As order volume grows, small inefficiencies in shipping can start to compound in unexpected ways. Last-mile delivery accounts for up to 53% of total supply chain costs. When products ship long distances from a single warehouse, those costs compound quickly, especially as order volume grows.

Why More Warehouses Can Mean Lower Costs

The goal of multi-warehouse fulfillment isn’t adding expense; it’s reducing it. By placing inventory closer to customers, sellers dramatically cut last-mile shipping distances, which directly lowers per-order shipping spend.

An added benefit? Faster shipping options convert better. Customers are more likely to complete a purchase when delivery times are shorter and more predictable.

Faster Shipping Without Expensive Air Freight

When inventory is regionally distributed, two-day shipping often becomes possible using ground transportation rather than air. That shift alone can significantly reduce fulfillment costs while meeting customer expectations.

Make a Data-driven Decision

Multi-warehouse fulfillment works when it’s data-driven. When done correctly, it reduces shipping spend, improves margins, and creates a better buying experience, without relying on premium shipping methods.