Online Order Fulfillment
Order fulfillment business has created a shortage in warehouse space across the U.S. Even with the trade wars, the e-commerce business continues to grow. Retailers and Logistics Companies are constantly looking for warehouse space to lease cheap warehousing space to use for storage and order fulfillment.
As order fulfillment domestically is very competitive, retailers and 3PL Companies need to watch their cost.
Most retailers want to have distribution centers in more than one city so that that can satisfy different markets faster. We could all learn a lesson from Amazon.
As more small businesses start offering products online while outsourcing their fulfillment Services to Third Party Logistics Companies the need for warehouse space grows.
Online Order Fulfillment and 3PL Companies
As the need for outsources space grows, 3PL Providers, start looking for cheap warehouse space. The demand is high and the competition is strong, that is why 3PL’s look for space in cities where the rent is still affordable.
The cost of owning a warehouse is high, that is why companies lease the space. They need the flexibility of being able to relocate quickly and have multiple locations in different cities. That is why the building of commercial warehouse space is soaring. This trend might slow down by the year end as the warehousing market reaches the saturation point. We just have to wait and see how this affects the pricing.
There are a lot of companies that started doing their own fulfillment using a third party warehouse as it is cheaper that using Amazon. They have worked with Amazon and benefited from all the exposure Amazon gives them. They believe that it is time to do it themselves. That is why fulfillment centers are still doing well.
Resources;
Order fulfillment Centers in Miami
Omni Channel fulfillment in Miami
