There are different types of available warehouses for e-commerce purposes. They all serve the same purpose, but in different and varying ways.
Types Of Warehouses For E-commerce
public warehouses
A public warehouse is usually recommended for e-commerce businesses that are just starting. The same applies to small businesses. They are usually government-owned. They are open for personal use and business purposes as well. The reason for the ease of access to the different kinds of users is the lack of sophistication which is usually a common feature of this kind of warehouse. However, it’s good to know that it is usually advisable for a short-term rental, although long-term uses are also allowed.
Private Warehouses
These kinds of stores are usually built for restricted use. Though restricted, it can still be made available for e-commerce purposes. This warehouse belongs to producers of goods and distributors. They are built to store goods produced by their owners. The peculiar thing about public warehouses is the high price that is paid by external parties to make use of the storage facility. The advantage that the use of this kind of facility brings to a business is the strategic presence it can grant for a longer period in a particular area.
Bonded Warehouses
There are times when certain goods that need to cross territorial borders need to be kept somewhere until it’s time for customs duties to be paid on them. Bonded Warehouse goods are mostly bonded and require proper documentation before they can cross borders. This facility can be used freely by e-commerce businesses for storage till they get buyers for their goods.
Smart Warehouses
These types of warehouses are purely automated in their processing, storage, and even distribution of items. The technology is fully AI-powered and controlled. Human input is usually not needed to perform activities in this kind of storage. The advantage is that there won’t be errors related to sales and distribution and other administrative activities.
Consolidated warehouses
This type of warehouse comprises a consolidation of various small shipments that are headed for the same destination. The little shipments are paired together to form a bigger concentration of these shipments. The advantage it holds for small businesses is the small amount of capital that is invested in the use of this kind of facility.
Cooperative Warehouse
This type is usually owned by associations or cooperative societies. They are built for the use of the members of the association, and sometimes they are available for external use at a high price, as opposed to the reduced rate that the members of the association enjoy.
Government Warehouses
These types of warehouses are regulated by government agencies. This is because they are government properties. Because of the nature of their ownership, their rental prices are often cheap, and it is another option recommended for the use of SMBs.
Distribution Facilities
They are custom-made facilities. They are usually constructed or leased for immediate and short-term use. Here, goods are quickly distributed because it could sometimes be a makeshift arrangement. They are usually used for the storage of groceries and other perishable goods.
Finding the right warehouse?
The importance of using the right warehouse can’t be overemphasized.
It has been found that using the right warehousing system can boost the effectiveness of the delivery process since goods are delivered on time. It aids productivity and efficiency when it comes to inventory management. It can enhance the reputation of a business when the goods are properly stored and delivered in the right condition.
Things to consider in selecting a warehouse
Do they have adequate storage space to meet your warehousing needs? Space must be considered. Do they have the right technology or means to fulfill orders effectively? They must have the right structure to execute orders efficiently. Can they be relied on to deliver on time with their transportation services? This is one attribute that is key in determining the sustainability of the e-commerce business. They must possess a good inventory system that will give them an accurate breakdown of sales and deliveries, as well as orders arriving and the ones in storage. How long have they been in business? is also another factor to consider. Their experience level can determine how effective they will be in handling your business. The scope of the services they offer There are times you need to brand your goods before they are delivered. If the scope of their services doesn’t include this, then it might not be the right one for you. You must also consider the types of goods that they have handled in the past. There will be times when you will have goods that must be stored and delivered in specific conditions, such as perishable items. Their ability to properly store and deliver in the right condition is a criterion. Is The warehouse’s location strategic enough to give your market the needed presence? The location must be right for you.
Conclusion
Different types of warehouses are available for use. Finding the right one for your business should be done carefully.
Will I need to change my warehouse as the business evolves?
Yes, you must do it as the business grows.
Can I manage any type of warehouse till I can afford the one I need?
You should only make use of the one that can cater to the basic needs of your business.
