AutoStore has launched what is believed to be the first pay-per-pick service. The new offering will lower the entry price point to help retailers meet the growing need for more efficient warehouse operations and faster customer delivery.  

AutoStore has signed a global distribution partnership agreement with THG Ingenuity, part of THG PLC, the direct-to-consumer digital brands group. THG Ingenuity will provide AutoStore technology on a pay-per-pick model embedded alongside Ingenuity’s proprietary warehouse management, courier and optimisation software, broadening the addressable market for AutoStore. 

“We have seen rising demand for volume-based pricing and more flexible payment terms for customers,” says Mats Hovland Vikse, CEO at AutoStore. “Today, more than 80% of warehouses globally have no automation whatsoever. We believe that the pay-per-pick model will further differentiate us and our integrator partners in the market and unlock new demand for order-fulfillment automation.”

The new AutoStore pay-per-pick model is based on an upfront payment for the warehouse grid infrastructure and a recurring subscription fee for robots, ports and software based on order volume. 

“We look at the pay-per-pick model as a 'win-win-win' solution. As demand curves shift, this alternative pricing model can provide extra protection for customers and the ability to scale up or down with minimal effort. For us, and AutoStore, recurring subscriptions provide increased visibility and predictable revenue,” says John Gallemore, executive director and chief operating officer at THG.

AutoStore has 23 partnership agreements worldwide; THG Ingenuity is the first to be implemented on a pay-per-pick model. 

The new service model is available to all partners and customers.