Shipping costs, delivery speed, and customer expectations are rising, all at the same time. For growing e-commerce brands, the question is no longer if distribution needs to evolve, but when. As order volume increases and customer bases become more geographically concentrated, a single-warehouse strategy can quietly erode margins and slow growth. This is where a multi-warehouse distribution model becomes a strategic advantage.

Many successful multi-warehouse expansions begin with a single strategic move: establishing a West Coast fulfillment facility in Southern California. Southern California is often the most practical addition to an East Coast base of operations because it immediately reduces shipping costs, improves delivery speed, and brings inventory closer to a dense concentration of U.S. customers.

When Southern California Becomes a Smart Next Step

Adding a Southern California warehouse makes sense when one or more of the following conditions apply:

​You’ve Reached Sustainable Order Volume

​Businesses that reach the tipping point of over 5,000 orders monthly should consider expanding to a multi-warehouse system. At this level, shipping savings outweigh the cost of holding inventory at a second location.

​You’re Shipping Meaningful Volume to the West Coast

​If a substantial portion of your orders ship to Western states, fulfilling those orders from the East Coast can quietly inflate costs. If more than 70% of your orders ship to this location, consider a second location even before you hit 5,000 orders per month.

Your Products Require Specialized Handling

​Certain products with specific handling needs can also benefit from a second location, even with a lower monthly order volume. Heavy items requiring freight shipping, perishables, or items with regional compliance requirements can justify moving inventory to multiple facilities.

Why Location Matters

​Storing and shipping products in Southern California brings your product closer to West Coast residents, who make up a sizable portion of your customer base. California is the most populous U.S. state with approximately 39.5 million people. That equates to 1 out of every 8 people in the country.

Using a facility in this region will significantly reduce your shipping costs by lowering average shipping zones, especially for West Coast orders that would otherwise ship from the East Coast. California sits in zone 8 for many carriers, and fulfilling those orders locally can dramatically reduce per-unit shipping expenses.

In practical terms, we estimate savings of $10-$15 per order for certain clients using a West Coast location. Beyond cost savings, closer proximity to customers also improves delivery speed.​

Rancho Dominguez Facility: A Partner You Can Trust

​Sweetwater Logistics partners with a reliable facility in Rancho Dominguez, California, to provide service to this key region. They were selected as an outstanding option for our global network because of these three key indicators:

1. Performance

Over 2.5 million orders were shipped from this facility in 2025. Of these orders, 99.99% were accurate and delivered on-time. This benchmark is one most shippers aspire to, but few achieve.

2. Retail Expertise

Their expertise extends beyond direct to consumer (DTC) to include big-box retail customers. They had less than $1,500 in chargebacks company-wide in 2025. This is a clear signal of operational excellence and compliance with retailers.

3. Legacy

Our Rancho Dominguez partner has over 30 years of experience in logistics fulfillment. With solid operational excellence, they’ve also demonstrated thought leadership and innovation in warehouse technology as the original creators of Extensiv. Their elite operation is driven by enterprise-level processes.

Scale Nationally Without the Burden of Building It Yourself

​Expanding to a multi-warehouse fulfillment strategy doesn’t mean reinventing your business or taking on massive capital risk. With Sweetwater Logistics’ global network, you gain access to strategically positioned facilities, like our trusted Southern California partner, without the complexity of building and managing your own infrastructure.

​By reducing shipping zones, improving delivery times, and maintaining operational excellence across locations, we help you scale smarter, not harder. Sweetwater serves as your single point of contact, coordinating inventory, technology, and fulfillment across North America so you can stay focused on growth, customer acquisition, and brand momentum. To learn more about how this facility could complement your current strategy, reserve a time to talk.