Ecommerce business owners may encounter challenges when their goods already outgrow the storage space and they do manual tracking of stocks which may be sometimes inaccurate and takes longer time to accomplish. These concerns happen when they use their houses to store the products they sell online. According to E-Commerce Statistics published by Forbes Advisor,the global e-commerce market is predicted to reach a total of $6.3 trillion this year. With the growth of online businesses in recent years, ecommerce warehouses have emerged to cater to the needs of online retailers such as storage and distribution.
Ecommerce warehousing provides a better solution in handling large volumes of orders that can be delivered fast and on time to meet the demands of online shoppers. Proper implementation of ecommerce warehousing strategies can improve the processes of an online business that affect its efficiency and revenue. Here are 5 cost-efficient warehousing strategies that ecommerce retailers can practice to boost their sales.
5 Strategies for Ecommerce Warehousing
1. Distribute Your Inventory
As an online business owner, you can distribute your inventory across several warehouses. This lessens the shipping costs because the order is quickly prepared and shipped from the closest warehouse to the customer. This is one of the warehousing strategies that provides a faster and more cost-efficient delivery to satisfied online clients who can repeat their purchases.
2. Invest in a Warehouse Management System (WMS)
Among the ecommerce warehousing strategies that you can implement in an online business is to invest in a Warehouse Management System software that provides real-time insights into your inventory and product availability. It can help with the efficient operation of your business which can boost your revenue. It can predict the inventory of your business to determine when your stock might run out and you need another supplies. Warehousing strategies such as this prevent you from taking many orders when there is no longer sufficient supply to fulfill the orders. Or even declining orders without knowing that the supplies are just hidden somewhere in your storage space.
3. Combine Your Ecommerce Store with other Tools
One of the warehousing strategies that you can do as an online retailer is to integrate your ecommerce store with modern software that will make inventory management easier for you. Aside from being updated on your stock availability in real-time, you can reorder in advance to replenish your supplies before a shortage can happen.
4. Set Inventory Minimums
Finding the right balance in inventory is easier said than done. It can hurt the online business’ revenues and cause high inventory carrying costs if you order too many products while insufficient supplies can lead to out-of-stock notices and unhappy customers choosing to buy from your competitors. To avoid these things from occuring, warehousing strategies such as setting inventory minimums must be implemented. This can be done through software that lets online businesses set reorder points so they can receive a notification when a product has already reached a specific limit. This way, you will have steady stocks and fulfill the orders of your online shoppers.
5. Hire Third-Party Logistics Companies (3PLs)
If you are having problems with your storage space and labor, one of the best warehousing strategies is to choose a 3PL that can support your various online business operations. It can help you with distribution from order fulfillment to bulk storage of your goods. Aside from helping you avoid expensive warehouse transfer, a 3PL assists when sourcing labor is a challenge.
ALSO READ: Warehousing Solutions to Common Logistics Management Issues
Ecommerce warehousing strategies are useful for online business owners who want to improve their profits. Using the best strategies is essential as there are many competitors in the market these days that offer similar products and services. Modern technology such as warehouse management systems software can help in the efficient operation of an ecommerce business. It can predict the inventory so business owners can have an idea of when their stocks will run out. This helps them to reorder and keep up with the orders of their satisfied customers.
Worklink Services, Inc. (WSI) is a logistics company that has been providing reliable courier, forwarding, trucking, and logistics services in the Philippines since 1999. Among its efficient services include Warehouse Management which provides cost-efficient warehousing and distribution services to help clients grow their business. It offers warehouse management services for companies that need a functional space for the easy sorting and storage of their goods. In need of a warehouse for your growing ecommerce business? WSI can help.