5 Things to look for in an ecommerce warehouse

Picking the perfect ecommerce warehouse isn’t just about logistics—it’s about future-proofing your business. Nail it, and you’ll boost efficiency, thrill your customers, and set yourself up for growth that doesn’t come with headaches. But get it wrong, and you’re in for a mess of high costs, delayed deliveries, and wasted potential.

Let’s dive right in and figure out how you can make the smartest, most informed choice when selecting an ecommerce warehouse.

1. Location, location, location

Location is everything when it comes to getting your customers what they want—fast. It’s not just about where the warehouse is sitting on a map; it’s about making sure it’s positioned in a way that works for you and your customers. The closer your products are to your biggest customer hubs, the faster you can get them into their hands, and the fewer issues you’ll have.

Think about where most of your orders are heading. Having a warehouse near those key customer regions means shorter transit times, lower shipping costs, and ultimately, happier customers who keep coming back. Co-warehousing provides the flexibility needed to strategically position your inventory, ensuring you’re meeting demand efficiently and cost-effectively.

Location impacts not only your shipping times but also your ability to manage inventory effectively. For example, positioning your inventory close to suppliers and manufacturers can reduce lead times for restocking, while placing stock closer to high-demand areas can help you fulfill orders faster. Warehouses located near major shipping routes or transportation hubs can also cut down on potential delays, ensuring your products move smoothly through the supply chain.

Considering international sales? You might need more than one warehouse to serve multiple regions effectively. A well-placed network of warehouses can help you balance speed and cost, allowing you to offer competitive shipping options for both domestic and international customers. The right strategy will depend on your target markets, sales volume, and overall business goals—but having flexibility in location planning is key.

2. Warehouse technology

Tech is the secret sauce that keeps your warehouse running smoothly. You don’t want just any inventory management system—you want a modern one that can keep your customers satisfied and orders moving accurately.

A solid Warehouse Management System (WMS) is vital. Real-time tracking, streamlined order processing, and inventory accuracy are non-negotiables if you want to keep things flowing without hiccups. Plus, having a WMS that plays well with your existing ecommerce platform is essential—it means you spend less time troubleshooting and more time growing your business.

Look for WMS tools that sync with popular ecommerce platforms, letting you manage inventory and fulfillment in one streamlined setup. This integration is necessary to create an efficient and scalable logistics process, allowing you to focus on growth rather than backend issues.

In addition to a WMS, consider other technological advancements like automated picking systems, barcode scanning, and shipping technology. These tools can greatly enhance accuracy and efficiency by reducing manual errors and speeding up order processing. Technologies like AI-driven demand forecasting can also help you plan your inventory levels more effectively, preventing both stockouts and overstock situations. Staying on top of the latest technology is not about keeping up with trends—it’s about making sure your warehouse operations are optimized for cost and time efficiency.

3. Scalability

Growth is exciting—but only if your warehouse can keep up. Scalability is the name of the game. When those peak seasons roll around, you need a warehousing solution that can flex with your business—whether you’re doubling your inventory during holiday madness or scaling back when things slow down.

A flexible co-warehousing model lets you expand your workspace when you need more room and reduce it when you don’t—giving you the adaptability to manage peak seasons effectively. This flexibility is what makes co-warehousing a smart alternative to traditional 3PLs, particularly for small businesses looking to maintain lean operations while still having access to necessary resources.

Scalability also means having a warehousing partner that can provide additional services when needed. During peak seasons, you might need more help with packing, managing returns, or customer inquiries. A warehouse that offers on-demand support staff can be a lifesaver, allowing you to meet increased customer expectations without overburdening your in-house team. Flexibility in scaling both space and services ensures that you’re always ready, no matter what opportunities or challenges come your way.

Another key aspect of scalability is inventory optimization. As your product catalog grows, managing that inventory becomes more complex. A good warehousing partner should be able to offer tools and systems that grow with you, helping to ensure that you can easily locate, pick, and pack items even as your offerings expand. This keeps your operational workflow efficient and your fulfillment process streamlined.

Learn more about the differences between a traditional 3PL and co-warehousing model in a recent discussion with former Shopify employees Juliana Freitas and Monica Barker.

4. Customer service

Warehousing isn’t just about stacking boxes—it’s about partnership. Good customer service can turn a stressful logistics situation into a breeze. The difference between a traditional 3PL and a co-warehousing model often comes down to the quality of service—co-warehousing partners often offer more hands-on, human-centric support that can keep your business running smoothly and your customers satisfied.

Look for a provider that prioritizes human-centric support. On-site teams that assist with receiving shipments, handling returns, or optimizing your workspace can make all the difference in letting you focus on growing your brand.

Communication is key when it comes to customer service. You want a warehousing partner that will keep you informed every step of the way—whether it’s about potential delays, inventory discrepancies, or changes in your storage needs. Real-time communication can save you from unexpected surprises and help you make quick, informed decisions. Having a dedicated point of contact can also simplify problem-solving, making it easier to get assistance when issues arise.

Customer service also extends to how your warehousing partner handles your customers’ needs. For example, a partner that offers support for seamless returns processing can make a huge difference in customer satisfaction. Efficient returns handling can lead to quicker refunds or exchanges, ultimately improving your customer experience. Look for a provider that understands the value of this aspect of service and works with you to ensure your customers are happy.

5. Fees and costs

Surprise costs? No, thanks. Understanding exactly what you’re paying for is crucial when picking a warehouse. Make sure you’re clear on storage, handling, and shipping fees to avoid headaches down the line. Transparency in pricing is crucial when working with third-party logistics and warehousing solutions, allowing you to properly budget and prevent surprises.

Some warehouses might look cheap at first but tack on extra fees that add up fast. Make sure your provider offers transparency—straightforward pricing with no hidden charges or confusing fine print helps you budget effectively and stay focused on growth.

Look beyond the basic storage and handling fees to understand the total cost of a warehousing partnership. Are there extra charges for pallet storage, long-term storage, or additional packing materials? What about fees for processing returns? These hidden costs can add up, and knowing about them in advance allows you to budget accordingly and prevent any unpleasant surprises.

Another important factor is shipping costs. Warehouses located in different regions will have different shipping rates depending on their proximity to your customers. Balancing warehousing fees with shipping costs can help you strike the right balance between cost efficiency and customer satisfaction. Remember, the cheapest warehouse isn’t always the best—it's about finding a partner whose cost structure makes sense for your business model.

Making the right choice

Choosing the right ecommerce warehouse is about more than just space—it’s about finding a partner that aligns with your brand and your goals. Whether it’s location, technology, customer service, or transparency, the right warehousing solution can transform your business operations.

A co-warehousing model designed for growing ecommerce brands can offer flexible space, hands-on support, and easy tech integration—everything you need to thrive without the fuss. We’re here to make sure your logistics work for you, not against you.

It’s worth taking the time to visit potential warehouses in person, if possible. Seeing the facility first-hand can give you a better sense of how it operates and whether it matches your needs. Talk to the staff, observe the technology in use, and assess the cleanliness and efficiency of the space. These observations can help you feel more confident in your choice and ensure that the warehouse you pick is the right fit for your business.

Take your time, weigh your options, and remember: the right warehousing partner isn’t just storing your products—they’re supporting your business at every step. Make the choice that sets your brand up for success—because when your logistics are solid, everything else falls into place.

And finally, remember that your warehousing needs will evolve as your business grows. The partner you choose today should be able to grow and adapt with you, offering new services, additional space, and advanced technology as your business expands. Flexibility and a shared commitment to your success are what ultimately make a great warehousing partner. Choose wisely, and you’ll be setting your brand up for a future of smooth operations and satisfied customers.

Ready to elevate your logistics game? Discover Saltbox's flexible warehousing solutions designed to adapt to your growing business needs—Explore our co-warehousing spaces today!