{"id":2172,"date":"2019-12-27T14:21:00","date_gmt":"2019-12-27T14:21:00","guid":{"rendered":"https:\/\/www.shipbob.com\/au\/blog\/split-inventory-across-multiple-fulfillment-centers\/"},"modified":"2025-11-28T21:19:35","modified_gmt":"2025-11-28T21:19:35","slug":"split-inventory-across-multiple-fulfillment-centers","status":"publish","type":"blog","link":"https:\/\/www.shipbob.com\/au\/blog\/split-inventory-across-multiple-fulfillment-centers\/","title":{"rendered":"When to Split Inventory Across Multiple Fulfilment Centers"},"content":{"rendered":"\n<div class=\"wp-block-shipbob-blocks-single-toc single-toc\" data-controller=\"blog-toc-controller\" data-action=\"scroll@window-&gt;blog-toc-controller#scrollChanged:passive\" id=\"toc-component\"><div class=\"single-toc-overview\"><p>Table of Contents<\/p><div class=\"single-toc-read-time\"><p>** Minutes<\/p><\/div><\/div>\n<p><a href=\"#h-when-should-you-use-more-than-one-fulfillment-center\">When should you use more than one fulfilment centre?<\/a><\/p>\n\n\n\n<p><a href=\"#h-conclusion\">Conclusion<\/a><\/p>\n\n\n\n<p><a href=\"#h-learn-how-shipbob-helps-you-understand-your-optimal-inventory-distribution\">Learn how ShipBob helps you understand your optimal inventory distribution<\/a><\/p>\n<\/div>\n\n\n\n<p class=\"has-text-align-center\">What do you want to learn?<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"#learn\"><strong>When to Split Inventory<\/strong><\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request Fulfilment Pricing from ShipBob<\/strong><\/a><\/div>\n\n\n\n<p>While <a href=\"https:\/\/www.shipbob.com\/blog\/centralized-inventory\/\">centralising inventory<\/a> and using a single <a href=\"https:\/\/www.shipbob.com\/blog\/differences-warehouse-fulfillment-center\/\">fulfilment centre<\/a> is much more effective than <a href=\"https:\/\/www.shipbob.com\/blog\/self-fulfillment\/\">self-fulfilment<\/a> for many online merchants, one warehouse alone may not be enough for some sellers.<\/p>\n\n\n\n<p>Splitting your inventory across fulfilment centre locations, also known as distributed inventory, offers many advantages. When you work with a <a href=\"https:\/\/www.shipbob.com\/3pl\/\">3PL<\/a> that has multiple warehouses, you can match the service of the largest retailers, without having to build your own infrastructure.<\/p>\n\n\n\n<p>For example, ShipBob owns several fulfilment centres within the contiguous US to enable two-day shipping across the country to help merchants&nbsp;<a href=\"https:\/\/www.shipbob.com\/ecommerce-shipping\/reduce-shipping-costs\/\">reduce the shipping costs<\/a>, transit times, and distance packages travel.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cShipBob has been a great ally as they have fulfilment centres all over the US, facilitating a 2-3 day delivery time for any customer in the US. This is helpful especially when weather challenges happen; being able to have different locations to ship from allows for a more seamless supply chain.\u201d<\/em><\/p>\n<cite>Andrea Lisbona, Founder &amp; CEO of <a class=\"ProsemirrorEditor-link\" href=\"https:\/\/www.shipbob.com\/blog\/touchland\/\">Touchland<\/a><\/cite><\/blockquote>\n\n\n\n<p>But is this strategy right for every ecommerce business?<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"How &amp; Why To Distribute Inventory\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/oiM38TSC1zg?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p><a id=\"learn\"><br><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-when-should-you-use-more-than-one-fulfillment-center\">When should you use more than one fulfilment centre?<\/h2>\n\n\n\n<p>Learn when distributed inventory should be utilised&nbsp;<span>\u2014<\/span> and when it should not be&nbsp;<span>\u2014<\/span> as part of an ecommerce shipping strategy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-you-ship-a-high-volume-of-orders\">1. You ship a high volume of orders<\/h3>\n\n\n\n<p>A single warehouse may be all you need when you are first getting started, as it will likely be too expensive to use multiple fulfilment centres. If you grow enough to the point that the shipping costs exceed the cost of additional warehouse space, then it would be more cost-effective to split your inventory across fulfilment centres.<\/p>\n\n\n\n<p>By utilising multiple <a href=\"https:\/\/www.shipbob.com\/blog\/ecommerce-warehousing\/\">ecommerce warehouses<\/a>, you can strategically choose locations that are near your customers. Storing inventory closer to your customers helps lower shipping costs, because orders will travel a shorter distance when shipped. In other words, it\u2019s cheaper to ship a package 50 miles than it is to ship it 500 miles in most cases.<\/p>\n\n\n\n<p>Similarly, it may make sense to send only your most popular or best-selling products to additional warehouses, rather than store inventory for every single product you sell. This way, your less popular items won\u2019t sit there taking up warehouse space without selling quickly, and you won\u2019t be stuck paying for storage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-your-products-and-orders-are-heavy-in-weight\">2. Your products and orders are heavy in weight<\/h3>\n\n\n\n<p>With the January 2019 change to zone-based pricing for even lightweight packages sent via USPS First Class Mail, all businesses are affected by distance. However, the <a href=\"https:\/\/www.shipbob.com\/blog\/shipping-heavy-items\/\">heavier items are<\/a>, you will realize significant cost savings when your package has to travel less distance or shipping zones.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-you-want-to-consistently-offer-affordable-2-day-shipping\">3. You want to consistently offer affordable 2-day shipping<\/h3>\n\n\n\n<p>In today\u2019s online shopping world, most consumers expect <a href=\"https:\/\/www.shipbob.com\/blog\/guide-offering-affordable-2-day-shipping\/\">two-day delivery<\/a>. <a href=\"https:\/\/www.shipbob.com\/multi-warehouse-management\/\">Using multiple warehouses<\/a> lets you significantly and affordably reduce <a href=\"https:\/\/www.shipbob.com\/blog\/how-last-mile-delivery-works\/\">last-mile delivery<\/a> times. Each time a customer places an order online, the order will be fulfilled from the warehouse that\u2019s closest to them.<\/p>\n\n\n\n<p>This lets you compete with major retailers and offer Prime-like service to meet customer expectations with convenient delivery options.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-4-your-customers-don-t-all-reside-in-one-geographical-region\">4. Your customers don\u2019t all reside in one geographical region<\/h3>\n\n\n\n<p>When it comes to <a href=\"https:\/\/www.shipbob.com\/blog\/choose-order-fulfillment-center-location-outsourcing-3pl\/\">choosing the location of a fulfilment centre<\/a>, it ultimately comes down to where your customers are. This is because orders are delivered quicker and at less cost when your packages travel less distance. To justify an additional warehouse, you must find out how many customers would benefit from it.<\/p>\n\n\n\n<p>For example, if you sell gear for a sports team in Boston, the majority of your customer base will largely be&nbsp;contained within Massachusetts. It\u2019s unlikely that you will ship high volumes of product to people who live in Los Angeles, thus, eliminating the need for a warehouse on the West Coast.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-style-blog is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cFrom expanding into a second ShipBob fulfilment centre, we are excited to be able to offer 65% of our customers with 2-day shipping, up from 32% by only having a single West Coast facility. Soon, this will be 100%. Not only is this better for our customers but we also gain a 13% savings to our bottom line.\u201d<\/em><\/p>\n<cite>Pablo Gabatto, Business Operations Manager at <a href=\"https:\/\/www.shipbob.com\/blog\/ample-foods\/\">Ample Foods<\/a><\/cite><\/blockquote>\n\n\n\n<p>Alternatively, if you sell a special hairbrush and your customers reach all corners of the country, then distributing your inventory to major hubs or densely populated areas would be a more efficient option.<\/p>\n\n\n\n<p>[White paper: <a href=\"https:\/\/resources.shipbob.com\/the-distributed-inventory-strategy\">Why Distributed Inventory is a Game Changer for Ecommerce<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\">Conclusion<\/h2>\n\n\n\n<p>When it comes to whether you should split your inventory between <a href=\"https:\/\/www.shipbob.com\/ecommerce-fulfillment\/\">ecommerce fulfilment<\/a> centres, there is not always a clear-cut answer. Under the right circumstances, shipping orders from multiple warehouses can save you time and money, creating a win-win for both you and your customers.<\/p>\n\n\n\n<p>However, you must consider whether warehousing costs, transportation costs to fulfilment centres, and the number of SKUs you have would be offset by the reduced shipping costs.<\/p>\n\n\n\n<p>Learn how to compete with giant retailers by meeting customer expectations around inexpensive 2-day shipping. Download the \u201c<a href=\"https:\/\/resources.shipbob.com\/shipbob-2-day-express-booklet\">ShipBob 2-Day Express Shipping Guide<\/a>.\u201d<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/resources.shipbob.com\/shipbob-2-day-express-booklet\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Get Your Free E-Guide<\/strong><\/a><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-learn-how-shipbob-helps-you-understand-your-optimal-inventory-distribution\">Learn how ShipBob helps you understand your optimal inventory distribution<\/h2>\n\n\n\n<p>Outsourcing fulfilment to a 3PL allows you to keep your product closer to your end customer while freeing up time and space without needing to invest in your own warehouse. However, unlike an <a href=\"https:\/\/www.shipbob.com\/blog\/the-downside-of-on-demand-warehousing\/\">on-demand warehousing<\/a> company that only helps you find excess warehouse space, a 3PL like ShipBob is the expert in fulfilment.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-embed-handler wp-block-embed-embed-handler wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"ShipBob Fulfillment Center Guided Tour - 3D 360\u00b0 VR Video\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/YdTbM4XlizY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>ShipBob has a free analytics and <a href=\"https:\/\/www.shipbob.com\/blog\/distribution-metrics\/\">distribution metrics<\/a> tool for all customers that lets you explore your ideal inventory distribution so you can best leverage ShipBob\u2019s network of <a href=\"https:\/\/www.shipbob.com\/blog\/distribution-center\/\">distribution centres<\/a> (or fulfilment centres). Using your historical order data, you can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>View which fulfilment centres shipped your last 1,000 orders and the total costs.<\/li>\n\n\n\n<li>See which fulfilment centres would have shipped your last 1,000 orders and how much it would have cost you if you used all or a selection of ShipBob\u2019s fulfilment centres.<\/li>\n\n\n\n<li>Visualise where your customers\u2019 shipping destinations are for a better understanding of how to split inventory across ShipBob\u2019s fulfilment centres to potentially save money.<\/li>\n<\/ul>\n\n\n\n<p>Request a pricing quote for ShipBob\u2019s fulfilment centres below to see if ShipBob would be a good fit for your business.<\/p>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/www.shipbob.com\/quote\/\"><strong>Request a Fulfilment Quote<\/strong><\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn why one warehouse isn\u2019t enough for some ecommerce merchants and when you should distribute inventory across a 3PL\u2019s network of fulfilment centres.<\/p>\n","protected":false},"author":110,"featured_media":25600,"parent":0,"template":"","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"blogcategories":[2,7,8,13],"class_list":["post-2172","blog","type-blog","status-publish","has-post-thumbnail","hentry","blogcategories-3pl-third-party-logistics","blogcategories-fulfillment","blogcategories-inventory","blogcategories-shipping"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.5 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>When to Split Inventory Across Multiple Fulfillment Centers<\/title>\n<meta name=\"description\" content=\"Learn why one warehouse isn\u2019t enough for some ecommerce brands and when you should distribute inventory across a 3PL\u2019s network.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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