When looking for a fulfillment warehouse, you need to take several factors into consideration:
Some say: location, location, location because it all comes down to the distance to your customers. You want your products to be delivered quickly. It doesn’t have to be your local fulfillment warehouse located next to where you live. Nowaday it is quite easy to sell your products online on the other part of the world. A fulfillment center that’s close to your customers will serve your business better than one that’s close to you.
Don’t spread your products among too many warehouses – your costs will go up and most probably, you will have to deal with different tax regimes. It is also hard to coordinate your stock between multiple warehouses and establish effective sales and delivery patterns.
3 Delivery time
Online shoppers expect to receive their products within a couple of days and at a low cost. Ecommerce fulfillment warehouse can move your goods closer to your clients which will allow you to offer same-day shipping or even delivery within a matter of couple of hours.
4 Shipping costs
Shipping rates are based on so called – zones. The greater the distance between your fulfillment warehouse and your customer, the more zones your package will have to cross, the higher your shipping costs will be. Choose your warehouse close to your customers to save on shipping and fulfillment costs.
Consider asking yourself the following questions before talking to your fulfillment warehouse provider:
What do my customers want and expect?
How imporatant is same day dispatch for me and my clients?
Do I want to offer free shipping?
What is the most economical choice?