An ecommerce business comes with various challenges, and one of which is logistics. Storing products, especially when you are into cross-country trade might be overwhelming as the business grows. This is what makes it important to choose the right ecommerce warehouse based on your business needs.
Not every business takes ecommerce warehousing seriously. The whole process is overlooked not only by small stores but by medium-sized ecommerce stores as well. Most stores focus only on marketing and look for ways to improve their conversion rates, and often ignore another important aspect that can help outgrow your business from the garage.
If you are trying to learn about the types of e-commerce warehousing, you might already know what ecommerce warehousing is all about. However, let us have a quick intro to what it is, as it might help the beginners.
Ecommerce warehousing – What is it?
In simple terms, ecommerce warehousing enables the proper storing of your products/goods before you sell them online. The warehouse is more than a space to stock your good. It helps store the goods safely and securely and helps you track the “in-stock” products and those that are ready for delivery.
Managing an ecommerce store is a full-time job. If you are dealing with a pile of products, you might as well find it hard to manage it initially, and things can get hard as your business grows. This is one of the many reasons why ecommerce businesses opt for warehouse management services.
The different types of ecommerce warehouses
If you are planning to sell your products online locally or across the border, you need a functional, safe, and secure warehouse. Businesses that are growing quickly or those that do not have proper storage need to consider ecommerce warehouse management.
Let us quickly have a look at various types of warehouses you can pick from.
Public warehouses are government-owned, and private sector companies can hire these. These warehouses can be rented for personal as well as business use. If you are looking for a space to store your products for a few weeks or months, public warehouses are the perfect option.
Public warehouses are not technologically advanced, but they are affordable and easily accessible. Due to this, these warehouses are preferred by ecommerce start-ups or SMBs.
Manufacturers, distributors, and online marketplaces own private warehouses. A private warehouse is expensive than a public warehouse but is a perfect option if you are looking for a long-term presence in a specific region.
These warehouses are used for the storage of imported goods, before the payment of customs duties. The authorities often provide the companies using these warehouses with bonds, so that there is no loss when the goods are released.
Additionally, the firms that store the products in bonded warehouses need not pay for duties until the products are released. Companies can also use these warehouses to store restricted items until the completion of paperwork. The bonded warehouses also offer various other facilities, which enable the companies to store their goods for a specific period.
Bonded warehouses are perfect for companies that import goods, as the goods can be stored duty-free until a buyer is found. These warehouses are very safe and secure as well.
As the name suggests, a smart warehouse is a kind where the whole process of storage, management, and fulfillment is automated and is handled via AI (Artificial Intelligence). Ecommerce giants like Amazon or Aliexpress use smart warehouses where drones or robots handle the tasks. The use of AI to pack, store, or transport goods enables quick fulfillment of an order, and less human interaction reduces errors.
A consolidated warehouse collects smaller shipments from various suppliers. These shipments are then consolidated into larger shipments, which are then sent to the buyers. The consolidated warehouse collects these shipments for one particular geographical location and thus is very economical. Due to the ease of use, and affordable cost, these warehouses are preferred by small businesses and startups.
A cooperative warehouse is handled by cooperative organizations like winery co-op or by farmers. These warehouses can be used by both the members of the co-op and by outsiders too.
One of the added advantages of using these warehouses is that they offer reduced prices for co-op members.
These warehouses are not only owned by the government but are also controlled by them. Government warehouses charge less when compared to the private or smart warehouse. Besides, when a company is unable to pay the rent by the due date, the government authority has the right to recover the rent by selling the stored goods.
If you are looking for temporary storage space for your goods, you can opt for a distribution center. These are ideal for businesses that need quick storage options before the goods are quickly distributed among the resellers.
The distribution centers are come with various facilities and offer cold storage as well. These can thus be used for food, perishable items as well. These are affordable, are safe, and secure at the same time.
Now that you know the basic functions of different types of warehouses, you can go ahead and choose one based on your requirements. Make sure you pick the right warehouse partner for an affordable, quick, and efficient order fulfillment.
CDS Group of Companies (Author)
CDS Group of Companies is offering excellent warehouse services in Canada such as cold storage, transportation, transload, custom clearance and supply chain etc. For more information, https://www.cdsltd.ca/