Distribution Warehouse Business

3 Distribution Warehouse Business Success Stories [2024]

Pat Walls

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Updated: October 7th, 2024

A distribution warehouse business helps companies sell and fulfill their orders to customers. Focusing on the end of the supply chain, distribution warehouses pick and pack inventory and track the shipment until its delivery to the consumer.

To run a successful distribution warehouse business, you need inventory keeping skills, B2B e-Commerce skills, order management system, customer service skills.

In this list, you'll find real-world distribution warehouse business success stories and very profitable examples of starting a distribution warehouse business that makes money.

1. MyFBAPrep ($6M/year)

Tom Wicky, Bart Boughton, and Taylor Smits came up with the idea for MyFBAPrep after realizing there was a lack of a scalable FBA Prep and DTC fulfillment service for Amazon sellers. By leveraging their collective experience in eCommerce, they built an asset-light network of 40 warehouses with 2 million square feet of space, powered by their proprietary SaaS platform Preptopia™. Since its launch in 2018, MyFBAPrep has grown to a $5 million+ annual run rate with no outside capital investment.

How much money it makes: $6M/year
How much did it cost to start: $200K
How many people on the team: 15

We Built A $6M 3PL Company In 3 Years

Entrepreneur Tom Wicky founded MyFBAPrep, a nationwide network of third-party logistics warehouses, in 2018 with partners Bart Boughton and Taylor Smits and self-funded/bootstrapped it into a $5 million+ run rate annually, growing 1000%+ annually year/year since inception, with no outside capital investment, since its inception and processing over 4 million products through the network with a Gross Merchandise Value (GMV) of over $1 billion.

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2. OTW Shipping ($4.8M/year)

Nick and Parker, the co-founders of OTW Shipping, started their business in 2020 with a mission to provide eCommerce brands with top-notch fulfillment services. Despite their lack of experience in supply chain or eCommerce, they recognized the potential in the market and quickly scaled their business. In their first 12 months, they achieved $1M in revenue, shipping over 120,000 packages. With plans to triple their numbers in the next year and moving into a larger space, OTW Shipping is poised for continued growth and success.

How much money it makes: $4.8M/year
How much did it cost to start: $15K
How many people on the team: 20

How Two Broke College Students Built A $1M/Year eCommerce Fulfillment Center

OTW Shipping co-founders Nick and Parker hit $1M in revenue in their first year of operations, providing eCommerce brands with best-in-class fulfillment and shipping out over 120,000 packages, with plans to triple that number in the next 12 months.

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3. Room2work ($180K/year)

Alan Crowe, founder of coworking space Room2work, came up with the idea after realizing that small contractors needed more than just storage space. Combining the coworking model with the self-storage model, Crowe created a shared office space that catered to local businesses in need of professional amenities, office space, and storage. Despite launching right before the pandemic, Room2work has managed to attract and retain customers, with a focus on optimizing services and providing value to members.

How much money it makes: $180K/year
How much did it cost to start: $200K
How many people on the team: 1

I Launched A $180K/Year Niche Coworking Space [Atlanta]

Founder Alan Crowe launched Room2work, a niche coworking space for small businesses in 2020, generating $14K a month with plans to reach $100K in gross profit, by combining the coworking model with the self-storage model to offer a flexible office space optimized for local SEO, virtual offices, and meeting rooms designed for virtual teams.

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