2022 Best Guide: How to Choose a Fulfillment Warehouse Location
Are you looking for the best fulfillment center? Learning the aspect of pricing and eCommerce store integration is not enough. You also have to consider its location. Unfortunately, most merchants neglect this area, not realizing its significant impact. So, let’s learn how to choose a fulfillment warehouse location.
Consider Customer’s Location
Before hunting a fulfillment warehouse, map out where most of your customers are. Check it out based on the areas with a majority of the deliveries. Identify if you’re serving customers in a particular city. Are there buyers across the country or even on the other side of the world?
Waiting for a week or more for an order to arrive is agony. Both the seller and the buyer feel frustrated. What more if the items are received after a month? It’s pretty disappointing, isn’t it?
But with the proper fulfillment warehouse location, every customer is within reach. Plus, you can cater to more buyers at the best performance.
Look Out for Competitors
Aside from customers, check other sellers too. Do a SWOT Analysis. It checks out your possible competitors’ Strengths, Weaknesses, Opportunities, and Threats. Learning how many they are and how well they perform matters. It provides rich insights into how the business can withstand the competition.
Also, review other merchants’ fulfillment services. Study the transit times they offered to customers. Is it within your target regions? Do they have faster delivery options? Figure out whether your competitors will affect your venture. You can foresee losing sales to the competition. If this happens, choose a better fulfillment warehouse location.
Take this as an example. Your fulfillment provider only takes 1 to 3 days to deliver. Meanwhile, your competitor reaches 3 to 5 days to be received. Then, you’re at an advantage. But if not, your business is at risk.
Examine the Products
Another factor to consider is the product type. Staple products available in the general market demand a quicker transit. Some goods require special handling, which calls for a shorter shipping time frame. However, specialty or homemade products need a higher transit time, like more than a week.
An eCommerce with a shorter transit time boosts up the business. If your customers’ sold items serve as gifts, receiving them ahead of time is a big plus. That’s how great an impact a wise selection of fulfillment warehouse location is.
Also, consider the stock inventory based on the location. For example, if you sell surfboards and underwater gadgets, sell them near the coasts. Meanwhile, keep a supply of heavy jackets and coats near winter areas.
Offer Free Shipping
The shipping cost is a major factor for most buyers. Nobody wants to pay an excessive amount for the delivery fee. So, when you choose a fulfillment warehouse location, ask them if they provide free shipping.
Make sure that your business won’t shoulder the large free shipping bills. So, find a fulfillment provider with multiple 3PL strategies. It keeps the shipping rates based on zones. UPS and FedEx work like this.
Keep in mind that distance plays a significant role in the shipping fee. Thus, a fulfillment warehouse with a lesser gap to the customer means fewer zones you have to cross and pay. If you want more marketing ideas you can marketdoxa.com. You will get to know how to advertise your free shipping the right way.
Provide Secure Packaging
The first thing customers comment upon receiving their package is the physical aspect. A battered brown box with worn-out tape leaves unimpressive feedback. But a brown box covered with bubble wraps creates an excellent impression. But, of course, that’s just the outer part.
Once the buyers open their package, they see that all items are intact. A safely boxed item won’t have a dent or damage. Plus, it works perfectly fine. So, when you choose a fulfillment warehouse, see their ability to pack. Also, ask if they can customize packing.
Proper and secure packaging helps build brand recognition. It helps to encourage loyal brand advocates and gain more followers. Plus, it assists your shop in tailoring the first customer tangible experience.
Accurate Inventory Management
The previous factors are vital when choosing the best location of the fulfillment warehouse. But don’t forget to review their capacity to manage inventory. Then, with increasing demand, make sure that your fulfillment center has a plan.
Ask them specific questions. Are there enough stocks available to cater to all the orders? Will the products reach where they need to be? Are the items readily accessible when they need to be?
Once you have the answers, it will help you decide whether to proceed with partnering with them or not. Keep in mind that inventory management software is a great deal. It provides excellent assistance when it comes to documenting the seasonality of sales. This way, shipping bulk inventory from one fulfillment center to another is avoidable. Thus, saving you from the expenses of shipping oversized pallets.
Excellent Multi-warehouse Strategy
Shipment of orders on time and across the whole country is possible. All thanks to the multi-warehouse strategy. So, when you search for a fulfillment warehouse, clarify if they offer this type of service. If they do, grab the opportunity.
With a multi-warehouse strategy, you can serve more customers even across the globe. Shipping the client’s orders at almost every target location is attainable. Buyers within the closer range of the warehouse fulfillment are at an advantage. They receive their package within two business days.
A great example of this is the Red Stag. The company functions by accomplishing orders to the entire country quickly with Red Stag expedited shipping. It placed two fulfillment warehouses strategically to deliver faster at cheaper shipping costs. Also, Red Stag collaborates with every client. Thus, they could develop the best fulfillment strategy. It means they can cater to all eCommerce businesses.
Location is as important as the prices and eCommerce integration. Sad to say, not all see its significance when growing their venture. But now that you know its remarkable impact, you’re wiser than other business owners. So, if you opt for better revenue, consider this tiny yet fundamental detail.
To narrow down your options, take note of this quick guide. It provides a checklist when choosing a fulfillment warehouse location.