"I have been consistently impressed by their ability to handle our complex needs and willingness to say yes to any challenge. Most importantly, I believe in the character and work ethic of the team."
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"I have been consistently impressed by their ability to handle our complex needs and willingness to say yes to any challenge. Most importantly, I believe in the character and work ethic of the team."
Mike, Co-Founder & CEO
The e-commerce industry is growing rapidly and is expected to continue expanding. When it comes to the scalability of e-commerce businesses, a crucial aspect is determining where to store goods and manage inventory for online sales. This is where e-commerce warehousing comes in. It may sound simple, but different types of warehouses offer different benefits, and businesses should partner with a warehouse that offers solutions suited to their needs. So, what does your ideal warehousing solution look like? In this article, we’ll cover everything you need to know to choose the best option for your business.
E-commerce warehousing refers to the storage and management of goods intended for online sale in a warehouse facility. E-commerce warehousing helps online businesses scale up when they outgrow their first storage space; it encompasses everything from inventory management to product safety and security. By partnering with an e-commerce warehouse, businesses can benefit from all-inclusive logistics solutions in one place, enabling them to cut shipping costs and cater to fluctuations in demand more efficiently.
E-commerce warehousing is tailored to online businesses. It empowers them to increase operational efficiency by streamlining product sorting, packing, and shipping.
E-commerce warehousing provides comprehensive inventory management services from receiving and storing inventory to conducting periodic inventory audits. Warehouses that are tailored for e-commerce stores will keep you updated on inventory levels, enabling you to respond more quickly to inventory shortages.
An e-commerce warehouse serves as a distribution center for your carriers. Instead of managing deliveries manually, you can connect your online platform to your shipping carriers using an automated logistics system. Even for bulk orders, shipping becomes easier to manage when the process is automated, and carriers find items packed and ready for shipping at the appropriate time. This integration can speed up the shipping process and, as a result, increase customer satisfaction.
An e-commerce warehouse utilizes an automated WMS (warehouse management system). This system records customer data and seasonal shipping data and can enable businesses to accurately forecast shipping volumes for upcoming seasons. A WMS lets you track inventories in real-time, helping you to better prepare for fluctuations in demand for specific products.
E-commerce warehouses keep their WMS up-to-date with industry-approved safety regulations. They can enable your business to follow proper safety protocols and provide better products and services without having to worry about non-compliance.
E-commerce warehousing enables businesses to integrate their selling platform with a WMS, which keeps track of inbound and outbound shipments. This allows businesses to maintain their stock according to supply and demand.
E-commerce warehouses vary greatly in terms of what they offer and how they operate. The following are the most common types of e-commerce warehouses:
Large manufacturers, wholesalers, and distributors generally have their own warehouses – these are called private warehouses. Private warehouses cost more than public warehouses but can be tailored to a specific company’s needs.
Warehouses owned by logistics and fulfillment companies are known as public warehouses. They offer the same services as private warehouses, but their operations can be more technologically advanced because the companies that own them specialize in warehouse management. Public warehouses offer their services to multiple businesses at once, especially SMBs. They are a good option for online businesses because their portfolio and customer reviews are publicly available for prospective clients to go over.
Government-owned warehouses are more affordable than private or public warehouses. They are owned by government bodies and used to store government property, but they are also open to private companies. These warehouses are not as technologically advanced as private and public warehouses and may not offer seamless integration. Businesses that choose government warehouses are generally just looking for a storage space.
Consolidated warehouses take small shipments from various sellers and group them into a larger shipments before they are sent to a buyer. Because consolidated warehouses require each shipment to be from the same geographical location, they might not be the best choice for e-commerce businesses.
Cooperative warehouses are owned by a collective of companies or organizations and usually cater to a specific industry, such as farming or wine production. Anyone in the collective can store their goods in a cooperative warehouse at a reduced cost since the members of the collective pool their resources to fund the warehouse.
Smart warehouses are the most technologically advanced. They utilize AI, robotics, and drones to automate the storage, picking & packing, and shipment of inventory. These warehouses are more expensive, but they provide increased efficiency and a reduction in errors, making them a good choice for businesses.
E-commerce warehousing can significantly benefit your online business. It offers scalability, a reduction in errors, and can decrease your stress as a business owner, enabling you to focus on growing your business and increasing customer satisfaction. Here are some key reasons why you should consider e-commerce warehousing:
E-commerce warehousing is a critical part of an online business’s supply chain, and it becomes even more important as a business grows. Below are some best practices for e-commerce warehousing:
A strategic warehouse layout ensures efficient workflow, optimal use of space, and scalability. It helps reduce errors, cut costs, and cater to fluctuations in demand.
Different order-picking methods, such as single order picking, batch picking, and zone picking, work for different businesses. E-commerce warehouses test multiple order-picking methods to implement the most suitable one for a specific business.
One of the core benefits of e-commerce warehousing is fast and cost-effective shipping. This is crucial for businesses because fast, cheap shipping results in higher customer satisfaction. E-commerce warehouses are always trying to find faster shipping methods, and at Encore Fulfillment, we offer 2-day shipping to accommodate the needs of growing businesses.
E-commerce warehouses utilize a WMS that can integrate seamlessly with a business’s e-commerce platform. This integration helps business owners keep track of orders, stay up-to-date on inventory, forecast fluctuations in demand, and plan inbound and outbound shipments.
E-commerce warehousing is becoming a necessity for growing e-commerce businesses. Business owners looking to scale their operations need efficient inventory management and shipping solutions; e-commerce warehousing provides both and also cuts costs. If you own a growing e-commerce business, consider partnering with Encore Fulfillment for your warehousing needs. We take care of logistics so that you can focus on expanding your consumer base in order to thrive as an online business.
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