Sweetwater Logistics

Charlotte, North Carolina is one of the strongest fulfillment hubs in the country but it’s not always the final step for growing e-commerce brands. From this single hub, e-commerce sellers can reach 80% of the contiguous US population within two days using ground shipping, a major advantage for global brands. For many businesses, Charlotte isn’t the final step. It’s the foundation.

As order volumes grow and customers expect faster delivery, more sellers are turning to multi-warehouse fulfillment to reduce costs, improve delivery times, and compete at a national level without adding unnecessary complexity. The key is knowing when expansion makes sense, which locations drive results, and how to execute it without overcommitting capital or inventory.

3PL providers like Sweetwater Logistics simplify the process through a global network of warehouses. They serve as a single point of contact for multiple locations, coordinating the strategy, data, technology, and execution.

In this guide, we answer the most common questions e-commerce sellers ask before adding additional warehouses so you can decide if, when, and how multi-warehouse fulfillment fits your business.

1. Why should I consider using a global network?

A global fulfillment network gives e-commerce sellers a smarter way to scale without adding operational complexity. Instead of relying on a single warehouse to serve your customer base, inventory is strategically placed closer to where demand actually exists.

The primary advantages are lower fulfillment costs and faster, more predictable delivery. Shorter shipping distances reduce last-mile expenses, while also decreasing the likelihood of delays caused by weather, carrier congestion, or regional disruptions.

2. Will multiple warehouses increase or lower my costs?

The ultimate goal of shipping from multiple warehouses is to reduce what you spend on fulfillment. When you place your product closer to your customer, you’ll reduce your ‘last mile’ shipping expenses, which account for up to 53% of total supply chain costs. As an added bonus, you’ll capture more sales since you’ll be able to offer faster shipping to your customers.

3. How much faster will my customers receive their shipments if I use a multi-warehouse system? 

Delivery time improvements depend on where your customers are located and where inventory is placed. Here is a common example: if your customer is in Oregon, and your product is shipped from the East Coast then you’ll have a longer delivery time. But if your product is shipped from the West Coast, your delivery time can be reduced by 2-3 days.

In addition to consistently faster shipping, you and your customer will experience other benefits. With shorter distances for deliveries, delays are minimized. And, when it’s realistic, you’ll be able to offer 2-day shipping without using air freight, typically the most expensive transportation mode. 

4. When does multi-warehouse fulfillment make sense for my business?

The “right time” to begin a multi-warehouse fulfillment system is different for every seller. Often, sellers begin when they have around 500-1,000 orders per month. However, elements beyond order volume also play a role. For example, sellers shipping heavier items can see a cost advantage with far lower monthly volume. 

5. How do you decide which additional warehouses to add and how much inventory to send to each location?

Your current 3PL provider should provide you with the data you need to make an informed decision. At Sweetwater Logistics, we gather past order volumes by SKU and destination zip code to make the call. We have a system to identify the most appropriate SKUs and quantities to place in each facility. In some cases, it’s best to add one facility; in others, a combination of facilities provides the best economies and coverage.

6. How does order processing work behind the scenes?

The best multi-warehouse networks are ones that business owners don’t have to manage themselves. With a global network, your 3PL should provide you with inventory visibility across all locations and automatically make the determination for you on which facility is the most efficient to ship from.

At Sweetwater Logistics, we have the technology to route your orders to the warehouse closest to your customer. Returns are typically routed to Charlotte for processing, but they can always be sent back to the sending facility if desired. Since we take each scenario on a case by case basis, we set up the system that works best for our client.

7. Can I expand without overcommitting?

Gradual, data-driven expansion is the lowest-risk approach to the implementation of a multi-network fulfillment. The proper data will inform when, where, and how to approach expansion for your business. In some cases, adding one facility is a perfect first step.

Scale Fulfillment the Smart Way

High shipping costs to certain regions, customer complaints about shipping speed, and plans for growth are indicators that your business could benefit from a global network.

Multi-warehouse fulfillment isn’t an all-or-nothing decision. The most successful e-commerce brands expand deliberately, guided by real order data, regional demand, and clearly defined performance goals.

Sweetwater Logistics helps sellers take this step with confidence, starting small, validating results, and expanding only when the data supports it. With one partner, one point of contact, and a network built to scale, you don’t have to choose between growth and control.

Reach out to us to learn more about how the global network can support your business.