For eCommerce startups, fulfillment strategy is a shifting target. If you start small, your first warehouse could be your garage or even a spare bedroom. As you grow, you might rent warehouse space and hire staff to pick, pack, and ship your orders. Eventually, you’ll probably outsource your storage and shipping to a third-party logistics provider.
When you choose your fulfillment provider, an important consideration is the location. You need fulfillment warehouses close enough to your customers to get your products delivered quickly. But you don’t want to spread your products among too many warehouses, or your inventory cost can go up. Here is a guide to help you develop your fulfillment warehouse plan.
Where Are Your Customers?
The strategy for where to locate your eCommerce fulfillment will largely depend on where your customers are. Map where your eCommerce orders are being delivered. Are your customers centered in certain areas or spread out evenly across the country? Answers to these questions will help you determine the best fulfillment warehouse locations for your business.
We’re in the age of two-day shipping to even the same day in a lot of our nation’s cities. If your e-commerce site delivers through Amazon or eBay or competes with those platforms, fast delivery is a must. eCommerce is moving closer to offering consumers the satisfaction of getting a purchase right away. As usual, Amazon leads the trend with one-day and even same-day shipping. In the future, an Amazon drone may drop off your purchase within a couple of hours.
Our Location Strategy
At Taylor, we’ve established our warehouses and fulfillment centers in the prime area of Cincinnati, Ohio. The strategic placement of our warehouses and fulfillment centers allows us access to large and rapidly-growing consumer and customer bases. The proximity of the many interstates and expressways branching from the city of Cincinnati is incredibly advantageous for moving both national and international freight. 70% of the US population is less than 24 hours’ drive.
Cincinnati has three interstate highway systems I-75, I-74, and I-71 as well as two interstate connectors I-275 and I-471
Cincinnati/ Northern Kentucky International Airport (CVG) is a key cargo destination with nine carriers
Amazon’s Prime Air Hub is located at CVG
Cincinnati is the nation’s largest inland port handling 220 million tons of cargo per year
Talk with Taylor
Fulfillment may not be the most exciting part of your eCommerce business plan, but it’s one of the most important. When your e-commerce supply chain is running smoothly, so is your business. Please chat with us today!