Top 5 Reasons Why Online Business Need Warehouse

By Ashutosh Jha → Last Updated on Saturday, March 23, 2019
Are you starting an e-commerce business and are wondering whether getting a warehouse is a sound idea for the enterprise?

One advantage of an online business is you don't need to rent physical premises. You can operate from your home and use drop shipping to ship merchandise to your clients.

5 Reasons why online business need warehouse

However, a time comes when it makes sense to get a warehouse for the business. Keep reading for the top five reasons why warehousing is a smart choice for your online enterprise.

Why Online Business Need Warehouse

1. Warehousing Supports Business Growth

The e-commerce industry in the U.S grew to $453.46bn in 2017. There is potential for you to expand your business and make incredible profits. However, you won't realize such growth when running the business from your garage.
You need extra space to store merchandise as the demand for your products grows. The most efficient and sustainable choice is to get a warehouse

Warehousing provides you with storage and inventory management solutions. As the business expands, you can rent out more space and deliver quality services to your clients.

2. Warehousing Promotes Economies of Scale

When you have limited storage space, you only buy fewer items at a go. Shopping in small scale leaves you at a disadvantage as you pay more for every unit. Also, you cannot get significant discounts.

A warehouse provides the space you need to make purchases in bulk. Thus, you can leverage discounts on merchandise and packaging and shipping supplies.

You enjoy economies of scale and make significant savings on your purchases. With reduced costs, you can pass the savings to your customers and gain a competitive edge over other sellers.

3. A Warehouse Guarantees Merchandise Security

Storing your products in a warehouse gives you peace of mind. You don't have to worry about theft and damage of goods while they are in storage.

However, for you to enjoy these benefits, you have to find the most secure facility for your needs. Check out this blog for a detailed warehouse security checklist you can use to narrow down the search.

Also, get a warehouse that is insured. If there is theft, fire, or any other accident, you'll be compensated for the losses incurred.

4. Warehousing Allows You to Handle Logistics

Most online businesses use drop shipping to ship products to customers. The entrepreneur transfers customer orders to the product manufacturer or a wholesaler who then ships the item.

Drop shipping has the following disadvantages:

  • You have no control over how goods are shipped
  • A customer can order an item that's already out of stock in the wholesaler's warehouse
  • Profit margins can be low due to high shipping costs

By renting out space in a warehouse, you get to handle all the logistics. These include confirming orders and shipping merchandise. You are in charge of stock management, and this enables you to update your store as products run out.

5. Warehousing Improves Customer Service

When you're handling all your customer orders, you're able to offer personalized services. You can create custom or branded packaging, send thank-you notes, and oversee shipping.

Cases of delayed shipments are minimal. Your customers enjoy high-quality and efficient services. This leads to better online reviews, increased leads, and more sales for your business.

Get a Warehouse for Your Online Business Today

Warehousing has more to offer than just availing space for your merchandise. It can promote business growth. Get a warehouse today and steer your online enterprise towards profitability.

Would you like to market your online business, get new customers, and make more sales? Contact me today for a free consultation on internet marketing.

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Ashutosh Jha

Ashutosh Jha is a professional blogger, Blog and IT Consultant. He writes about Blogging, SEO, Making Money, Internet Marketing and Web Design.
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