These cities in Minnesota offer practical benefits for warehousing, each with strategic access to transportation networks and industry-specific advantages.
| Warehouse Management Option | Description | Pros and Cons | Estimated Cost Range |
|---|---|---|---|
| Renting Warehouse Space and Managing In-House | Ideal for companies prioritizing control over warehouse operations. This approach involves renting or leasing warehouse space, requiring full responsibility for operations, from receiving and storage to fulfillment and shipping. | Pros: Complete control over warehousing, fulfillment, and shipping; no competition with other customers; ability to customize logistics. Cons: Fixed lease costs with multi-year commitments, higher overhead; responsible for hiring, training, and managing staff; requires significant space (1,500-2,000+ sq ft). | $3,000-$10,000+/month depending on location and size. |
| Using Co-Warehousing Space and Managing In-House | Co-warehousing offers a more flexible lease with shared facilities. Companies lease smaller, locked spaces within a larger warehouse, managing their operations with access to common resources like docks and equipment. | Pros: Lower costs compared to traditional leasing; flexible lease terms (3-6 months); smaller space requirements (250+ sq ft); access to shared facilities. Cons: Still requires managing in-house operations and staffing; smaller spaces may limit growth potential; operational management responsibilities remain. | $1,000-$5,000/month depending on space and location. |
| Using Pallet Storage Warehouse or Overflow Warehouse | Suited for companies needing additional storage or managing overflow. This hybrid approach involves storing products on pallets, which the 3PL handles for storage, retrieval, or direct shipping. | Pros: Cost-effective, pay only for space used; maintain control over fulfillment; ideal for overflow or bulk storage needs. Cons: Not suitable for complex environments needing picking and packing; limited availability of 3PLs willing to handle this approach; responsibility for in-house fulfillment. | $15-$25/pallet per month. |
| Using Fully Outsourced 3PL Company or Fulfillment Center | Fully outsourced solution where a 3PL handles all logistics operations, including receiving, storage, fulfillment, shipping, and returns, freeing businesses from day-to-day management. | Pros: Reduced costs (storage, shipping, labor); simplified logistics; focus on core business activities; variable costs, pay only for what you use. Cons: Loss of direct control over operations; adherence to 3PL’s guidelines; reduced flexibility and customization; quality depends on the 3PL’s standards. | $2-$5/order; $15-$25/pallet per month; plus other fees for receiving, returns, and account management. |
To find 3PL fulfillment and warehousing services in Minnesota, start by researching online listings, working with brokers, or reviewing provider feedback. Focus on providers with a strong track record in inventory management and order tracking. Compare your options based on reliability, cost, and their ability to meet your specific needs.
At WarehousingAndFulfillment.com, we simplify the search by connecting you with trusted, vetted providers for renting, leasing, co-warehousing, and 3PL services. Fill out a short form to get matched with the best options for your business.
When selecting 3PL and warehouse providers in Minnesota, focus on these key factors:
These considerations will help you choose a 3PL provider in Minnesota that meets your needs and supports your operations efficiently.
Finding reliable warehouse services in Minnesota can be challenging when search results often prioritize paid listings over quality. Our curated network, built on honest reviews since 2005, offers a dependable alternative by connecting you with providers based on real performance, not advertising. To get matched with options tailored to your business, simply fill out a form or give us a call.
Warehousing in Minnesota offers practical advantages due to its location, variety of options, and industry relevance.
These factors make Minnesota an effective location for businesses seeking warehousing solutions that align with their logistical and industry-specific needs.
Warehousing in Minnesota comes with several challenges that businesses should be aware of:
These factors highlight the importance of careful planning when considering warehousing in Minnesota, particularly for businesses dealing with sensitive goods or operating in congested or remote locations.
Minnesota is an affordable option from a fulfillment pricing perspective and tends to run slightly lower than the national average. Below are some of the fees and prices in Minnesota, as compared to the U.S. national average
| Pricing Type | Minnesota | National Average |
|---|---|---|
| B2C Order Fulfillment Fee Per Single Item Order | $3.11 | $3.25 |
| B2B Order Fulfillment Fee Per Single Item Order | $4.65 | $4.85 |
| Pallet storage fee per pallet per month | $20.32 | $20.17 |
If you’re planning on bringing your business to Minnesota, there are many factors to consider. To help with your decision, we’ve provided some key data so that you can better know if Minnesota is a good fit to locate your third-party warehousing and fulfillment services.
| Information | Data |
|---|---|
| Population | 5.717 million (2022) |
| Warehouses in State | 358 |
| Amazon Warehouses in State | 16 |
| Average Warehouse Labor Rate | $22.88/hr |
| Sales Tax Rate | 6.875% |
| Property Tax Rate | 1.02% |
| Personal Tax Rate | 7.85%-9.85% |
| Corporate Tax Rate | 9.8% |
It’s also important to look at the top businesses in the state of Minnesota. Doing so can help you understand what industries thrive in the state, what competition might you encounter, or whether your business could cater to an untapped niche. Here are the top 10 businesses in the state of Minnesota:
| Business Name | Number of Employees |
|---|---|
| Aeon | 500,000 employees |
| Target | 409,000 employees |
| Siemens | 303,000 employees |
| UnitedHealth Group | 300,000 employees |
| ACS Group | 210,300 employees |
| Cargill | 166,000 employees |
| Medtronic | 105,000 employees |
| Best Buy | 102,000 employees |
| Carlson Companies | 100,000 employees |
| 3M Company | 95,000 employees |
Don’t rely on search rankings alone—many 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 Minnesota. Fill out our form or call us to get your tailored matches today.
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