E-Commerce Warehouse: Pick the Right Warehouse in 2021

Warehousing has been a common practice for centuries; however, eCommerce warehouse is somewhat a newer phenomenon. Due to a surge in coronavirus, the world was shut down, and the trend of e-commerce and online businesses rose significantly. Many e-commerce businesses rely on warehousing for their company’s growth, and it is imperative to pick the right warehouse in 2021. 

What is eCommerce warehousing? 

Ecommerce warehousing is the process of storing and managing inventory, which is sold online. While some manufacturers and e-commerce store owners manage their own warehouses, most businesses focus on getting a warehouse operated by third-party fulfillment providers and third-party logistics. 

Types of eCommerce warehouses

There are various e-commerce warehouses, each with its distinct properties and uses. Following are the well-known e-commerce warehouses:

• Warehousing from home: Many new businesses start by storing their inventory at home. If there is a small order volume and the business is relatively new, you can use warehousing from home to cut down your costs and then shift to other types. 
• Fulfillment and distribution centers: Fulfillment and distribution centers are leading e-commerce warehouses where the inventory is stored, packed, and the orders are shipped online. As a logistics company, BBF logistics caters to e-commerce businesses and carries out the services with professionalism. 
• Dropshipping: This is when the product manufacturer controls the complete drop shipping, including production, storage, and shipment. This means that the manufacturer will take the orders and directly ship them to the customers. A disadvantage of this is that the merchant never has control over the orders and inventory. 
• On-demand warehousing solutions: These warehouses provide storage that businesses can rent out; however, the space is often shared by other companies as well, and security and safety problems may arise, and there might be chances that your inventory gets stolen. Also, these warehousing solutions only store the inventory but do not provide fulfillment services.

Picking the right eCommerce warehouse for your business 

We went over various eCommerce warehouses, and it is important to note that each of those warehouses has distinct properties and is suited for different requirements. While picking a warehouse, you need to make sure the physical location of the warehouse is near your business office. Also, if you have a space that can store your inventory, managing your own e-commerce warehouse would be beneficial. On the other hand, if you are a growing business, you can look at third-party logistics and fulfillment companies to do the hard part for you while focusing on quality management and production. 

Many well-known companies use third-party logistics companies. 3PLs negotiate rates, give you back all the time you’d spend stuffing mailers, and reduce the errors you’d make. We looked into opening our own warehouses and hiring employees but couldn’t come close with what 3PLs charge for picking, packing, and shipping. We’d also be worried about scheduling fulfillment shifts, ordering boxes and shipping labels, and dealing with the extra headaches of running logistics. You should spend time doing what you do best, and fulfillment is an easy task to take off your plate.”

Hence, as a growing business, it is recommended that you choose a third-party logistics company or fulfillment center; however, if you have a space, you can manage your warehouse in the comfort of your home.