3PL Warehouse Conversion

Shaan shares an opportunity to convert an internal warehouse operation into a third-party logistics (3PL) business, combining real estate ownership with fulfillment services for multiple brands.

Key Points:

• Initial Setup:

  • Start with an 8,000 square foot warehouse
  • Begin by handling internal fulfillment operations
  • Learn warehousing operations from ground up

• Business Evolution Plan:

  • Open additional warehouses
  • Purchase the real estate instead of leasing
  • Convert from single-brand fulfillment to multi-brand 3PL service
  • Capitalize on booming ecommerce market

• Business Model:

  • Own the real estate assets
  • Operate fulfillment services for multiple brands
  • Combine property ownership with operational business
  • Create additional revenue streams beyond single-brand fulfillment

• Growth Strategy:

  • Start with internal operations to learn the business
  • Expand to service other brands
  • Build equity through real estate ownership
  • Scale through additional warehouse locations

This model creates value through both real estate appreciation and operational business growth, while capitalizing on the expanding ecommerce fulfillment market.