Things that impact warehouse site selection for online retail

Choosing the best warehouse for an online store is not an easy job. There are plenty of things that impact warehouse site selection for online retail. Your customer base, supply network, and transportation costs will be just some of these factors. Before hiring the best cargo services in Jeddah take a look at things you should know before renting a warehouse for your online retail.

Supply network

While your goods are safe in the warehouse, more of it will be arriving from your suppliers. This is why warehouse site selection for online retail is not always easy to handle. Once you know where your supplies and goods will be coming from, it will be easier to choose a warehouse site for your needs.

shipping dock
When choosing a warehouse site, make sure to calculate your shipping costs.

The customers

Depending on the customer base you’re dealing with you will have a few warehouse site options to choose from. For example, if you are operating in the Middle East, you could choose the best warehouse Jeddah has to offer. In case you are working internationally, there will be plenty of things that will impact your warehouse site selection for online retail. What you should have in mind is the primary location of the majority of your customers. For example, if you are selling products to people in Europe, you will have to rent a warehouse that will be located on this continent. Luckily, online retail has one upside – online selling is more efficient than handling stores in a few different locations.

Transportation proximity

Even though online selling has its upsides, the transportation proximity will impact your warehouse selection for online retail. Depending on the type of goods you are selling, you might need to use a few different shipping methods and pay for cargo transport services. So, if you choose a warehouse that requires weeks of shipping for your customers, it could be a bad idea. Transportation proximity is tightly related to the location of your biggest customers base.

Lease rates

Not all warehousing options are affordable, especially in the long run. Different lease rates will impact warehouse site selection for online retails. Depending on how much you want to spend on this aspect of your business, you will have a lot of different options to choose from. Keep in mind that the average rent for a square foot of warehouse in the US is constantly rising, which is why you should calculate your costs in advance.

empty warehouse
Your customers base should affect the location of the warehouse.

Available workforce

Once you choose the best warehouse site for your needs, you will have to employ workers to handle your online retail. There is a workforce available in almost every corner of the world, but it does not cost the same. If you’ll need to hire hundreds of people for this job, workforce availability will be one of the main factors to impact warehouse site selection for online retail.

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