Warehousing is a critical component of e-commerce fulfillment. Without adequate warehouse space, it’s impossible for orders to reach consumers in a timely and cost-effective manner.
But demand for warehouse storage space fluctuates, making it difficult to predict how much capacity you need at any given time. The question, then, is how to temporarily scale up storage capacity without entering into a long-term agreement. The solution is on-demand warehouse services.
This article explores five of the best on-demand warehouse providers so you can get the space you need when you need it.
Quicklook: Best on-demand warehouses
- Best for all-in-one services: ShipBob
- Best for nationwide fulfillment and fast deliveries: Ware2Go
- Best for providing tons of space: Flexe
- Best for pick, pack and ship service: Flowspace
- Best for cloud-based order management: Stord
5 best on-demand warehouse options
When looking for an on-demand warehouse, these top options will be sure you meet your fulfillment needs.
ShipBob
ShipBob is a true do-it-all warehouse provider, offering global fulfillment, access to leading-edge software and expansive storage options. It can handle massive volumes, provide affordable storage space for small businesses and accommodate any size of request in between.
Best for: Brands in need of an all-in-one provider
International fulfillment: Yes
Special features:
- Two-day shipping
- Customizable dashboards
- Mobile apps
- Warehouse-management software
Benefits:
- All-in-one provider
- International fulfillment
- Transparent pricing
- Technology-centric partner
Disadvantage:
- Slightly more costly than some other options
Pricing: Contact for a quote
Ware2Go
Ware2Go is a subsidiary of UPS. As such, it has access to UPS’s massive network of warehouses, distribution facilities and vehicles, and offers nationwide fulfillment and warehouse capacity. Ware2Go also provides pick, pack and ship services via a user-friendly, cloud-based platform.
Best for: Domestic fulfillment
International fulfillment: No
Special features:
- Cloud-based platform
- Warehouses throughout the U.S.
- Access to the UPS network
- Fast, reliable delivery
Benefits:
- One- to two-day delivery options
- True on-demand capacity
- Fulfillment services
Disadvantages:
- No dedicated support manager
- Support is provided via generic email services
Pricing: Contact for a quote
Flexe
Flexe offers omnichannel logistics and warehousing via its network of more than 1,000 facilities. Cumulatively, Flexe is a provider that manages approximately 30 million square feet of storage capacity while also providing fulfillment services, same-day deliveries and distribution.
Best for: Companies in need of high-capacity spaces
International fulfillment: No
Special features:
- Plenty of capacity
- End-to-end logistic services
- Analytics-based approach to logistics
Benefits:
- Distribution services
- Fulfillment
- Same-day deliveries
Disadvantage:
- Domestic fulfillment only
Pricing: Contact to request a quote
Flowspace
Flowspace offers pick, pack and ship services, and its cloud-based software can integrate with popular e-commerce platforms such as Amazon, resulting in a more seamless fulfillment process for brands and their customers.
Best for: Pick, pack and ship services
International fulfillment: Yes
Special features:
- Integrations with e-commerce platforms
- Omnichannel network
- More than 150 fulfillment facilities
Benefits:
- Excellent customer support
- Full-service fulfillment provider
- Software integrations
Disadvantages:
- Order processing system is somewhat complex
- Quite costly
Pricing: Contact for a quote
Stord
Stord manages a network of third-party warehouses and is best known for its user-friendly dashboard. The company’s partners include businesses from the food and beverage, consumer packaged goods, and manufacturing industries, among many others.
Best for: Cloud-based management
International fulfillment: Yes
Special features:
- User-friendly dashboard
- Transportation services
- Cloud supply chain management tools
Benefits:
- Minimal learning curve
- Intuitive tools
- Fulfillment, logistics and storage services
Disadvantage:
- Not a good fit for smaller businesses
Pricing: Tier-based pricing; contact for a quote
What is an on-demand warehouse?
An on-demand warehouse is a facility that rents out its space to merchants on an as-needed basis. Service providers that offer on-demand capacity manage multiple facilities throughout the nation, providing merchants with storage at several different locations. Merchants, therefore, are able to provide the majority of their customers with one- to two-day turnaround times on most orders.
Merchants can easily scale their storage up or down as needed, which helps them avoid paying for storage space they aren’t using. It also enables them to dodge long-term contracts. In other words, on-demand warehousing promotes more agile supply chain management because merchants can adjust their inventory size as needed.
How do on-demand warehouses work?
The concept of on-demand warehouses is relatively straightforward. A provider strategically disperses a merchant’s goods geographically across facilities with open capacity so their orders can be fulfilled rapidly.
Merchants benefit because they can quickly obtain warehouse space without incurring costly startup fees or making long-term commitments. If a merchant no longer needs capacity at a particular facility, it simply notifies the service provider, which then adjusts pricing accordingly.
Choosing the right warehousing solutions for your business
When selecting on-demand warehousing solutions for your business, you should consider several factors, including facility locations, technologies used and flexibility. Understanding which services are most important to you will help ensure you get the most value for your business.
If you enjoyed this breakdown of the best on-demand warehouse providers, check out this deep dive into the top e-commerce shipping companies.
FAQ
There are many different types of warehouses, but some of the most common are on-demand warehouses, pick, pack and ship warehouses, and bonded warehouses.
A potential downside of working with on-demand warehouses is that the provider may not be familiar with merchandise specific to your industry, which can increase the risk of order delays or product damage.
On-demand warehouses can provide your business with essential order fulfillment services and storage capacity. As long as you do your homework and find a reputable provider, these services can support the growth of your business.
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