The closer you are to the finish line when you start, the faster you’ll get there, right? That’s why, when it comes to choice of fulfillment center, success often hinges on one crucial decision: where to base your operations.
A center close to the customers means faster and cheaper deliveries. Toronto, as Canada’s largest city and a major economic hub, is close to more than 50% of Canadian consumers. Coupled with its proximity to the US, it creates a dual-market advantage.
Good locations also offer easier access to workers and transportation. Toronto excels here too. More than 5.0% of Ontario’s workforce are employed (and have a rich background) in the transportation and warehousing industry. The city can also boast of well-developed infrastructure – highways, railways, and an international airport – all of which facilitate easy transportation and distribution of products both domestically and internationally.
With Toronto, the advantages are extremely pronounced – and there are many more.
Efficient center for distribution across North America
Toronto’s position, within a short distance from the US border, makes it an ideal hub for reaching both Canadian and American markets quickly. Major Canadian cities like Montreal, Ottawa, and Vancouver are well-connected to Toronto, linking a market of over 27 million Canadian eCommerce consumers. Many American destinations can also be reached within just a day or two by ground transportation mirroring the speed of domestic operations.
Expertise in cross-border logistics
When it comes to cross border shipping, Toronto-based fulfillment experts know how to send things across borders easily, particularly between Canada and the United States. They understand the intricacies, customs procedures, and tariffs, ensuring smooth and hassle-free deliveries across the border. This expertise is particularly beneficial for eCommerce businesses looking to expand their market reach.
Affordable shipping rates due to location
Toronto’s high volume of shipping activity attracts numerous carriers, fostering competition that helps keep rates competitive. Local providers usually have strong connections with multiple carriers that cover both Canadian and US destinations. It allows them to negotiate better (at least 30% lower) shipping rates for their clients, making North American distribution more affordable.
Faster delivery times
With customers expecting their orders to arrive within hours or by the next day at the latest, fast delivery is a must. Toronto’s strategic location coupled with a well-established network of carriers allows for quicker shipping to many places. For instance, ShipTop’s Toronto fulfillment center typically offers next-day local delivery and 2-3 day shipping for Canada to US shipments. To avoid reliance on one carrier, we also have access to a wide range of carriers and logistics networks, allowing our customers to diversify their shipping options.
385,100 people employed in warehousing industry
That’s how many workers are in the Canadian warehousing industry, according to the Government of Canada. This large workforce means there are many skilled people available to help with storing and shipping products. Canada, and especially busy areas like Toronto, have a strong foundation for handling the needs of growing businesses.
822.5 million square feet of industrial and logistics space
Statista reports that’s the amount of total inventory available in Toronto in the first quarter of 2024. It gives retailers looking for fulfillment space plenty of options. They can be picky about where they set up fulfillment operations and choose from a wide variety of locations that are just right for their needs, without worrying about running out of space as they grow. This vast space also creates a competitive market, leading to better pricing and service options. It also makes 3PL providers in this region more likely to offer more customized offerings to stand out like tailored storage options, customized packaging, values added services, etc.
Technology and innovation hub
Toronto is home to many advanced fulfillment centers that use smart technology to manage online orders. In Canada, ShipTop is one of the pioneers in bringing innovative tech solutions to the area’s fulfillment industry. Our warehouses use an automated order and inventory system to handle everything from storing products to shipping them out. This technology makes the whole process faster and more accurate than traditional methods.
ShipTop platform connects directly with various eCommerce channels of our customer and provides them with real-time information about their inventory, orders, and shipments. It also provides detailed reporting and analytics, enabling businesses to make informed decisions quickly.
Strong eCommerce market in the region
Online shopping is very popular in Toronto and the surrounding area, generating about 37% of Canada’s total online shopping revenue. This creates a bustling eCommerce market that’s constantly growing and evolving. Rolling out fulfillment operations in Ontario lets businesses quickly serve many local online shoppers that are easy to cater to through rapid delivery.
Access to a wide range of third-party logistics providers and services
Despite its attractiveness, running your own fulfillment center in Toronto can be a costly endeavor. Rent for industrial space is high, ranging from $7 to $20 CAD per square foot yearly. Beyond rent, you also have to pay for things like electricity, equipment, maintenance, and security. Then there’s the cost of hiring and managing warehouse staff, which adds up fast. All these expenses make it really hard for businesses to run their own warehouses and look for professional help from 3PL providers that make fulfillment more affordable.
Toronto has many companies that can help with storing and shipping products. Having so many options means companies can find the right partner to help them manage their products and deliveries without the stress of doing it all themselves. These partners can often do the job faster and cheaper than businesses could on their own, letting companies focus on growing their business instead of worrying about shipping.
Finding a good 3PL fulfillment center in Toronto
With many options available in Toronto, comes the challenge of finding the most reliable 3PL that will meet your business needs and allow you to scale easily. Here is the short checklist of what pay attention to:
- Search for 3PL with clean, efficient spaces that use advanced technology to correspond to requirements of modern eCommerce.
- Research how they can adapt to your business needs; do they offer scalable solutions to accommodate your changing number or orders; how they handle pick seasons.
- Ask about their experience with businesses like yours. Some 3PLs in Toronto are great with certain types of products or industries. The more diverse their portfolio is, the better.
- Toronto can be expensive, so make sure you understand all the fees. Transparent and trustworthy partners will be clear about their prices and what you’re paying for.
- The more warehouses they have, the better. ShipTop has warehouses in Vancouver and Toronto allowing for distributed inventory. That reduces shipping distances and times.
- Opt for a partner that prioritizes clear communication and responsive support. They should clear communication lines and provide dedicated account management to address your concerns promptly.
As leading Canadian 3PL, ShipTop offers top-notch automated fulfillment with expertise in both US and Canadian markets. With multiple warehouse locations, ShipTop ensures faster delivery by storing items closer to customers. Their warehouses, located within an hour of the US border, enable quick cross-border shipping. They reinforce this with Section 321 duty drawback services, which can be particularly beneficial for businesses shipping to the US.
Shipments enter the US within a day, handed off to major carriers for last-mile delivery.
Their client-centricity, and responsive customer support complete the package. For businesses seeking reliable, scalable fulfillment solutions in Canada and the US, ShipTop stands out as an excellent choice. For more information on ShipTop’s services, you can visit: https://shiptop.com/
