E-commerce is the future of business. As a matter of fact, it is why many people are finding financial freedom and leaving their jobs. E-commerce businesses make their money by running online stores to sell different types of products to people worldwide.
The best thing about e-commerce is that you can run a business without ever handling the actual product. The key to running such businesses is warehousing.
Warehousing and distribution services are the backbones of e-commerce businesses and many businesses that produce large amounts of goods. They are a critical part of the supply chain for any e-commerce model. Sometimes, warehouse services will work with companies that offer shipping services that deliver items for an e-commerce shop directly to their warehouse.
In this capacity, they are offering fulfillment services for the e-commerce business.
Why Choose Warehousing and Distribution Services?
A warehouse and distribution service will perform several processes to be an attractive option for the client. Some of the critical warehousing services are:
1. Scaling
When you start an e-commerce shop, you must do inventory management yourself. You will likely have the inventory in your home and process all the shipping and deliveries yourself. However, you will have a lot to deal with when you start growing. A warehousing and distribution service will help you improve your game and grow more efficiently.
2. Management
When you start your business, you may have to pay one person for warehousing and another for distribution. While it may seem easier, management may become problematic as your business grows. By hiring a warehousing and distribution service, you can make sure that your costs are the lowest possible and that it is easier to manage.
What Are Warehousing and Distribution Operations?
A warehouse and distribution service company has different operations that allow them to provide the services they do. These are also key for scalable warehousing because they create an environment where improvements can be made all the time.
Here are the fundamental operations that happen at one of these companies:
Receive, Store, and Warehouse
This is the first step in warehousing and distribution operations. The warehouse receives the inventory from the client, catalogs it, stores it, and keeps a record of it. From here, you can control the inventory and track how much you have. You can also manage stockouts and headstocks, allowing them to make quick decisions.
Picking
When a client orders from your website, you can have the warehouse receive the order and the details. They then pick each item from your inventory in their flexible space and prepare the order.
Packing
After assembling the order, the warehouse packs it according to your agreement with them. They usually offer different packing options for the different clients they have.
Shipping and Distribution
Many companies that offer warehousing and distribution services will help you ship the order directly to the client. They will label it and negotiate with carriers for better rates. You can track the order in real-time and maintain communication with your client. This part, order fulfillment, is critical to an e-commerce business, so you need to find a trusted partner to handle your inventory.
Benefits of Warehousing
Easy Distribution
When your clients order from your website, you only need to send the details to your warehousing company. They will handle the packaging and distribution processes for your orders.
You can easily handle customers from multiple locations and have your products reach them with ease.
Accessibility
Because some of these warehouse companies have locations in different states and countries, you can have your products reach a broader customer base. Your orders will reach their customers in a much shorter time.
Better Inventory Management
Every time you send inventory to the warehouse, they catalog it all. You get to see all your inventory in real-time and manage it more efficiently. They will update the list every time an order is made, making it easier for you to keep track. You are also able to plan better when it comes to space management.
Also, the warehouse is a much safer storage location than your home. The warehouse is usually climate-controlled to prevent damage to short-shelf-life products. There is also better protection from environmental damage like storms or other natural disasters.
If anything goes wrong with your products, they are insured.
Better Service
When you use your home as a warehouse, you are limited in the amount of stock you can have. However, you can have much more inventory with the value-added services of a warehousing and distribution service. Moreover, the cost will be significantly lower than what you would have to pay for renting or leasing a space for your shop.
With more inventory, you can ensure that every time a client makes an order, they will find what they are looking for. You can also stock up on seasonal products and have them stay at the warehouse until you need them.
Cost Effective
Another key importance of warehousing is the cost and expenses that you save. Firstly, the storage space you get at a warehouse is so much bigger than if you rented out a place. Also, if you were to pay for storage, the cost would be significantly higher. With a warehouse, the space is flexible, meaning multiple merchants pay for the same space, lowering the cost.
Also, you pay much less for distribution services than if you were independent. The warehouse can get carrier services at much lower rates than individuals.
Maximize Your E-Commerce Business Sales with Warehousing & Distribution
Are you starting an online business? Is your business growing, and do you need more space? Want to consolidate your storage and distribution? With more than 5 decades of logistics experience, TOV Logistics has fine-tuned its core processes to take the stress out of managing the supply chain.
We have invested in the best technology and people to meet your customer’s expectations and help grow your business. Contact us today at 866-948-0059 or visit us online to request an estimate.
By Isaac Hyman