+ per user, with some costing $5,000 per facility or more.

Use our comprehensive WMS pricing guide to estimate initial WMS cost and inform budgeting decisions

Subscription plans will often have a small upfront cost, with many free-trial options and cost reductions for the first six months to one year. The goal for vendors is to secure your business and have you learn the platform at a reduced rate.

Based on industry comparisons and vendor reports, total monthly pricing for SaaS WMS commonly ranges from ~$2,000 for small businesses to over $10,000 for large multi-user operations. These fees often include base platform access in addition to per-user licensing.

What about integration services?

The good news is that integration with your platforms and those of your customers is usually covered during this low-cost phase, creating significant savings (at least in the short term) to on-premise solutions, which require customization. 

"It is important to discuss pricing changes with vendors and budget for that jump ahead of time"

Installation and general setup also fall into this initial bucket and are typically kept low so that a SaaS provider can keep you as a customer after the trial period ends.

In most cases, the more users you pay for, the more cost-efficient these services become.

Expect WMS costs to jump after introductory periods or trials; always budget for these increases. Many WMS solutions bundle in other products, like CRMs or labor optimization tools, adding to the overall expense.

The cost for these extra features can vary widely. Finally, some subscriptions require purchasing user licenses in blocks, meaning you might pay for more than you need. Prioritize scalable options that let you buy only the licenses required.

Perpetual licenses

Software packages that rely on a perpetual license fee structure often have significantly higher upfront costs because you’re purchasing the software outright. In these models, your vendor is getting the bulk of their payment from you on the front end, so recurring service costs tend to be small and related to options, upgrades, and support.

Entry-level perpetual license WMS typically ranges from $2,500-$10,000 per facility, suitable for basic inventory support. Mid-tier operations generally range from $10,000-$50,000, while enterprise-grade systems may reach $200,000+, especially those with robotics integration or advanced analytics.

"Your entry-level WMS with a perpetual license will start at around $2,500 per facility"

If your WMS integrates with annually updated software like QuickBooks, ensure your license includes WMS upgrades to maintain compatibility.

Maintenance fees for perpetual models typically range from 10% to 20% of the license cost per year.

Below: Table showing initial WMS cost for on-premise and SaaS deployments:

Initial costs will be high, so if you’re planning on trying out multiple WMS or expect your operations to shift, or if more customers are moving to an e-commerce model, on-premise may not be right for you. Installation and integration also come with a higher ticket price for on-premise software due to the infrastructure required.

There’s usually a break-even point for a perpetual license and subscription model between years five and seven (though this can vary).

A few major WMS vendors offer perpetual license models on a per-application-user basis, with a minimum number of users required for purchase, similar to a subscription model.

2. Calculate any WMS installation costs

When budgeting for your new WMS, be aware that installation and setup can contribute significantly to your overall spend. These services are often billed separately from the license or subscription pricing.

Installation and customization

WMS implementation costs have risen in recent years, especially for mid-size and enterprise deployments. The table below reflects recent figures sourced from recent vendor guides, analyst reports, and market reviews.

On-premise solutions still require a higher upfront investment due to infrastructure, but cloud WMS projects increasingly include substantial configuration and integration costs (especially in mid-market and enterprise use cases). These ranges include onboarding, integration, process configuration, and initial training.

Maintenance and support

Ongoing maintenance is another vital cost. Perpetual-license on-premise systems typically charge 10-20% of the license value annually for maintenance, with increases over time.

SaaS vendors often bundle support in the subscription, but premium tiers (e.g. dedicated success managers or 24/7 support) may add 5-10% to annual spend.

Find WMS vendors offering the maintenance package you need with our completely up-to-date WMS vendor directory

Typical costs for annual support are summarized below:

These figures are estimates that reflect typical cost expectations but may vary based on verticals, scope, and vendor licensing models.

3. Decide which WMS features you need

There are some functions of a warehouse management system that are supported in most core implementations, but many are only found in mid-range or enterprise systems. 

Table showing examples of entry-level, mid-range, and enterprise WMS features

Typically, you’ll pay more as your WMS supports more of these features. Treat these items as options for a checklist you might want to bring to potential vendor partners to see what support they provide.

Get advice on creating a WMS requirements shortlist with our step-by-step WMS selection survival guide

4. Forecast for any ‘hidden’ WMS costs

Training your staff

You should expect to have three to five days of training for your staff on the new warehouse management system. This will allow you to train in shifts and give teams time to practice and come back with questions while training teams or services are available.

"Adopting a new WMS may come at a time of growth, so be sure to include a budget for training new team members as well as providing additional training each year to existing staff"

Vendor training options vary: on-site visits, vendor training centers, or self-study materials like webinars and custom documentation tailored to your needs.

A new WMS often means growth, so budget for both new hires and ongoing annual training for existing staff.

Hands-on training typically costs $3,000-$5,000 per team for a single location (yours or theirs). Factor in additional costs if multiple sites need training, and confirm class size limits with your vendor.

Vendors offering digital learning with phone/email support have lower overhead. Expect an average cost of roughly $2,000 for your team's first year.

Improving your infrastructure

Your existing equipment may not work best with your WMS. This is especially true for old IT infrastructure for on-premise solutions and old scanning or barcode equipment when using new SaaS models.

On-premise solutions may require upgrades for your database servers, networking hardware, and the PCs running your WMS. If you’re purchasing a newer warehouse management system, expect it to have a higher level of equipment requirements.

Hosted models save you the trouble of not needing additional server hardware, but they will require a computer with mid-level specs as well as a reliable, fast Internet connection. Big purchases in this arena often come from backup systems customers layer on top of their cloud storage. Many businesses want to have a local copy of their data so that operations don’t grind to a halt if connectivity is lost.

General IT staff time

Like infrastructure spending, the IT staff and maintenance element is hard to predict because it depends on your system, the scope of your licensing or use, and the capabilities of your IT team.

You will need to allow your IT staff time to maintain and update your system periodically, which can also include consulting fees and business costs to educate your team on proper maintenance.

The time it takes and the amount spent can vary significantly, so the big takeaway here is to understand that your IT staff will have new responsibilities with your WMS and need to be given time to see to these duties.

Using your data

Big Data is a core focus for companies looking to run more efficiently. It is present in a number of WMS functionalities, from optimizing inventory and picking to choosing shipping lanes and consolidating loads. However, some WMS users have noted that they require additional software or staff time to run advanced analytics and generate valuable insight.

Typically, you will need a larger budget for analytics platforms, either to pay for it as an add-on to your service or for a more robust offering.

Enterprise-level platforms include analytics and asset management in their feature list more often, but many of the small and mid-sized tools either offer basic analysis functionality or export your data in file formats that other analytics tools and engines can use.

5. Bring together your WMS budget

The size of your overall operation and your annual budget will likely have the biggest implications for your WMS costs.

If you are running a single warehouse operation, then you can expect to pay a higher per-warehouse cost for your WMS, both cloud and on-premise, but a lower total cost than competitors who have two or more warehouses. On average, total WMS costs for you likely will stay under $1,500 per month for the first year for a cloud system, and under $42,000 (or $3,500 per month) for a perpetual license service.

However, if you’re running only a small WMS for a single location and a single user, without many of the bells and whistles mentioned so far, your WMS costs could be as low as $1,500 to $2,000 for the entire first year.

"True enterprise-level systems can easily eclipse $100,000 for your first year if you’re managing multiple sites and need infrastructure improvements at each."

As you move up to multiple warehouses and mid-tier enterprise revenues, implementation and infrastructure fees may rise as high as $10,000, while your solution itself can cost as much as $75,000 for the first year. True enterprise-level systems can easily eclipse $100,000 for your first year if you’re managing multiple sites and need infrastructure improvements at each.

Both vendors and users noted that prices can range significantly in the industry and that it is best to seek out multiple bids based on specific needs. Features that you can designate as 'must-have' versus 'like-to-have' may make your selection process simpler and easier to keep in line with your overall budget.