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Or looking at Amazon, the world’s largest retailer outside China, their distribution centers are massive – about 600,000 square feet in size. Then, another truck would take goods from the distribution center to a store to replenish its shelves. An inventory filled truck would arrive at the distribution center. Ultimately, distribution centers are one part of the larger logistics network designed to reduce shipping costs and accelerate transit times.įor example, national and large regional sporting goods shops could use distribution centers to forward stock inventory to individual stores. At these large warehouse transfer points, goods are moved from one form of transportation to another and passed to fulfillment centers or big box stores. What are the benefits of an eCommerce distribution center?Īcting as a waystation, eCommerce distribution centers give sellers more control over how inventory is stored and redistributed coast-to-coast. O2 has been able to pivot on a dime thanks partly to the scale and efficiency of their nationwide warehouse network.īelow we examine the benefits of eCommerce distribution centers and how they’re different from fulfillment centers to help merchants determine which one they may need. Then, powered by word-of-mouth and customer loyalty, O2 expanded to grocery store shelves and a Shopify-enabled eCommerce store.įlexible fulfillment options have helped O2 thrive – even during the COVID-19 pandemic, when the independently-owned gyms they depend on the most were forced to shut down.
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With deep ties to the CrossFit community, founder Dave Colina launched sales at independently owned gyms. One fast growing company to emulate on the multichannel selling front is O2 Recovery. Plus, 87% of shoppers begin their product search online and 54% prefer to make online purchases, further illustrating the importance of differentiating from eCommerce rivals with swifter, cheaper nationwide delivery that doesn’t break the bank. This has led customers to expect speedy delivery from shops of all sizes – even small-and-medium size businesses (SMBs). Beyond their spending power, these retail juggernauts continue pushing the limits of fast shipping. Keeping up with Amazon and Walmart is extremely challenging. While both store inventory, they serve distinct functions in ensuring customers across the country receive their orders intact and on-time without hurting profit margins. As online shops evolve into multichannel selling, understanding the benefits of eCommerce distribution centers and fulfillment centers can make or break the business.