Should You Open a Warehouse or Use a 3PL?

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Should You Open a Warehouse or Use a 3PL?

Oct 14, 2025

If you’ve been reselling for a while, you’ve probably hit that point where your inventory no longer fits in your room, your garage, or your storage unit—and you start wondering:

“Should I open a warehouse?”

It’s a natural step for every growing reseller. But before you sign that lease, you need to understand the real costs, trade-offs, and timing.

If you’ve been reselling for a while, you’ve probably hit that point where your inventory no longer fits in your room, your garage, or your storage unit—and you start wondering:

“Should I open a warehouse?”

It’s a natural step for every growing reseller. But before you sign that lease, you need to understand the real costs, trade-offs, and timing.

If you’ve been reselling for a while, you’ve probably hit that point where your inventory no longer fits in your room, your garage, or your storage unit—and you start wondering:

“Should I open a warehouse?”

It’s a natural step for every growing reseller. But before you sign that lease, you need to understand the real costs, trade-offs, and timing.

On This Page

The Hidden Cost of a Warehouse

Why Staying Lean Wins

The Real Cost of Fulfillment

Using KNET

The Takeaway

The Hidden Cost of a Warehouse

A warehouse sounds exciting—it feels like the next level. But what it really means is a long-term commitment.

When you sign a 5-year lease on a 20K/month warehouse, you’re not just paying $20K per month. You’re personally guaranteeing over $1.2 million in rent. Add utilities, racking, insurance, payroll, and logistics—and suddenly, you’re locked into an overhead that makes it hard to pivot if the market shifts.

Most resellers overestimate how much space they need and underestimate how quickly things can change. The sneaker game cycles every few months. The last thing you want is to be overextended with fixed costs that prevent you from adapting when the market moves.

The Hidden Cost of a Warehouse

A warehouse sounds exciting—it feels like the next level. But what it really means is a long-term commitment.

The Hidden Cost of a Warehouse

A warehouse sounds exciting—it feels like the next level. But what it really means is a long-term commitment.

Why Staying Lean Wins

Running lean gives you flexibility—to pivot, liquidate, or change business models when needed. It’s not glamorous, but it’s how most top operators survive multiple cycles. Your goal should be to keep overhead low until capacity is the bottleneck, not ego.

Why Staying Lean Wins

The Real Cost of Fulfillment

Let’s break down what fulfillment actually costs—because the numbers usually make the decision clear.

Owning a Warehouse

Let’s say you lease a 3,000 sq. ft. space for $10,000/month.

Add in these recurring costs:

Utilities & insurance: $1,000–$2,000/month
Labor: $4,000–$8,000/month (2–3 warehouse staff minimum)
Supplies (boxes, tape, labels): $500–$1,000/month
Software & equipment: $500–$1,000/month

That’s roughly $16K–$22K/month in fixed expenses—before shipping even starts.

If you’re moving 3,000 pairs per month, you’re paying $5–7 per pair in overhead just to operate.

And that number doesn’t drop if sales slow down — you still owe the same rent, payroll, and utilities.

The Real Cost of Fulfillment

Let’s break down what fulfillment actually costs—because the numbers usually make the decision clear.

Owning a Warehouse

Let’s say you lease a 3,000 sq. ft. space for $10,000/month.

Add in these recurring costs:

Utilities & insurance: $1,000–$2,000/month
Labor: $4,000–$8,000/month (2–3 warehouse staff minimum)
Supplies (boxes, tape, labels): $500–$1,000/month
Software & equipment: $500–$1,000/month

That’s roughly $16K–$22K/month in fixed expenses—before shipping even starts.

If you’re moving 3,000 pairs per month, you’re paying $5–7 per pair in overhead just to operate.

And that number doesn’t drop if sales slow down — you still owe the same rent, payroll, and utilities.

The Real Cost of Fulfillment

Let’s break down what fulfillment actually costs—because the numbers usually make the decision clear.

Owning a Warehouse

Let’s say you lease a 3,000 sq. ft. space for $10,000/month.

Add in these recurring costs:

Utilities & insurance: $1,000–$2,000/month
Labor: $4,000–$8,000/month (2–3 warehouse staff minimum)
Supplies (boxes, tape, labels): $500–$1,000/month
Software & equipment: $500–$1,000/month

That’s roughly $16K–$22K/month in fixed expenses—before shipping even starts.

If you’re moving 3,000 pairs per month, you’re paying $5–7 per pair in overhead just to operate.

And that number doesn’t drop if sales slow down — you still owe the same rent, payroll, and utilities.

Using KNET

KNET simplifies the math completely.

You pay a flat $5 service fee per outbound pair — and that’s it.

No warehouse lease, no staff, no boxes, no tape, no insurance, no overhead.

You only pay when you sell or reship.

And unlike traditional 3PLs, that $5 includes:

Storage and handling
Pick, pack, and fulfillment labor
Integrated multi-channel cross-listing
Auto-undercutting and delisting
Real-time inventory and aged-stock tracking

If you sell 3,000 pairs in a month, your fulfillment cost is a simple $15,000 total — and if you sell half that next month, you only pay half.

Zero fixed cost. Zero long-term liability.

Using KNET

KNET simplifies the math completely.

You pay a flat $5 service fee per outbound pair — and that’s it.

No warehouse lease, no staff, no boxes, no tape, no insurance, no overhead.

You only pay when you sell or reship.

And unlike traditional 3PLs, that $5 includes:

Storage and handling
Pick, pack, and fulfillment labor
Integrated multi-channel cross-listing
Auto-undercutting and delisting
Real-time inventory and aged-stock tracking

If you sell 3,000 pairs in a month, your fulfillment cost is a simple $15,000 total — and if you sell half that next month, you only pay half.

Zero fixed cost. Zero long-term liability.

Using KNET

KNET simplifies the math completely.

You pay a flat $5 service fee per outbound pair — and that’s it.

No warehouse lease, no staff, no boxes, no tape, no insurance, no overhead.

You only pay when you sell or reship.

And unlike traditional 3PLs, that $5 includes:

Storage and handling
Pick, pack, and fulfillment labor
Integrated multi-channel cross-listing
Auto-undercutting and delisting
Real-time inventory and aged-stock tracking

If you sell 3,000 pairs in a month, your fulfillment cost is a simple $15,000 total — and if you sell half that next month, you only pay half.

Zero fixed cost. Zero long-term liability.

The Takeaway

A warehouse locks you into $20K+ every month before you even move a single pair.

KNET scales with you — not against you.

That’s why smart resellers use KNET as their growth infrastructure instead of taking on leases and payroll.

It’s not just a 3PL — it’s your sales, logistics, and operations engine all in one system.

Sell faster. Pay less. Stay flexible.

The Takeaway

A warehouse locks you into $20K+ every month before you even move a single pair.

KNET scales with you — not against you.

That’s why smart resellers use KNET as their growth infrastructure instead of taking on leases and payroll.

It’s not just a 3PL — it’s your sales, logistics, and operations engine all in one system.

Sell faster. Pay less. Stay flexible.

The Takeaway

A warehouse locks you into $20K+ every month before you even move a single pair.

KNET scales with you — not against you.

That’s why smart resellers use KNET as their growth infrastructure instead of taking on leases and payroll.

It’s not just a 3PL — it’s your sales, logistics, and operations engine all in one system.

Sell faster. Pay less. Stay flexible.

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