Why does a central location matter so much?
The distance your orders need to travel to get to customers has a direct impact on costs. Longer delivery means more drive time and more expenses to keep the trucks on the road.
Your fulfillment center should be as centrally located in the U.S. as possible to minimize your shipping costs. This optimizes the average distance of your shipments, and optimizes your shipping expenses. It’s important to keep in mind when searching for a fulfillment and shipping company that you actually are paying shipping twice on every item you have (inbound cost of getting your products to your warehouse, and the cost of shipping it out to customers).
A central location not only lowers shipping costs, but also improves transit times, and we all know that the faster a product arrives to a customer, a happier customer we will have.
If you’re not sold on the transit times benefit, did you know that doing business is less expensive in the mid-part of the country when compared to the east and west coasts? Midwest rent and wages are lower & much of the cost of fulfilling customer orders is labor. A lower hourly labor cost means lower per order fulfillment cost which is a good thing for you.
Finally, real state is overall less expensive in parts of the Midwest. The cost of storing your products is a large part of operating an ecommerce website and lower rent means lower costs for storage.
Choosing the right location to store and ship your orders is one of the most important decisions you will make about your ecommerce operation.
Contact Port City Fulfillment to learn more about the benefits of using our centrally located fulfillment center.