12 Types Of eCommerce Warehouse: Which Is The Best For Your Business
Today, the eCommerce warehouse is different from traditional warehouses. Before, it looked like a huge storage room filled with merchandise. But now, it has a fresh new look with its function and inventory fills. So, first, be familiar with different types of eCommerce warehouses. Then, you decide which is the best for your business.
A bonded eCommerce warehouse stores imported goods before custom duties require payment for them. It allows your products to be sold first. Then, you pay for your duty from the sale proceeds. In addition, it permits the storage of restricted items until you complete the necessary paperwork. Plus, it has a facility that lets you keep your products safe for an extended period.
A bonded warehouse keeps your products duty-free while waiting for buyers.
Climate-controlled is an eCommerce warehouse storing items with a specific temperature requirement. Its temperature range depends on the products stored. For example, the humidity-controlled environment is for fresh fruits, vegetables, and flowers. Freezers are for frozen goods.
If your goods are temperature dependent, you must have a climate-controlled warehouse.
Cold Storage Warehouse
From the name itself, cold storage eCommerce warehouse mainly stores temperature-sensitive products. These are items that must be at a low temperature all the time. Examples are perishable foods, medicine, plants, cosmetics, candles, and artwork. In addition, cold storage warehouses use refrigerated shipping for inbound and outbound. As a result, you won’t lose profit caused by stale products.
Get a cold storage warehouse if you need to maintain a low temperature to keep your products living longer.
A consolidated warehouse brings small shipments from various suppliers. Then, it groups the products together for larger shipments. Afterward, it distributes the items to its buyers. But, all of these shipments must be in a similar geographical location.
The consolidated warehouse is economical to order fulfillment. Moreover, it requires a minimal capital investment and inventory volume. That’s why it is ideal for new startups and small businesses.
A cooperative eCommerce warehouse is owned and managed by cooperative organizations. Examples are winery and farmer co-op. It allows co-op and non-co-op members to store goods. However, regular members benefit more from incentives and reduced rates.
If you want to maximize your advantages as a co-op member, join for cooperative warehouse.
A distribution center is not a warehouse. But it holds the same function of holding items. However, a distribution center keeps products for a shorter period. Also, the products coming in and out have a higher velocity. Plus, it is customer-centric. So your products get delivered fast in good shape.
Distribution centers provide value-added services like pick and pack, cross-docking, and product mixing. So, a distribution center is not bad if you want a better customer experience.
As its name implies, the eCommerce warehouse is owned and controlled by the government. It primarily stores goods owned by the national government. An example is the seaport storage facilities. Nevertheless, even private business owners can rent it too.
Government warehouses are clean, well-managed, and regulated. Also, it is secure, fireproof, and disaster ready. Mostly, it charges affordable rates, but it comes with a consequence. For example, if you fail to pay your rent on time, the government will seize and dispose of your goods as your payment. A government warehouse has low rental rates with government regulations.
On-Demand storage is a thriving eCommerce warehouse. It connects business that needs a warehouse space with an excess area ready to use. Also, it operates based on business owners filling the available space. So, it is ideal for businesses that handle seasonal, temporary, and sales in spike. As a result, pricing is pretty competitive. Some charge by square footage, while others per pallet.
In addition, the rental payment is monthly. You pay for the space, inventory management software, on-site staff, and shipping services. Plus, you can select your term – monthly or yearly storage rights. Try out on-demand storage if you want to lease a flexible warehouse space.
Pick, Pack & Ship Warehouse
A pick, pack & ship eCommerce warehouse involves fulfillment service. The process begins once an order comes in, whether from a physical or online store. Then, the warehouse prepares the pick list of products. Next, the automated system or staff finds the stock in the warehouse. Once the order is complete, they pack, label, and ship it directly to the customer’s location.
A pick, pack, & ship warehouse lets you fulfill customers’ orders without sweating.
Large retail corporations and online marketplaces run private eCommerce warehouses. Sometimes, manufacturers, wholesalers, and distributors own one. Private companies purchase and store merchandise in bulk in preparation for peak seasons. Then, it uses a systematic order distribution.
The private warehouse is a proprietary warehouse that warrants capital investment first. But it is proven cost-effective after a long period. So if you’re one of the established companies, private warehousing is what you need.
A public eCommerce warehouse is either government-owned or semi-government-owned. It permits private companies and small and midsize businesses to store goods by paying the rent. A public warehouse is highly advisable for small businesses and startups. Its storage facility keeps products for a short-term period. In addition, it is affordable, accessible, and suitable for short-term storage needs.
If you are not in a position to have a warehouse, the public warehouse is a great option.
A Smart eCommerce warehouse has interconnected technology and automation system. It receives products and puts them away while waiting for the customer’s order. Then, it picks and ships the orders while maintaining an accurate inventory count. The systematic technology increases products while minimizing errors and human effort to run the warehouse.
Get a smart warehouse if you prefer artificial intelligence for storage and fulfillment services.
Each type of eCommerce warehouse has its own purpose. Whichever you choose, ensure that you can maintain the short-term and long-term distribution needs. Red Stag Fulfillment is a great choice. It performs and functions various services with 100% guaranteed accuracy and zero-shrink. Also, it accommodates special handling needs for heavy, oversized, and fragile goods. Plus, it has a fast turnaround time at an affordable shipping rate. So, work with Red Stag to save funds on shipping, storage, and processing expenses.