Ecommerce warehousing is a term used to refer to the storage of physical goods before they are sold online. The thing that makes eCommerce warehouses different from traditional warehouses, is that all of the goods that pass through are sold exclusively online, usually directly to consumers. Warehousing is used mainly by suppliers, but can also be used by eCommerce sellers that have amassed substantial online followings and built popular shops.

If you are new to eCommerce and are unfamiliar with terms like warehousing, then you’ve come to the right place. Here are six things you need to know about warehousing:

What Is Warehousing?

As previously mentioned, warehousing is the storage of goods. Warehousing includes tasks like training and managing warehouse staff; managing equipment; building relationships with shipping carriers; product security; forecasting shipping volume; scaling operations, and daily record keeping. If it sounds like a lot of work, that’s because it is. Thankfully, organizations exist that will pick, pack, and store your eCommerce products for you. According to, finding a reliable service capable of understanding and fulfilling your business’s needs can be difficult. If you are looking for one, you should read reviews, research, and try to find the organization that’s perfect for you.

Warehouse Locations

Warehousing is a term that’s used professionally by large eCommerce companies, usually used to refer to actual warehouses. With that said, technically anybody that is involved in the eCommerce industry and stores products warehouses them. For this reason, the most common warehouse locations are actually people’s garages, living rooms, and even bedrooms. The main reasons that people warehouse from home include that their businesses are too small to justify large-scale storage, warehouses cost too much, and because their businesses operate from home so it’s convenient. People are able to pack and ship orders from their front door. Delivery services will collect parcels from your front door these days, so business owners don’t even need to leave home, making home warehousing an easy option. However, when a business becomes large enough, home warehousing is no longer an option.

Benefits of Warehousing

Professional warehousing (in an actual warehouse) is a much better option than storing products at home. The reason for this is that with the aid of professional packers and shippers, businesses are able to pack and ship their products much faster, therefore ensuring that they reach customers more quickly. Additionally, professional warehousing improves the accuracy of your inventory tracking, ensuring that you don’t lose items. With that said, make sure that you store your products in a warehouse that takes product management and tracking very seriously. Finally, professional warehousing is a lot less stressful and infinitely more convenient.

Warehouse Management

As mentioned previously, warehouse management is extremely important. If the warehouse where you are storing your products does not take its warehouse management seriously, then you could lose a lot of products. This isn’t something that you want to have to deal with. To avoid improper warehouse management, make sure that you do your research and look around for the perfect warehouse. Read reviews, ask around, and interview warehouse managers. When you find a warehouse, speak to the manager and ask them what their inventory management is like, then ask for a tour of the warehouse.

Third-Party Warehousing

Third-party warehousing is the most common type of warehousing and involves outsourcing one’s warehousing needs to a third-party company (as already mentioned). This company will then manage all aspects of one’s warehousing needs, from picking to packing and shipping. Third-party warehousing is a much better option than running your own warehouse or storing products at home. It’s also much simpler. As mentioned already, you need to find a warehouse that takes inventory management and security seriously. The best way to do this is by reading reviews and checking out what people have to say online.

Improper Storage

If you do not use a third-party warehousing service or store your products in an actual warehouse, then you will inevitably experience problems. The most common problems experienced include items being lost, items being stolen, and wrong items being shipped. All of these things can seriously damage your business and its reputation. Poor warehousing can also lead to items being listed for sale that are no longer available, which again, can damage your reputation and result in unhappy customers leaving bad reviews. Warehousing is the most important part of your company’s daily operations, so it needs to be taken very seriously.

Warehousing is a very important part of running an eCommerce company. If you are starting your own, then at some point you will need to think about warehousing. The best way to do it is to outsource so that you can focus on running your business while a 3PL logistics company worries about shipping and packing.

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