5 Online Shopping Facts: Leveraging 3PL for Support
Scott Hothem • March 14, 2014
It is undeniable that the way consumers are selecting and purchasing products is evolving. In order to satisfy these new demands, keep your brand relevant and continue to advance your business, the way you operate needs to evolve as well. Online shopping from home and mobile devices has drastically changed the expectations of consumers. Not only are younger demographics fitting this trend, but your traditional buyers are moving in this direction also. According to iacquire.com, the 45-64 demographic makes up 40.4% of online shoppers. The importance of how your business handles these changes and embraces an omni-channel operation has never been higher. As technology continues to expand in its capabilities, the conventional methods of fulfillment and logistics are proving increasingly out dated. The specialization required to address these changes can be both expensive and difficult to implement within your organization. Leveraging the services of an experienced, capable third party logistics provider (3PL) can allow you the resources to stay ahead of the curve. Below are 5 facts about on-line shoppers that put this growing element of business into perspective.
- The largest share of online revenue generated in 2012 was from retail shopping websites which totaled $186.2 billion. This number is projected to increase to $361.9 billion by 2016 (E-Commerce-Statista Dossier 2013). With such a substantial increase in the size of this market expected, utilizing a 3PL can position your business to capitalize on this rapidly growing segment.
- 42% of consumers chose to find a better price online as their reason for purchasing after shopping in a store (RIS/Cognizant). Price points are becoming a bigger consideration for shoppers. Streamlining fulfillment operations and reducing costs can create a competitive advantage with lower prices.
- The number of U.S. digital shoppers is expected to grow from 137 million in 2010 to 175 million by 2016 (eMarketer). This growing consumer base will also have higher demands as far as fulfillment and delivery options. Your ability to deliver product when and where they desire can create significant new opportunities.
- Half of shoppers say that tracking services for online purchases are essential (comScore). Customers today are avoiding stores and ordering remotely for convenience. A part of that convenience is being able to maintain visibility of their purchase and expect it on a certain date. A 3PL cannot only provide this tracking service, but ensure its accuracy.
- 74% of online shoppers cite having a variety of shipping options available as a key to overall satisfaction (comScore). Does your organization currently have the capability to offer a variety of shipping options? And are these options affordable for the consumer while making sense for your bottom line? The efficiencies and expertise afforded by a 3PL can create a wider variety of shipping methods while also making fiscal sense on both ends of the transaction.
All of these statistics point to a growing variable that cannot be ignored. With the number of existing customers, potential customers, competitors and dollars expanding, you need to be able to position your business to compete. The resources and efficiencies available from a 3PL partner can be specifically geared to face these new challenges and opportunities.
At Barrett Distribution Centers, we work with our clients to create the best supply chain plan for their business. We embrace visibility and technology to generate ROI and a higher level of service.
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Companies choose warehouses near ports to reduce transportation costs, speed up inventory movement, improve supply chain efficiency, and simplify the import process. By storing goods closer to where they enter the country, businesses can move products into inventory faster while supporting efficient distribution to customers and retail partners. Key Takeaways Warehouses near ports help businesses reduce inland transportation costs and accelerate the movement of imported goods. Port-adjacent facilities improve inventory availability, shorten lead times, and support more resilient supply chains. An experienced 3PL can combine a strategic port location with advanced technology and fulfillment expertise to streamline inbound and outbound logistics. Why Do Businesses Store Inventory Near a Port? For companies importing products from overseas, the journey doesn't end when a container reaches a U.S. port. Goods still need to be unloaded, transported to a warehouse, processed, and prepared for distribution. Choosing a warehouse near a port helps minimize the time and cost associated with moving products inland. Instead of transporting containers long distances before inventory becomes available, businesses can quickly receive, inspect, and store products close to the port of entry. This approach improves inventory availability and creates a more responsive supply chain, especially for businesses managing high-volume imports or seasonal demand. How Does a Port Warehouse Reduce Transportation Costs? Transportation costs can increase significantly once imported goods leave the port. A warehouse located nearby reduces the distance containers must travel before inventory is received, helping businesses lower drayage and domestic transportation expenses. It can also reduce handling throughout the supply chain, creating a more efficient flow of goods from arrival to fulfillment. For companies importing products regularly, these savings can have a meaningful impact on overall logistics costs. How Does a Warehouse Near a Port Improve Supply Chain Efficiency? Speed is one of the biggest advantages of warehousing near a port. When imported inventory can be received and processed quickly, businesses gain faster access to sellable products. This helps reduce lead times, replenish inventory sooner, and respond more effectively to changes in customer demand. Port-adjacent warehouses also provide flexibility during peak shipping seasons by allowing businesses to move inventory efficiently through receiving, storage, and fulfillment operations. Which Businesses Benefit Most from Port Warehousing? While nearly any importer can benefit from a warehouse near a port, certain industries often see the greatest value. Businesses that frequently import consumer packaged goods, apparel, footwear, food and beverage products, health and beauty items, consumer electronics, or other high-volume products often rely on strategically located warehouses to improve inventory flow and reduce transportation costs. Companies with omnichannel distribution networks also benefit by positioning imported inventory for both retail replenishment and direct-to-consumer fulfillment. How Can a 3PL Maximize the Benefits of a Port Warehouse? A warehouse location is only one part of an efficient supply chain. The expertise and technology behind the operation are equally important. An experienced third-party logistics (3PL) provider can manage receiving, inventory storage, order fulfillment, transportation, and value-added services from a single facility. This helps businesses reduce operational complexity while maintaining visibility throughout the supply chain. Barrett Distribution operates a food-grade warehouse in Curtis Bay, Maryland, located within 10 miles of the Port of Baltimore. The facility is designed to support high-volume retail distribution, omnichannel logistics, ecommerce fulfillment, and value-added warehousing services. Barrett also provides advanced warehouse technology, transportation management, and real-time inventory visibility to help customers manage imported inventory efficiently. Is a Warehouse Near a Port Right for Your Business? If your business imports products internationally, stores large volumes of inventory, or serves customers across multiple sales channels, warehousing near a port may be a strategic advantage. A port-adjacent warehouse can reduce transportation costs, improve inventory availability, and create a faster, more resilient supply chain. When combined with an experienced logistics partner, it can also simplify inbound operations while supporting efficient fulfillment to retailers, distributors, and consumers. As global supply chains continue to evolve, businesses that strategically position inventory closer to major ports are often better equipped to respond to changing demand and maintain high service levels. Frequently Asked Questions Why do companies choose a warehouse near a port? Companies choose warehouses near ports to reduce transportation costs, accelerate inventory movement, simplify imports, and improve supply chain efficiency. How does a warehouse near a port reduce shipping costs? By minimizing the distance imported goods travel after arriving at a port, businesses can lower inland transportation and handling costs while improving inventory flow. What industries benefit most from port warehousing? Industries including consumer packaged goods (CPG), apparel, food and beverage, health and beauty, consumer electronics, and ecommerce often benefit from warehousing near major ports because they rely on frequent imports and efficient inventory distribution. Does Barrett Distribution offer warehousing near a port? Yes. Barrett Distribution operates a warehouse in Curtis Bay, Maryland, located within 10 miles of the Port of Baltimore. The facility supports omnichannel fulfillment, retail distribution, ecommerce fulfillment, and food-grade warehousing with advanced inventory management capabilities.
The best warehouse location for fast shipping is one that places inventory close to your customers while providing access to major transportation networks, parcel carriers, and ports. Choosing the right location can reduce shipping costs, shorten delivery times, and improve customer satisfaction. Key Takeaways Warehouse location directly impacts shipping speed and costs. Proximity to customers and transportation hubs leads to faster fulfillment. A strategic 3PL can help determine the best warehouse network for your business. Why Is Warehouse Location Important for Fast Shipping? Warehouse location influences nearly every aspect of your supply chain. The farther a package has to travel, the longer it typically takes to reach the customer and the more expensive it becomes to ship. Positioning inventory closer to your customer base helps reduce transit times while improving overall shipping efficiency. For businesses that serve customers across the United States, selecting a warehouse with access to major highways, parcel carrier hubs, airports, and ports creates additional opportunities to move products quickly and reliably. Where Should a Warehouse Be Located? There isn't a single "best" location for every business. The ideal warehouse depends on where your customers are located, how your products move through the supply chain, and whether you serve ecommerce, retail, or wholesale channels. Companies importing products often benefit from warehouses located near major ports, allowing inventory to move into storage more quickly and reducing inland transportation costs. Businesses with nationwide customers may benefit from multiple fulfillment centers positioned in different regions to shorten shipping distances. Is One Warehouse Enough? For growing companies, one strategically located warehouse is often the most cost-effective solution. It simplifies inventory management while keeping operating costs lower. As order volume increases and customers become more geographically dispersed, multiple warehouse locations can improve delivery speed and reduce shipping expenses by placing inventory closer to end customers. How Does a 3PL Help Optimize Warehouse Location? A third-party logistics provider analyzes customer locations, shipping patterns, transportation costs, and future growth plans to recommend the most effective warehouse strategy. Rather than selecting a location based solely on geography, a 3PL helps businesses build a fulfillment network that balances speed, cost, and scalability. Frequently Asked Questions What is the best warehouse location for fast shipping? The best warehouse location is one that minimizes the distance between your inventory and your customers while providing access to reliable transportation infrastructure and carrier networks. Does warehouse location affect shipping costs? Yes. Shorter shipping distances generally reduce transportation costs while improving delivery speed. Should my warehouse be near a port? If your products are imported, locating inventory near a major port can reduce lead times and lower inbound transportation costs.
