Selecting an E-Commerce Warehouse for Your Business

Selecting an E-Commerce Warehouse for Your Business

Considering investing in an e-commerce warehouse? The e-commerce industry is a force to be reckoned with in this day and age. While traditional malls and brick-and-mortar stores are suffering, e-commerce has skyrocketed — and it’s a safe bet that this trend will continue. Consumers greatly value the ability to order the apparel, home decor, and other items they need from the comfort of their own home. Even those who own brick-and-mortar stores are leasing warehouse spaces to accommodate those who prefer to shop online.

With that being said, selecting the right kind of warehouse for your business is a crucial decision. As with any other large investment, it requires careful consideration of several factors. These factors include your business’s scope of operations, what kind of products you’re selling, and the optimal location of a space. Business growth also complicates the deal, as it’s likely your needs will change over the years as sales and operations increase.

Before making that leap and leasing warehouse space to expand your operations, weigh these factors carefully to select the right space for your business!

1. Size of E-commerce Warehouse

One of the major things that holds businesses back from renting a warehouse is their assumption that their operations are too small for one. However, renting a warehouse with more space than you think you need often benefits businesses in the long run. The extra space allows room for growth and acts as an investment in the future of your business. Moreover, the size of the space isn’t just allotted for storing inventory. E-commerce warehouses often also house the packing and shipping operations, which require more space. Of course, your business will likely outgrow your space eventually. But regardless, your decision on size should factor in the potential of expansion.

2. Location

When shipping products, customers expect to receive their packages as quickly as possible. If a warehouse lies in a remote location, it’s much harder for a carrier to efficiently pick up and deliver packages. This can negatively impact customer satisfaction levels. Keep things as streamlined as possible by choosing a warehouse that’s fairly close to a carrier and other transportation hotspots. If for any reason shipping time is not a priority, you can cut costs by opting for a remotely located warehouse.

If you have a brick and mortar location as well, consider the proximity of your warehouse to your business. A close proximity is optimal for store owners and managers that want to drop in and check on the warehouse often. This can provide you with better oversight of and more confidence in your operations.

3. Workforce availability and cost

If you’re hiring your own team for the warehouse, consider the minimum wage and standard pay for employees in the area. Some locations have higher turnover and lower productivity rates than others. The more tasks you have that machinery can automate, the less you need to worry about human workforce factors.

4. Technology

Speaking of automation, the technological features of a warehouse greatly impact the efficiency of your business. Warehouse owners and landlords are increasingly outfitting their spaces with more features due to demand. Make sure to inquire about which warehouse management system (WMS) the owners use, the equipment, and how advanced their robotic equipment is.

5. Storage requirements of E-Commerce Warehouse

Depending on what you’re selling, you’ll need a warehouse that can safely accommodate that merchandise. For instance, food and beverage retailers require specific temperatures and industrial refrigerators to keep everything fresh. No matter what it is that you are selling, locate a warehouse that has the equipment and regulated temperatures for adequate storage.

5. Rent rates

Of course, cost is of the utmost importance when you’re investing in the future of your business. Dive deep into your numbers and projections to calculate the amount of rent that you can afford. Don’t be afraid to negotiate the numbers with warehouse owners and landlords, either. To be sure, there is always some amount of risk when expanding your business operations. However, you should never risk so much that you eventually go out of business.

6. Lease terms of E-Commerce Warehouse

Do you require a more flexible lease or a longer one? Are utilities included? Search available warehouses carefully to find a lease that fits your needs. Shorter lease terms are great for businesses that expect to grow quickly or simply want more flexibility. Good landlords and owners are always willing to negotiate these terms as well, so don’t shy away from inquiring about something you’d like to change.

Conclusion

Finding the right e-commerce warehouse for your retail business is a huge task. Nevertheless, it’s a crucial step for those who see expansion in their future. At REDHANDED, it’s our mission to connect businesses to spaces that are just right for them — without the costly broker fees.

Don’t go at it alone, don’t get caught red handed. Find your dream space on our website today!

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