As customer expectations for fast shipping continue to rise, many e-commerce businesses are exploring regional warehousing as a way to shorten delivery windows and improve satisfaction. But splitting inventory across multiple locations can come with additional complexity and costs. So, is it worth it?

The idea behind regional warehousing is simple: instead of shipping every order from one central location, you store inventory in multiple warehouses closer to where your customers live. When done correctly, this strategy reduces shipping zones, shortens delivery times, and can even lower carrier costs.

Amazon’s Fulfillment by Amazon (FBA) is a prime example of distributed inventory in action. When sellers enroll in the FBA network, Amazon automatically distributes their products across fulfillment centers based on demand forecasts. This allows customers to receive orders in as little as one day, and sellers benefit from Amazon’s negotiated shipping rates and broad logistics infrastructure.

But Amazon isn’t the only player. Many third-party logistics providers (3PLs) like ShipBob, Deliverr, and Red Stag Fulfillment offer regional warehousing options for businesses that want more flexibility and branding control. These providers allow sellers to store inventory in multiple locations across the U.S., enabling fast, cost-effective two-day shipping without the need to manage individual warehouses.

The key benefit is delivery speed, which translates directly into higher conversion rates and fewer abandoned carts. According to data from Baymard Institute, slow delivery is a leading reason for cart abandonment. Customers are more likely to complete a purchase when they see fast, affordable shipping options at checkout.

However, there are trade-offs. Splitting inventory means higher storage fees, more complex inventory management, and potential overstock or understock issues in specific locations. Businesses need reliable demand forecasting and real-time inventory visibility to avoid costly imbalances. Software platforms like Inventory Planner and Skubana can help track product movement and sync data across warehouses.

For smaller brands, it might make sense to start with a single fulfillment center and transition to regional warehousing once sales volumes justify the investment. A hybrid approach—using one primary warehouse with a secondary location on the opposite coast—can also provide faster delivery to both coasts without a full national rollout.

Ultimately, the decision comes down to your business model, shipping volume, and customer expectations. If you’re consistently seeing long shipping times or high cart abandonment rates, regional warehousing could be the next step in scaling your fulfillment strategy.