E-tailers may have a leg up on their bricks and mortar counterparts in that they don’t need expensive, public-facing real estate to be able to sell their wares.
But selling virtually can still get expensive. The savings that E-tailers reap by not needing retail space can be eaten up quickly by warehousing, distribution, fulfillment, and shipping expenses. That’s why a low cost fulfillment location is essential.
To find the lowest-cost fulfillment option for your E-tail operations — ask yourself:
- Where do we want to physically locate our inventory?
- How far is this inventory going to be from our customers?
- What main transportation hubs are nearby? (Example: for imported products, establishing a transload/warehouse facility near a port means lower drayage costs)
- How will labor and real estate costs impact our bottom line? (Space and labor costs may be more expensive near major cities)
- What local or state regulations will impact my selection and how will they impact my business?
7 Reasons Eastern North Carolina is a Great Low Cost Fulfillment Option
To ensure top efficiency, low cost fulfillment, and the best possible profit margins, a growing number of E-tailers are looking at Eastern North Carolina fulfillment warehouses along the I-95 Corridor. Here are some reasons why:
- Centralized warehouse location.
You want a centrally located warehouse to minimize shipping time and costs. Kanban’s North Carolina fulfillment center is halfway between Boston and Miami, with an ability to hit major East Coast population centers within one day.
- Minimize investment in inventory.
By finding a partner that can manage both your B2C and B2B fulfillment center requirements from the same location, you’ll be able to reduce inventory and overhead costs.
- Lower labor costs.
According to the Bureau of Labor Statistics, the Rocky Mount, NC region has one of the lowest wage rates in the Mid-Atlantic region for warehouse workers, compared to markets like Hampton Roads, Raleigh-Durham, Atlanta, Charlotte, and Greenville, SC.
- Lower space costs.
Average net rental rates in the Rocky Mount/Tarboro NC area are less than those reported, by Cushman & Wakefield in 2015, for the same markets noted above. There is a reason why large B2C shippers like QVC do fulfillment from Rocky Mount, NC
- Access value-added services.
Kanban’s modern warehouses are temperature-controlled, rail-sided, and include North Carolina FTZ capabilities.
- Reach every major East Coast market via ground in one day.
Kanban’s five-DC campus is located minutes from interstate 95.
- Right-size your fulfillment operation.
The size of your operation should match the size of your business. Look for a way to start small and then expand as your business grows within a variable cost environment. At Kanban’s North Carolina fulfillment center, for example, we help growing e-tailers scale up as needed, paying only for the space and services they require based on sales volume.
To survive, online businesses must aggressively manage overhead costs. Finding a low cost fulfillment option is an important part of that strategy.
