How Much Does WMS Software Cost?

• WMS software, or a Warehouse Management System, is used by warehouse workers to handle activities such as barcode scanning, inventory tracking, order processing, receiving, put away, picking, and packing. 

• WMS software comes in two main pricing models: cloud-based (averaging $100-$500 per user, per month) and on-premises (ranging from $2,500-200,000 per facility for a perpetual license).  

• Factors influencing WMS pricing include implementation, the number of users, and the features and capabilities offered. 

• Free WMS software options are available; they often come with limitations and are meant to entice users to upgrade to paid versions with more advanced features and capabilities. 

WMS software can range significantly in cost and often comes in two different pricing models: cloud-based and on-premises. We are using US dollars for pricing information in this article.

Generally, cloud-based warehouse management software will be based on an annual/monthly license fee or subscription. The monthly cost of a cloud-based WMS can range from $100-500 per user per month, depending on organizational size and complexity. 

On an annual/monthly subscription pricing model, teams will pay fees based on the number of warehouses, the number of users, and any add-on features or modules. You’ll find some additional costs for implementation, ongoing support, and transactional fees may be charged. 

This benefits those looking for a more scalable and flexible solution, helping them save on the expensive pricing of the more traditional on-premises WMS models. It’s also better for those who wish to access their WMS from anywhere without worrying about being responsible for the security and overhead of maintaining servers. 

On-premises or licensed WMS models will be a one-time fixed rate that organizations pay up front, plus an annual maintenance charge that ranges from 10-20% of the license costs. 

You can find prices ranging from $2,500-$200,000 per facility for a perpetual license for on-premises WMS software. The pricing is based on each WMS category, customer/company needs, features, capabilities, integrations, and more. 

This benefits large enterprise organizations with little business volatility. These businesses have on-site operations and want total control and responsibility over the servers, custom enhancements, and cybersecurity. An on-premises WMS is best for businesses that can manage a large up-front payment and want to pay lower ongoing costs over time. 

The business that benefits from choosing a Descartes cloud-based WMS and pricing model is looking for a flexible and easily scalable solution that can grow with its business. Leaders want the value of an enterprise-level WMS without the overhead or security concerns of an on-premise/licensed WMS, and they want more robust warehouse functionality than a free WMS can offer. 

 What we’ve learned from this article: 

1. Cloud-based WMS Software generally costs $100-500 per user monthly. 

2. On-premise WMS software costs around $2,500-200,000 and often comes with annual/monthly maintenance and support fees. 

3. Implementation fees, add-ons, and the number of users will significantly affect pricing. 

4. Many software companies will offer different paid WMS models to fit various-sized organizations. 

5. There are free WMS software options, but they are usually limited versions of a paid WMS, with the end goal for ecommerce businesses to sign up for the paid version. 

Do you have more questions? Click the button below, and a Descartes warehouse management system expert will contact you.