Do you Need a New Distribution Center?

Industry competition, customer expectations, and annual shipping rate increases seem to be driving up the costs of operating an ecommerce business more and more. Fulfillment services and distribution are a big part of your business that contributes to the bottom line. Superior fulfillment services mean that shipping costs and delivery times are reduced – attracting new customers, more repeat purchases, and increased revenue. Of course, expanding your distribution centers can be easier said than done.

Opening a new distribution center can be rife with unforeseen expenses. Questions that ecommerce businesses may forget to ask themselves while scouting potential new distribution centers include:

  • Does the state or county charge sales or inventory taxes?
  • Increasing your fulfillment footprint creates customer demand. How much more inventory will you need to order?
  • Can your order management system incorporate a new distribution center?
  • How will your workforce change? Will some managers move to the new center, or will you hire a whole new workforce?

With these questions in mind, you may not want to invest the money and time into research that this type of expansion requires – at least not yet. However, third-party fulfillment may be the solution you need. You can reduce transit times, cut shipping costs, and increase sales without taking on the risk of opening and operating a whole other distribution center. At Fulfillment Works, we utilize customized solutions to provide clients with full service fulfillment including data entry, order processing, product fulfillment, inventory control, storage, pick and pack, EDI services, kit building, customized packaging, and much more. Contact us to learn how we can help with your distribution goals.

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