What Do 3PL Warehousing Services Cost in Los Angeles?

The cost of inventory space and 3PL service in Los Angeles is dependent on the availability of real estate, fluctuations in the transportation market, and the specific storage and shipping requirements of your inventory. If you're an ecommerce retailer, these variables can change from year to year or even month to month. Additionally, the majority of warehouses and third-party logistics providers in Los Angeles only lease inventory space in large sections, priced by the square foot.

This business model may have worked in the past. However, many ecommerce retailers have little need for a sprawling warehouse to store and distribute gross amounts of inventory. Invariably, this leads to a gap in cities like Los Angeles, wherein warehouses, fulfillment centers, and 3PL services profit by leasing vast amounts of inventory space for several years at a time. All things considered, Los Angeles is still an ideal location to establish an ecommerce fulfillment operation. However, like most cities across the U.S., Los Angeles lacks a viable solution for ecommerce retailers in need of short-term storage and the fulfillment centers who have excess capacity, but who only deal in long-term contracts.

The answer to the dilemma created by the warehousing market in Los Angeles is on-demand warehousing. On-demand warehousing enables businesses to scale back and avoid paying for excess warehousing and getting bogged down by long-term contracts. In this way, on-demand warehousing services, such as Flowspace, can drastically reduce excess warehousing and distribution costs.