Many online stores, especially those that are just starting out, prefer to directly receive goods from manufacturers, bypassing the need for their own warehouse. However, in order to expand the product range and increase sales, having a warehouse for storing goods becomes a necessity.
Here are 5 compelling reasons why a warehouse is necessary for an online store:
- Guaranteed inventory
By owning their own warehouse, an online store can guarantee a constant availability of products, even during seasonal sales and holidays. This helps avoid customer dissatisfaction and lost sales due to product shortages. - Faster delivery
Shipping products from a company-owned warehouse takes less time compared to ordering products from suppliers. This allows the online store to respond quickly to customer inquiries, improve service levels, and increase customer satisfaction. - Streamlined supply chain
Having their own warehouse also reduces the risk of shipment delays by minimizing the supply chain. This helps avoid unforeseen delays related to supplier issues and minimizes the time it takes to ship orders to customers. - Cost savings on purchasing
A warehouse provides the opportunity for bulk purchases from suppliers, which is more economically advantageous than dropshipping. The online store can acquire products at wholesale prices and have the potential to earn more through markup on sales. - Expanded product range
With their own warehouse, an online store can expand its product range and offer customers a wider selection. Additionally, the store can consistently monitor the quality of shipped products, which enhances customer trust and, consequently, increases sales.
Fulfillment is an integral part of modern e-commerce, allowing for efficient management of warehouse operations and fast delivery of products to customers. For many small online stores and newly established businesses, fully outsourcing storage and shipping of goods can be an expensive option. In such cases, it may be worth considering alternative options, such as partial outsourcing or self-management of warehouse operations and renting a mini warehouse with an expansion option.
Regardless of the stage of business development, storage of goods can become one of the biggest challenges if the wrong location and storage conditions are chosen. Therefore, when choosing a warehouse for an online store, the following factors should be considered:
- Convenient warehouse location: many warehouses are located in remote areas that are inaccessible on foot or by public transportation. Additionally, some warehouses may be inconvenient for loading and unloading goods.
- Availability of timely access to the warehouse: many warehouses do not operate on weekends or close in the evening, which can hinder urgent product delivery to customers.
- Storage conditions at the warehouse: the premises may be humid, dry, or dirty, which can lead to spoilage or a decrease in the quality of goods.
- Level of security: the warehouse should be protected against theft and burglary to prevent loss of goods and infringement of customer rights.
- Quality of service: the warehouse should have qualified staff who can promptly and efficiently address any issues with the goods.
When choosing a warehouse for an online store, all the above-mentioned factors should be taken into account. This will ensure fast and high-quality product delivery to customers, enhancing their loyalty and improving the company’s reputation in the market.
