1 Who, What, Where, When, Why While investing in warehouse expansion can open up new horizons for your business, it is also expensive and time-consuming. Before you jump into a decision, ask yourself a few important questions. 1.What’s your motivation? Identify what is wrong with your current situation. Typical answers might be: •Customers want faster shipping at lower cost. •You want to add new product lines. •You want to target a new group of customers. •A new major client wants to partner with you. •A presence in more favorable markets could boost your brand. •You’ve outgrown storage capacity, and organizing stock is cumbersome. •You need to speed up shipping times and lower delivery costs. •A merger or acquisition is coming up, changing the nature of your business. •Suppliers are pressuring you to keep more inventory on hand. All of these boil down to the same thing–growth. And you definitely don’t want a lack of space to hinder your business expansion or profitability. Expanding your warehouse space may be an ideal way to position your facility to reduce operational costs and improve your customer experience. On the other hand, maybe an agent is pushing a rental deal that’s “too good to pass up.” Perhaps you feel like a bigger facility would make your business seem more prosperous. These are not necessarily valid reasons for going through the expense and hassle of expansion–at least for now. The bottom line is that if adding warehouse space will grow your brand and bottom line, it’s probably a good idea–if and only if the benefits outweigh the risks. Keep reading. If adding warehouse space will grow your brand and bottom line, it’s probably a good idea. But before making a move, do your diligence comparing risks and benefits. Time to Expand Your Ecommerce Warehouse? A Guide from Extensiv 3