How to Get a Warehouse: A Comprehensive Guide for eCommerce Businesses

Introduction: The Growing Importance of Warehousing in eCommerce

In today's rapidly evolving global marketplace, efficient warehousing has become a critical component of a seamless worldwide supply network. The surge in eCommerce has not only revolutionized consumer purchasing habits but has also transformed how entrepreneurs view the distribution and warehouse business. This growth has led to an increased demand for warehouse space, especially for facilitating last-mile deliveries.

The rise of eCommerce, coupled with consumer expectations for same-day and next-day shipping, has placed immense pressure on retailers, transportation companies, and distribution centers to make fast, effective deliveries. For those just starting their eCommerce journey, finding a suitable warehouse and partnering with an excellent shipping solutions company is crucial for creating a seamless customer delivery experience.

Why Finding the Right Warehouse is Crucial

Warehouses serve as vital links in the supply chain network for both domestic and global markets. The choice of warehouse significantly impacts the speed and efficiency of your supply chain. In the current competitive landscape of the eCommerce industry, entrepreneurs and supply chains are constantly vying for an edge, particularly in terms of overall product cost and delivery time.

When done correctly, warehousing can contribute to a faster flow of products through the supply chain, making it one of the most critical factors to consider when selecting a warehouse. As an entrepreneur, your chosen warehouse should meet the general objectives of warehousing, which include:

• Providing basic storage services
• Ensuring efficient accessibility
• Facilitating increased turnover
• Improving production
• Decreasing shrinkage
• Offering optimal safety for products in transit

By choosing a warehouse that meets these objectives, you can minimize the chances of customer complaints due to damaged products and ensure a smooth supply chain operation.

10 Essential Factors to Consider When Selecting a Warehouse

Selecting a reliable warehouse to store your products can be overwhelming and confusing. Each eCommerce entrepreneur will have specific warehousing needs that should be addressed by their chosen warehouse. While some features, such as warehouse location and layout, are non-negotiable and must align with your business needs, there are several essential factors to consider when selecting a warehouse. Let's explore these factors in detail:

1. Location

Location is paramount when choosing a warehouse. Ensure that the warehouse is reasonably close to your customers to enable timely and cost-effective deliveries. Before making a decision, research transportation costs from the warehouse to your customers' most common final destinations. Selecting a warehouse in the right location will help you meet and exceed customer expectations by enabling quick deliveries.

The importance of warehouse location applies to all types of eCommerce businesses, whether you're a regional retailer, a national supplier, or an international conglomerate. Having warehouses strategically located to reach your customer base will minimize costs and delivery times.

2. Accessibility

Consider how easy it is to access the warehouse to prevent potential delays in order fulfillment. Ensure that the warehouse meets the specific prerequisites your goods require. For businesses heavily involved in importing and exporting, choosing a warehouse near a major port can be advantageous due to the available infrastructure.

When evaluating the accessibility of a warehousing facility, consider the following factors:

• Access to public transportation
• Road conditions and safety
• Nature of traffic
• Proper road signage
• Highway interconnectivity

Choosing a warehouse location with congested roads, poor signage, and highways without exit ramps can lead to excessive fuel consumption, wasted time, and increased accident rates. These issues can result in higher shipping costs and delayed deliveries, negatively impacting the relationships between suppliers and customers.

3. Diverse Capabilities

Warehousing facilities with diverse capabilities often provide better storage services compared to those with a basic warehouse layout. Opting for a warehouse that offers integrated solutions ensures effective and seamless storage and distribution services. Engaging with a warehouse that provides a wide range of services offers assurance of reliable services and an efficient supply chain network.

For instance, asset-based warehouse solutions typically provide more value compared to traditional non-asset warehouse layouts in terms of cost and operational efficiency. Asset-based providers invest heavily in their facilities, trucks, and employees, allowing them to offer a higher level of service compared to traditional warehousing service providers.

4. Experience

To determine the experience of a warehouse business, check its operational history. Finding out when the warehouse was established provides insights into its longevity and ability to withstand the test of time. Match the age of the facility with its ability to cope with technological advancements that allow warehousing processes to flow efficiently.

It's also crucial to establish whether the warehouse has experience handling products from your specific industry. For example, if you deal with food products, finding a warehouse with expertise in handling food ensures that it will meet strict food storage standards.

5. Nature of Employees

Employees play a crucial role in the handling and storage of goods in a warehouse. As such, the nature of the employees should be among the key factors to consider when selecting a warehouse. The presence of a reliable and experienced workforce in a warehouse is an added advantage. Key aspects to check include:

• Necessary skills to handle special products
• The ratio of warehouse size to the number of employees
• Employee training and expertise

Ideally, you want a good size-employee ratio to ensure there is enough staff to handle the volume of goods the warehouse deals with, providing the attention your products deserve.

6. Association Memberships

Before engaging the services of a warehouse, check whether the facility is an active member of established associations, such as the International Warehouse Logistics Association. Warehouses with such affiliations provide additional credibility for their services. This also demonstrates the warehouse's willingness and commitment to providing services according to the association's warehousing standards.

7. Technology

Advancing technology has led to better service provisions in all sectors, including warehousing. When evaluating a warehouse, inquire about their warehouse management system. Confirm whether the company's processing and supply chain systems can be integrated with shipping companies and other essential services.

Warehouses embracing advanced technology, such as drones, pick-by-vision systems, and electronic data exchange, are better equipped to provide smooth operations in today's fast-paced environment. The adoption of advanced technology in warehousing is critical for ensuring efficient warehousing operations and staying competitive in the market.

8. Additional Services

While most warehouses provide basic storage and shipping services, it might be more beneficial for you to choose a warehouse that offers additional services. If your warehousing operations can include packaging, labeling, dispatching, quality control, and reverse logistics, it can save you significant time and money. These value-added services can streamline your operations and provide a more comprehensive solution for your eCommerce business.

9. Client Profile

Consider the warehouse's client profile when making your decision. If the warehouse is accustomed to handling storage services for small companies with simple warehousing requirements, they may not be equipped to handle the advanced needs of larger companies. Conversely, if the warehouse primarily serves established brands and you are a mid-sized company, ensure that you're not paying for unnecessary services and that you receive the same level of customer service as larger clients.

10. Associated Risks

Once you contract a warehouse service provider, the risks of handling, storing, and shipping products shift to the warehouse. As such, they should be aware of the risks associated with these responsibilities, have safety procedures in place, and offer compensation plans. This requires the warehouse business vendor to have insurance coverage that addresses these responsibilities.

Improving Your Operations with the Right Warehouse

Selecting the right warehouse is a critical decision for eCommerce entrepreneurs. While the future of warehousing looks promising, it's important to note that the industry has been affected by recent global events, such as the COVID-19 pandemic. These challenges have created risks to supply chains, with manufacturers and retailers facing potential production halts.

Nevertheless, despite these challenges, warehousing continues to play an essential role in fulfilling shipping requests and maintaining a smooth supply chain. By carefully considering the factors outlined in this guide, you can make an informed decision when choosing a warehouse that aligns with your business needs and helps you meet customer expectations.

Conclusion: Partnering for Success

Finding the right warehouse is crucial for the success of your eCommerce business. By carefully evaluating factors such as location, accessibility, technology, and additional services, you can select a warehouse that not only meets your current needs but also supports your future growth.

At FreightAmigo, we understand the importance of efficient warehousing in the global supply chain. Our Digital Logistics Platform is designed to help businesses like yours streamline their logistics operations, including warehouse selection and management. By leveraging our expertise and technology, you can optimize your supply chain, reduce costs, and enhance customer satisfaction.

Whether you're looking to expand your warehousing capabilities or seeking a more efficient logistics solution, FreightAmigo is here to support your journey. Our comprehensive Digital Logistics Solution can help you navigate the complexities of modern supply chain management, ensuring that you have the right warehousing strategy in place to meet your business objectives.

Don't let warehousing challenges hold your business back. Explore how FreightAmigo's Digital Platform can transform your logistics experience and help you achieve your eCommerce goals. Contact us today to learn more about our services and how we can support your warehousing needs.