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General New Jersey Warehousing Considerations
Though beaches, boardwalks, and bustling cities are peopleโs typical associations with New Jersey, the Garden State can offer quite a few significant benefits in terms of warehousing and logistics โ if you know what to look for.
The Pros and Cons of Using a Warehouse in New Jersey
There are many reasons to consider centering your business’s warehousing and fulfillment operations in New Jersey. The bustling, populous region is home to several niche industries with unique procurement needs, supports global trade through access to multiple ports, is incredibly hospitable to start ups and growing businesses, and has ample legislature covering warehouse worker protections. However, the state also comes with its set of challenges. Make sure youโre considering these unique factors in mind.
- New Jerseyโs prime port accessโhome to the largest port on the East Coastโoffers unparalleled connectivity to major urban centers like New York City, Philadelphia, and throughout the Northeast, ideal for serving dense, high-demand populations.
- The state provides varied warehousing options, from compact units for startups to advanced facilities tailored for e-commerce and large-scale operations.
- New Jersey also supports the warehousing sector with tax incentives like the Grow New Jersey Assistance Program and the Economic Redevelopment and Growth program, which can foster competitive pricing.
- As a key e-commerce hub, cities like Edison and Secaucus feature high-tech fulfillment centers optimized for rapid processing and delivery.
- However, businesses should weigh high costs due to limited space, traffic congestion near major hubs, and space availability challenges around hotspots like Newark and Elizabeth. Planning and exploring less saturated areas can help mitigate these challenges.
Top Warehouse Locations in New Jersey
Every business has a unique set of concerns and must weigh their specific priorities against market options. However, as industry professionals, we certainly have our favorites when it comes to selecting an ideal warehousing and fulfillment location.
Here are some of our top picks for New Jerseyโs best operational hubs.
- Edison: Edison has an abundance of industrial parks with many warehousing options suited for small businesses and B2B operations serving nearby areas.
- Elizabeth: Elizabeth is a practical location for businesses managing imports and exports, with access to Port Newark-Elizabeth and nearby rail lines.
- Newark: Newark is well-suited for enterprise businesses and e-commerce brands that handle large shipments or need fast delivery options. Its proximity to Newark Airport makes it a good candidate for businesses relying on air freight.
- Secaucus: Secaucus may be a good fit for e-commerce and B2C businesses targeting New York City. Its location allows for quick access without dealing with the challenges of operating within the city.
But now that you know the high-level considerations for warehousing in New Jersey, it’s time to consider the main points depending on whether you use 3PL companies in New Jersey or perform in-house operations renting a warehouse.
Specific Selection Factors When Looking for 3PLs & Fulfillment Centers in NJ
Outsourcing to a 3PL can take a load off your plate. They can handle everything from receiving, storage, fulfillment, shipping, and returns, or just act as extra storage for pallets when youโre out of space. Fully outsourced fulfillment for your brand can cut costs, simplify logistics, and let you focus on what your business does best, all while relying on industry pros. But itโs not without trade-offs, outsourcing means giving up some control of this process, adhering to 3PLโs guidelines (like it or not), and tossing some of your in-house flexibility out the door. If youโre thinking about outsourcing, youโll need to consider the following:
- Product Specialization: Ensure the provider specializes in your product type. If they donโt have experience with your type, itโs a red flag.
- B2C Service Orientation: If youโre targeting consumers, choose a provider that prioritizes B2C operations and has experience with your chosen channels rather than primarily focusing on B2B or traditional warehousing. Too many merchants have received poor service from a company that had the wrong focus. Some people will promise they can do both, but most canโt.
- Order Flexibility: Look for a company that offers good cut-off times and fast order processing turnaround times, but that also allows you to make last-minute changes to orders when necessary.
- Reporting and Flexibility: Evaluate their ability to provide custom reports โ some fulfillment providers only offer superficial canned reports, lacking the specific details you need for your business operations.
- Quick and Accurate Receiving: One of the most common problems we hear of are brands that complain that it takes too long for their 3PL to process inventory OR that the inventory counts are consistently accurate.
- Geographic Location: Smaller businesses usually only need a single location provider, and it doesnโt necessarily need to be near you.
- Shipping Discounts: Some companies lure you in with a promise of aggressive rates only to bait and switch. Make sure you get actual sample prices for mock shipments to ensure the rates theyโre providing are as good as promised.
- Efficient Returns Handling: Weโve heard of cases where returns weโre processed for weeks after receipt. Quick returns processing ensures not only accuracy but better ability to refund customers quickly and reuse sellable stock.
- The Right Size: Most ecommerce fulfillment companies wonโt help startups or smaller volume brands. If youโre a smaller business, there are providers that will help โ theyโre just harder to find.
- Transparent Pricing: Look for affordable rates without hidden fees or unexpected rate changes after signing. Countless companies have used our service because they were promised rates but found out the pricing was more than promised.
- Good Contract Terms and SLAs: Beware of (and link to our page).
- Avoid Biased Sources: Donโt trust โtop listsโ (theyโre mostly paid, they are self-produced and rank themselves first, and they only include a few of the thousands available), referral sites that say theyโre free (unlike our company they earn commissions that impact your business one way or another), software companies that earn money by referring 3PLs that use their service, or 3PLs that refer you to other 3PLs.
If youโre serious about outsourcing with a fulfillment center in NJ, youโll have to sort through some of the essentials, such as questions to ask when interviewing 3PL providers, contract terms, and general pricing.
Connect with Trusted Fulfillment Services in NJ
Donโt rely on search rankings aloneโmany top listings are paid placements, not the best options. Our curated network, built on unbiased reviews since 2005, connects you with reliable warehouse services in New Jersey. Fill out our form or call us to get your tailored matches today.
Specific Selection Factors When Looking for Warehouses or Co-Warehouses in New Jersey
Renting warehouse space and managing operations in-house is ideal for companies prioritizing control over warehouse operations. This approach involves renting or leasing warehouse space, and requires full responsibility for operations, from receiving and storage to fulfillment and shipping. But the size of the space determines which option is best for you.
- Traditional Leases: While offering full autonomy over the warehouse space, traditional leases usually require a longer terms lease (1 year+), oftentimes force you to cover many of the utilities and other expenses, force you to come up with all equipment and supplies, and have a much higher minimum starting point for square footage (3,000+ square feet).
- Co-Warehouses: Co-warehousing offers a portion of a warehouse with a more flexible lease (3-6 months or less), access to common resources like docks and equipment, and smaller minimum space requirements (250+ square feet) โ but space maxes out at about 3,000 square feet.
Keep in mind these key factors when searching for a co-warehousing property to rent.
- Engaging a Broker: Utilizing a commercial real estate broker can provide access to a broader range of listings and facilitate negotiations, leveraging their market expertise to secure favorable terms. But it does come at a cost – usually a percentage similar to using a residential real estate broker.
- Lease Agreements: Carefully review lease terms, focusing on clauses related to rent escalations, maintenance responsibilities, and options for renewal or termination to avoid unforeseen expenses.
- Space Requirements: For smaller businesses, determining the minimum space necessary is crucial. New Jersey offers a variety of warehouse sizes, with some facilities providing spaces as small as 1,000 square feet, allowing flexibility for businesses with limited storage needs.
- Contract Duration: Lease terms can vary, with some landlords offering short-term leases, while others may require commitments of several years. Assess your business’s growth projections to choose a lease length that offers both stability and flexibility.
- Co-Warehousing Options: Co-warehousing spaces, which offer shared warehouse facilities, are available in New Jersey, particularly in industrial hubs like Newark and Jersey City. These spaces provide scalable solutions for businesses seeking cost-effective storage without the commitment of a full warehouse.
- Amenities and Infrastructure: Ensure the facility is equipped with essential utilities, including adequate power supply, internet connectivity, and fire safety systems like sprinklers. Some warehouses may also offer additional services such as climate control or on-site security.
- Subleasing Policies: If you anticipate the need to sublease a portion of your space, confirm that the lease agreement permits subleasing and understand any associated conditions or restrictions.
Weโll Help You Find the Right Warehousing in NJ
Finding reliable warehouse services in New Jersey can be difficult when search rankings prioritize paid placements. Our network, built on honest reviews since 2005, connects businesses with trusted 3PL providers. Instead of relying on rankings alone, you can quickly get personalized matches by filling out a short form or giving us a call.
FAQโs About Fulfillment and Warehousing Services in New Jersey
How Much Do Fulfillment Companies Cost in New Jersey?
3PLs and fulfillment centers in NJ charge: set up fees, receiving fees, storage fees, pick and pack fees, shipping fees, and other miscellaneous fees. According to our proprietary data:
- Setup fees average around $385, though they can range from $0 to several thousand dollars, depending on the complexity of integration.
- Receiving fees, which cover the processing and handling of inbound inventory, average $40.79 per hour, with typical charges ranging between $35 and $45 per hour.
- Storage fees are determined by the amount of space your products occupy in the warehouse. The average cost per pallet is approximately $20.37 per month, with a range of $8 to $40 per pallet.
- For fulfillment services, which include picking items from inventory and packaging them for shipping, the average fee for a single-item B2C order is $3.18, with a range between $2.50 and $4.79.
- Shipping discounts off published rates are provided, and usually average around 20-30% depending upon the service level.
- Additional services, such as adding promotional inserts, labeling, or kitting (assembling multiple products into a single package), incur extra charges. For instance, order inserts average $0.25 per insert, labeling costs about $0.05 per label, and kitting services are approximately $39 per hour.
Specifically, New Jersey is a slightly more expensive option from a fulfillment pricing perspective and tends to run slightly higher than the national average, but more cost effective than New York. Below are some of the fees and prices in New Jersey:
- B2C Order Fulfillment Fee Per Single Item Order: $3.18
- B2B Order Fulfillment Fee Per Single Item Order: $4.75
- Pallet storage fee per pallet per month $20.54
How Much Does a Warehouse or Co-Warehouse Cost in New Jersey?
Traditional warehouse is expensive, with warehousing costs ranging from $3,000-$10,000+/month (or $13 per hour on average) depending on location and size. This doesnโt include other fees like utilities, internet, security systems, etc. Co-warehouses charge $1,000-$5,000/month depending on space and location and do usually cover the cost of other utilities.
Who are the top 3PLs in New Jersey?
The โtopโ 3PL depends on your unique business requirements, including product type, volume, service needs, and location. Different providers specialize in various industries, technologies, and scales of operation. While companies like Shipbob, Fulfillrite, Capacity LLC, Barrett Distribution Centers, Fusion Fulfillment and others show up on many of the โtop lists,โ it doesnโt mean they are the โbestโ or even the best for your company. Choosing the right 3PL requires a thorough evaluation of your priorities and a direct comparison of how potential partners meet those criteria.
How many warehouses are in New Jersey?
New Jersey is home to thousands of warehouses, ranging from small storage facilities to large-scale distribution centers. The state has over 1 billion square feet of industrial space, with a significant portion dedicated to warehousing and logistics. Key locations include areas near the Port of New York and New Jersey, as well as logistics hubs like Newark, Elizabeth, Secaucus, and Edison, which cater to the high demand for storage and fulfillment services in the region. The exact number varies as new facilities are built and existing ones expand to accommodate growing industrial needs.
What Types of Companies Can a Fulfillment Center in New Jersey Help?
A fulfillment center in New Jersey can support a variety of businesses, including:
- E-commerce Sellers: Benefit from real-time inventory tracking, platform integrations (e.g., Shopify, WooCommerce), and automated shipping notifications to streamline operations.
- B2C Businesses: Gain fast shipping, efficient return handling, and delivery options tailored to customer expectations for convenience and speed.
- B2B Businesses: Access bulk shipment support, pallet storage, and flexible delivery schedules to manage large-scale operations.
- Small Businesses: Take advantage of low storage or order minimums, scalable solutions, and simple pricing structures that accommodate growth.
- Large Businesses: Utilize advanced reporting tools, custom packaging, and consistent support to handle high order volumes with precision.
- Omnichannel Sellers: Leverage systems that unify inventory management and integrate seamlessly across multiple sales platforms to avoid stock discrepancies and errors.
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