E-commerce and Warehousing
Ecommerce Warehouse is a very important component to running a successful e-commerce business. E-commerce businesses have to keep inventory secured and safe, irrespective of the size of the business.
Are you confused about what warehousing and distribution are, and how they can help your e-commerce business? Here’s some basic information about warehousing and distribution:
What is ecommerce warehouse?
Warehousing is the process of storing goods that are yet to be sold to customers. Small-scale businesses and startups tend to keep their inventory in their homes, while larger ones lease a place to keep it safe and well-protected.
It is important to note that a ecommerce warehouse and distribution center are two different things.
Warehouse vs. Distribution Center
Warehouse vs. Distribution Center :- A warehouse is the place where goods and inventory are stored, whereas a distribution center takes care of fulfilling the order, including picking it up at the seller and taking it to the customer’s doorstep.
What can we expect to see in a warehouse?
A warehouse space has elements which ensure the safe storage of inventory, so that manufacturers and distributors can feel safe when they are storing their goods.
Listed below are the elements which help to make the best use of the warehouse, and safekeep the goods:
Shelves and Racks: The added vertical space helps in the storage of more goods and keeps everything organized.
Storage with temperature settings: This works well when you have goods, which have to be stored at particular temperatures to avoid damage like food items and medicines.
Good Security: Safety and security features not only keep the goods safe, but businesses can easily keep a track of incoming goods and those going out for delivery.
The software used: This helps the sellers with all the details of his products like how many are in stock, when it is shipped, and the tracking details.
People: People who help with loading and unloading of products and handling all the movement of goods in the warehouse.
Warehouse management when done right with the right set of people, will help your business become more efficient. Warehouse management is the day-to-day management of all the operations including:
- Hiring good, reliable employees who care about their jobs
- Maintaining good relations with the courier company to make smooth and timely deliveries to the customers
- Acquiring all the necessary licenses and certifications from authorities
- Tracking daily shipments
- Keeping track of operations and scaling it with the business’ growth
Warehouse management is directly affects customer satisfaction. If the customer cannot find the right product and/or has difficulty in browsing, there are chances that he may end up buying from a different seller.
Although you may think that in-house warehouse management can be the best option, you would need to take the risk and be answerable for all the warehousing responsibilities instead of concentrating on your business growth.
What are the benefits to outsourcing warehousing?
Easy and fast shipping: Fast delivery always attracts customers to buy the products. You can consider storing the product at multiple places for easy access and better reach. It also costs less for shipping, if shipped to nearby addresses.
Saves time and grows your business: Instead of focusing on the storage of your products, you can use the time to grow your business.
Good inventory management: Since warehouses are designed to store products and take all the necessary steps to keep them well maintained, inventory tracking and damage-free services encourage customers to order more from the same supplier.
However, when warehousing is handled in-house there are many challenges that are frequently faced by the business, such as:
Huge Investment: If you wish to ship products fast and on time, you need to have warehouses in different parts of the country which requires a lot of money. Instead, you can invest this money and concentrate on growing your business.
Tracking Challenges: It is very difficult to track all the goods and keep the customers informed, especially as your business grows. You may end up exhausted and your concentration on your core business will be affected.
On the other hand, there are firms, which help you do the same and keep you updated about all the happenings. With their help, e-commerce management can be easier and better. This option not only gives you peace of mind but also ensures that your customers get their products in the quickest time and in the best condition possible.
- Posted by admin
- On December 29, 2020