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 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 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 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 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
The four core main elements of efficient distribution are purchasing, integration, operations and transport to consumers.
The biggest challenge facing distribution centers is space management. Facilities that constantly ship and receive inventory must use streamlined stock management practices.
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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