
Jump right in: How to Choose a Local Warehouse for eCommerce and When to Look Elsewhere
- Introduction
- Researching and Finding Local Warehouses
- Understanding Different Types of Warehouses
- Factors to Consider When Choosing a Warehouse
- Benefits of a Strategically Located Warehouse Over a Local Warehouse
- Challenges of Relying Solely on Local Warehouses
- Transitioning from Local Warehousing to a 3PL
- How to Choose the Right 3PL Partner
- Summary
For ecommerce businesses, choosing the right warehouse is a strategic move that can significantly impact your operations, customer satisfaction, and bottom line. Many online sellers instinctively gravitate towards finding local warehouses for ecommerce, assuming proximity equals efficiency. However, this isn’t always the best option.
Imagine you’re an ecommerce seller in San Francisco, shipping nationwide. A local warehouse might seem convenient, but consider the time and cost to send an order to New York. Instead, a strategically located warehouse, perhaps an ecommerce warehouse in the Midwest, can offer faster delivery times and reduced shipping costs, enhancing customer satisfaction and boosting your competitive edge.
In this guide, we’ll explore various warehouse options, from local to strategically placed 3PLs, and help you determine the best fit for your business. We’ll also discuss why a local warehouse might not always be the best choice and how strategically located warehouses can offer superior benefits, especially if you’re aiming for growth beyond your local market.
Let’s dive into the essentials of finding and choosing the right warehouse for your ecommerce business, ensuring your operations are streamlined and your customers delighted.
Researching and Finding Local Warehouses for eCommerce

Online Directories and Listings
Start your search with online directories. Platforms like Google Maps, Yelp, and Yellow Pages can quickly show you nearby warehouses. Simply input “warehouses near me” or “ecommerce warehousing” into the search bar, and you’ll get a list of potential facilities complete with reviews, ratings, and contact information. This is a great way to get an initial overview of what’s available in your area.
Industry-Specific Directories
For a more targeted search, use industry-specific directories such as ThomasNet and Fulfillmentmarketplace.com. These websites specialize in listing logistics and warehousing services, providing detailed profiles on each facility. You can filter results based on your specific needs, such as the type of goods you store or special services like climate control.
Networking and Referrals
Leverage your professional network for recommendations. Join industry groups on LinkedIn or eCommerce Reddit Communities dedicated to ecommerce and logistics. Ask fellow business owners about their experiences with local warehouses. Word-of-mouth referrals can lead you to reliable options that you might not find through online searches.
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Site Visits and Inspections
Once you’ve identified potential warehouses, arrange visits to inspect them in person. This hands-on approach allows you to assess the facilities’ conditions, security measures, and operational efficiency. Look for signs of good management, such as organized storage areas and clear labeling systems. Meeting the staff can also give you a sense of their expertise and customer service quality.

Local Chambers of Commerce
Utilize the resources of your local Chamber of Commerce. These organizations often have comprehensive lists of businesses, including local warehouses for ecommerce, and can provide referrals and additional information about the facilities. They might also host networking events where you can meet warehouse operators and other business owners who have valuable insights.
Understanding Different Types of Warehouses

Understanding these different types of warehouses helps you choose the right one based on your business needs, budget, and operational goals. Whether you need advanced technology, cost-effective solutions, or specialized storage, there’s a warehouse type that fits your requirements.
Warehouse Type | Description |
---|---|
Fulfillment Centers | Short-term storage for direct-to-customer shipping. Typically used by ecommerce businesses to manage order fulfillment efficiently. |
Distribution Centers | Serve as intermediaries in the supply chain. Often used in industries like grocery to store goods temporarily before they move to the next stage. |
Public Warehouses | Owned by third parties and leased out to multiple companies. They are cost-effective but may lack customization. |
Private Warehouses | Owned by a single company and customized to meet specific needs. Ideal for businesses with large volumes and unique storage requirements. |
Cooperative Warehouses | Jointly owned by multiple businesses. They offer shared resources and often provide discounted rates to members. |
Smart Warehouses | Utilize advanced technology like AI and robotics to optimize operations, improving efficiency and reducing errors. |
Consolidation Warehouses | Combine shipments from multiple suppliers to reduce shipping costs. Ideal for businesses looking to minimize transportation expenses. |
Government Warehouses | Owned by government entities, these warehouses offer secure and affordable storage options. Often used for essential goods and materials. |
Factors to Consider When Choosing a Warehouse

Business Needs
Your local ecommerce warehouse choice should align with your business needs. Evaluate your order volume, storage space, scalability, and shipping requirements. For example, if you handle large volumes of orders, you need a warehouse that can accommodate high inventory levels and facilitate quick, efficient processing. A study by the National Retail Federation found that 39% of consumers expect free, two-day shipping. To meet these expectations, your warehouse must handle high turnover rates and ensure timely delivery.
Budget
Budget is a critical factor. Consider both upfront costs and ongoing operational expenses. Renting a public warehouse might be more affordable than owning a private one, but it could come with additional fulfillment fees. Research from Commercial Edge Group indicates that warehouse rental rates in the U.S. have increased by 7.5% annually over the past five years. Balancing cost-effectiveness with operational efficiency is crucial for maintaining profitability.

Scalability and Flexibility
Your warehouse should grow with your business. Seasonal fluctuations and unexpected demand spikes require scalable solutions. For instance, during the holiday season, ecommerce sales can surge by over 30%, according to and article in Growth Gazette. A flexible warehouse setup can accommodate manage peak season fulfillment, ensuring you don’t miss out on potential sales.
Expertise and Resources
Effective warehouse management demands expertise. If you lack experience in logistics, consider outsourcing to a 3PL. These providers offer specialized skills and resources, enhancing efficiency. The Warehousing Education and Research Council reports that companies using 3PLs experience an average logistics cost reduction of 13% and a 9% improvement in order fill rates.

Location and Customer Reach
Strategically located warehouses allow businesses to set up distribution centers that can serve multiple regions. This approach ensures that products are stored closer to the end customers, significantly reducing transit times. For instance, having a centrally located warehouse in the United States can ensure that orders are shipped to customers on either coast quickly, optimizing delivery routes and times.
Technology and Integration
A robust warehouse management system (WMS) is essential. It tracks inventory, optimizes workflows, and integrates seamlessly with your ecommerce platform. Integration with your ecommerce platform ensures real-time inventory updates, reducing the risk of stockouts and overselling.
Choosing the right warehouse involves balancing these factors to align with your business goals and customer expectations. By carefully evaluating your needs, budget, scalability, expertise, location, and technology, you can find a warehouse solution that supports your ecommerce success.
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Benefits of a Strategically Located Warehouse Over a Local Warehouse for eCommerce
Consider the example of a growing apparel brand based in California. Initially, their local warehouse for ecommerce met all their needs. However, as their customer base expanded nationwide, they faced significant challenges. Shipping to the East Coast took longer and cost more, leading to customer dissatisfaction. By transitioning to a 3PL with warehouses in a strategic location like Michigan, they reduced shipping times, cut costs, and improved overall customer satisfaction.

Faster Shipping
Strategically located warehouses are positioned near major customer bases, ensuring quicker delivery times. For instance, a warehouse in the Midwest can ship to both coasts more efficiently than one located only on one coast. According to a study by Voxware, 69% of consumers are less likely to shop with a retailer again if an order isn’t delivered within two days of the promised date. Faster shipping not only meets consumer expectations but also enhances customer loyalty.
Cost Efficiency
Reduced shipping costs are another significant benefit. By optimizing delivery routes and minimizing travel distances, strategically placed warehouses can lower transportation expenses. The Department of Transportation reports that transportation costs make up nearly 40% of total logistics costs. With strategically located warehouses, you can benefit from lower shipping rates and reduced fuel expenses, crucial for maintaining competitive pricing and boosting profit margins.
- Optimized Routes: Shorter delivery distances.
- Reduced Fuel Costs: Less travel means less fuel consumption.
- Lower Shipping Rates: Proximity to transportation hubs.

Scalability
Easier scalability is essential for managing business growth and peak seasons. Strategically located warehouses can accommodate increased order volumes without compromising efficiency. Deloitte’s research indicates that scalable logistics solutions can enhance operational efficiency by up to 30%. This flexibility is particularly beneficial during high-demand periods, such as the holiday season, when order volumes surge.
Advanced Technology
Strategically located warehouses often leverage advanced technology to enhance efficiency. Automated picking systems, real-time inventory tracking, and integrated warehouse management systems (WMS) are common features. Zebra Technologies found that businesses using advanced warehouse technology see a 25% improvement in order accuracy and a 20% increase in productivity. These technologies streamline operations, reduce errors, and improve customer satisfaction.
- Automated Picking Systems: Speed up the order fulfillment process.
- Real-Time Inventory Tracking: Enhances accuracy and prevents stockouts.
- Integrated WMS: Optimizes warehouse operations.
Transitioning from Local Warehousing to a 3PL

Example of Business Transition: Ample Foods
Ample Foods, a meal replacement and nutrition company, experienced significant improvements by transitioning from a local warehouse to a 3PL. Initially relying on a single West Coast facility, Ample Foods struggled with long shipping times and high costs for their growing customer base.
Benefits Realized
1. Improved Shipping Times
By partnering with a 3PL, Ample Foods expanded into a second fulfillment center. This strategic move allowed them to offer 65% of their customers two-day shipping, up from 32%. The goal is to eventually reach 100% of customers with this expedited shipping option. Faster delivery not only enhances customer satisfaction but also positions the brand competitively in the market.
2. Cost Savings
Transitioning to a 3PL led to a 13% savings on the bottom line for Ample Foods. The 3PL’s ability to negotiate better shipping rates and distribute inventory across multiple locations helped reduce overall logistics costs. This cost efficiency is crucial for maintaining competitive pricing and improving profit margins.
3. Increased Customer Satisfaction
With the enhanced shipping capabilities and reduced costs, customer satisfaction saw a significant boost. Customers benefited from quicker deliveries and more reliable service, leading to higher repeat purchase rates and improved brand loyalty.

Overview of the Transition Process
1. Evaluation and Selection
Instead of only relying on local warehouses for eCommerce, Ample Foods began by assessing various 3PL providers, focusing on those with strategically located warehouses and advanced technology for inventory and order management. They selected a provider that could seamlessly integrate with their existing ecommerce platform, ensuring smooth operations.
2. Implementation and Integration
The next step involved integrating their ecommerce systems with the 3PL’s warehouse management system (WMS). This integration provided real-time tracking and automated order processing, crucial for maintaining inventory accuracy and efficiency.
3. Expansion and Optimization
Ample Foods gradually shifted their inventory to the new fulfillment centers. They started with the most frequently ordered items to ensure minimal disruption to their operations. As they expanded, they optimized their inventory distribution based on sales data, further reducing shipping times and costs.
Key Takeaways
- Strategic Location Matters: Placing inventory in strategically located warehouses significantly reduces shipping times and costs, improving customer satisfaction.
- Cost Efficiency: Leveraging the 3PL’s scale and expertise leads to substantial cost savings, enabling businesses to invest more in core activities like marketing and product development.
- Customer Experience: Faster and more reliable shipping enhances the overall customer experience, driving loyalty and repeat purchases.
- Technology Integration: Seamless integration between ecommerce platforms and the 3PL’s WMS is vital for maintaining operational efficiency and inventory accuracy.
By partnering with a 3PL, Ample Foods not only streamlined their logistics but also positioned themselves for sustainable growth and success in the competitive ecommerce market.
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How to Choose the Right 3PL Partner

Research and Comparison
Start by evaluating different 3PL providers based on their services, technology, and reputation. Look for comprehensive solutions including warehousing, inventory management, order fulfillment, and shipping. Compare their reputations through reviews, case studies, and testimonials on platforms like Trustpilot and Gartner Peer Insights. Reach out to industry peers for recommendations.
Integration Capabilities
Ensure the 3PL can integrate seamlessly with your ecommerce platform, such as Shopify, BigCommerce, or WooCommerce. This integration allows for automated order processing and real-time inventory updates. Check if the 3PL offers APIs or pre-built integrations that facilitate easy connectivity.
Customer Support
Responsive and knowledgeable customer support is crucial. Evaluate the 3PL’s support services by looking at response times, availability, and expertise. Opt for 3PLs that offer 24/7 support and dedicated account managers. Customer reviews and case studies can provide insights into the quality of their support.
Scalability and Flexibility
Your 3PL should be able to grow with your business. Evaluate their capacity to scale operations for seasonal spikes or long-term growth. Look for 3PLs with a broad distribution network to ensure quick product delivery. For example, Ample Foods expanded their fulfillment operations with a 3PL, resulting in faster shipping and reduced costs.
For a more detailed guide, check out our full blog post on choosing a fulfillment service: Choosing a Fulfillment Service: Ecommerce Sellers Guide.
Summary
Choosing the right warehouse solution is crucial for your ecommerce business’s success. While local warehouses might seem convenient initially, strategically located warehouses and 3PLs offer significant advantages. These include faster shipping times, cost efficiency, scalability, and access to advanced technology.
Key Points Recap:
- Understand Your Needs: Assess order volume, storage space, and shipping requirements.
- Evaluate Costs: Consider both upfront and operational expenses to find a cost-effective solution.
- Scalability: Ensure the warehouse can handle growth and seasonal fluctuations.
- Expertise and Resources: Choose a solution that offers professional logistics management.
- Location Matters: Strategically placed warehouses reduce shipping times and costs.
- Technology Integration: A robust warehouse management system (WMS) enhances efficiency and accuracy.
Benefits of Strategically Located Warehouses and 3PLs:
- Faster Shipping: Proximity to major customer bases for quicker delivery.
- Cost Efficiency: Optimized routes and reduced shipping costs.
- Scalability: Ability to manage growth and peak seasons effectively.
- Advanced Technology: Enhanced inventory management and order fulfillment.
Carefully evaluate your business needs and choose a warehouse solution that supports long-term growth and efficiency. For more detailed guidance, read our full blog post: Choosing a Fulfillment Service: Ecommerce Sellers Guide.
Hello Management,
I’m interested in renting your storage or warehouse space, and I’m wondering if you could help me with the instructions below.
1) Assist in package delivery
2) Assist with labor
3) Assist with adhering labels to packages so that my shipping company can come for a pickup at your facility.
I’ll need you to get back to me with the total cost plus labor so that we can move forward.
Thank you very much.
Daniel Muro.