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Best distribution centers

Distribution centers play a critical role in the supply chain. Choosing the right partner will fuel business growth and help get your products routed throughout the nation. 

The FreightWaves Ratings team has identified the top eight distribution center options. These providers also offer e-commerce fulfillment services, meaning they’ll oversee picking, packing and shipping orders.  

Quicklook: Best distribution centers

  • Best for distribution and fulfillment: Amazon Multi-Channel Fulfillment (MCF)
  • Best for rapid distribution and delivery: Deliverr
  • Best for providing industry experience: Complemar
  • Best for comprehensive third-party logistics (3PL) services: FedEx Fulfillment
  • Best for end-to-end logistics: Newegg Logistics
  • Best for integrations with existing platforms: Rakuten
  • Best for scalable services: ShipBob
  • Best for growing businesses: Red Stag Fulfillment

8 Best Distribution Center Options

The best distribution center solutions for growing businesses include the following:

Amazon MCF

Amazon MCF

Amazon MCF is a unique service designed for businesses that sell on channels other than Amazon. While you don’t have to sell on Amazon’s marketplace to use this service, you still get access to the e-commerce giant’s huge infrastructure, including its distribution and fulfillment services. 

Best for: Distribution and fulfillment

Number of warehouses: 175

Special features: 

  • Integrates with other platforms 
  • User-friendly design 
  • End-to-end services

Benefits: 

  • Access to Amazon’s extensive network 
  • Provide fast delivery speeds 
  • Simple pricing

Disadvantages: 

  • No control over packaging
  • Slightly more costly than other options

Pricing: Contact for a quote 

Deliverr

Deliverr

Deliverr provides fast fulfillment and distribution services to maximize customer satisfaction. It has facilities located throughout the United States and can provide two-day shipping to the majority of U.S. customers.

Best for: Rapid distribution and delivery

Number of warehouses: More than 40 warehouses across the U.S.

Special features: 

  • Integrates with Shopify
  • Straightforward pricing
  • Seamless onboarding process

Benefits: 

  • Transparent pricing 
  • Integrations  
  • Quick delivery timetables

Disadvantages: 

  • No branded packaging options 
  • Customer support could be better
  • No return support

Pricing: $3.99 per unit to start and monthly storage fees of $0.75 per cubic foot

Complemar

Complemar

Complemar can provide your business with a tremendous amount of industry expertise. The company has been in operation for decades and offers a full range of distribution services. 

Best for: Providing industry experience

Number of warehouses: 5

Special features: 

  • User-friendly software
  • Proven support model 
  • Industry expertise

Benefits: 

  • Refund management 
  • 99.9% inventory accuracy 
  • End-to-end services

Disadvantages: 

  • Only five facilities 
  • No international shipping services 

Pricing: Contact for a quote

FedEx Fulfillment

FedEx is not just a distribution and fulfillment partner. It is also a full-scale 3PL company. FedEx Fulfillment can assist with every aspect of supply chain management, including distribution, fulfillment and reverse logistics. 

Best for: Comprehensive 3PL services

Number of warehouses: 600

Special features: 

  • International network of facilities  
  • Industry experience  
  • Leading-edge technology 

Benefits: 

  • International shipping services
  • Over 600 facilities in North America 
  • Rapid shipping 

Disadvantages: 

  • Cannot handle bulky items over 50 pounds
  • Can’t integrate with Amazon 

Pricing: Contact for a quote

Newegg Logistics

Newegg Logistics

Newegg Logistics is another full-service provider that handles distribution management. It also offers benefits like kitting and assembly. The provider specializes in domestic shipping but can also ship to Canada.

Best for: End-to-end logistics

Number of warehouses: 5

Special features: 

  • 24/7 customer service
  • Over one million square footage of storage capacity 
  • Two-day shipping

Benefits: 

  • Fast shipping nationwide
  • Round-the-clock service
  • Return management 

Disadvantages:

  • High rates for bulky items
  • Limited integration capabilities

Pricing: Contact for a quote 

ShipNetwork

ShipNetwork, formerly known as RakutenSL, is another great choice to support your company’s supply chain needs. It has more than a dozen warehouses throughout the U.S. and guarantees 100% order accuracy. 

Best for: Integrations with existing platforms

Number of warehouses: 15

Special features:

  • 100% order turnaround by the following business day
  • 100% order accuracy guarantee 
  • Two-day shipping 

Benefits: 

  • 15 centers throughout the U.S. 
  • Integrates with popular e-commerce solutions  
  • Supports a variety of different goods

Disadvantages: 

  • Can be difficult to connect with customer support 
  • High shipping minimums

Pricing: Contact for a quote

ShipBob

ShipBob is relatively new to the distribution and fulfillment space, but its quick growth reflects the value of its offering. It provides end-to-end fulfillment solutions for startups, growing businesses and large corporations. The company’s powerful automation tools simplify everything from returns management to distribution. 

Best for: Scalable services

Number of warehouses: 4

Special features: 

  • Automation tools
  • Plenty of warehouse space 
  • Excellent support  
  • Two-day shipping

Benefits: 

  • No minimum orders 
  • Custom packaging  
  • International shipping 

Disadvantages: 

  • Less-than-perfect shipping accuracy

Pricing: Contact for a quote 

Red Stag Fulfillment

Red Stag Fulfillment is a great option for growing businesses. For those wanting to test its services, it offers a month-long free trial. One of its most notable benefits is that it will pay you if it makes a mistake and will waive your shipping fee for that order. 

Best for: Growing businesses

Number of warehouses: 2

Special features: 

  • Three-day shipping 
  • Excellent reliability
  • Compensates you for mishaps 

Benefits: 

  • Short-term contracts 
  • Can handle oversized products  
  • Fast shipping times 

Disadvantages: 

  • Only has two warehouses 
  • High minimums 
  • Not a good choice for small, lightweight items

Pricing: Varies; contact for a quote 

What is a distribution center?

A distribution center is a storage facility responsible for routing your goods to fulfillment centers. 

How do distribution centers work? 

Distribution centers temporarily store and inventory products until they’re shipped to a fulfillment center. They also facilitate the transition from one shipping method to another. For example, if goods arrive via ship, a distribution center will transfer them to trailers, which will then transport the goods to fulfillment facilities. 

What to look for in the top distribution centers

When searching for a distribution center, you should consider:

Distance from customers 

Ideally, your distribution and fulfillment facilities should be located close to your customers to expedite shipping and handling.

Traveling access

A distribution center should be located near main roadways or shipping locations. Choosing one in a rural area might reduce warehousing costs, but it could also increase shipping times.

Available warehouse space

If a facility has little space to spare, it might not be able to store additional inventory as your business grows. 

Safety precautions

Distributors must be able to store certain goods appropriately, such as in a temperature-controlled environment. Verify that they can adhere to any other required handling precautions, or product quality and safety may be compromised. 

Successful management

The right distribution partner will do more than just oversee the flow of goods. It will also put you in a position to succeed. When vetting potential partners, make sure to ask what kind of support they can provide for your business.

Selecting the ideal warehouse distribution solution for your business

When deciding on a warehouse distribution solution, you should weigh each provider’s benefits, paying close attention to factors like scalability, accessibility and cost. 

Doing so helps you identify the provider that best aligns with the needs, goals and objectives of your organization.

FAQ

What are the four main elements of efficient distribution?

The four core main elements of efficient distribution are purchasing, integration, operations and transport to consumers.

What is the main problem of distribution centers?

The biggest challenge facing distribution centers is space management. Facilities that constantly ship and receive inventory must use streamlined stock management practices.

What is an effective distribution strategy?

Your warehouse distribution strategy should be tailored to the unique needs of your business, which may mean partnering with a third-party logistics provider (3PL) that works with a fulfillment services company or rents local warehouse space. 

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