Mar 23, 2016 in Wages

A new report from real-estate brokerage firm CBRE, Inc., forecasts the potential impact of legislated minimum wage increases on logistic costs at staggering figures. According to the Wall Street Journal, CBRE estimated “a $1 increase in average hourly wages could add more than $1 million in annual costs to a warehouse operation employing 500 people.”

The cost is predicted to have an even greater impact on e-commerce businesses. As consumers continue to buy more online, and demand for shorter shipping times increase, warehouse costs are slated to rise. This cost increase will have an even greater impact during the holiday season.

Several big cities, including Los Angeles, San Francisco, Seattle, Chicago, and Washington, D.C., will see an increase in minimum wage that goes beyond the Federal minimum of $7.25 per hour. In addition to major cities, eleven states will see a minimum wage increase of over $10.00 per hour by the year 2022.

Faced with rising expenses, businesses need new strategies to remain competitive. So what is a business to do?

There is a solution that will help reduce your costs— by 30%. XB Fulfillment can help your business implement an e-commerce order fulfillment solution that can immediately reduce your costs, mitigating wage increase impacts before they hit the bottom line.

Start now and have your lower-cost operations in place before the holiday shipping season. Contact our team at XB Fulfillment for a no-cost strategy consultation today.