E-commerce has become very popular in recent years and the market is expected to grow. According to markets and research, global eCommerce warehouse sales are expected to grow by $4 billion in the next four years.
Many business owners have converted their business into e-commerce. It is time to know how business models work and what is required. Some specific requirements to run an e-commerce business are different from other businesses. One such requirement that always does not focus on is where store e-commerce stock is and how it is managed: e-commerce warehousing and e-commerce warehouse management.
What is ecommerce warehousing?
E-commerce warehousing is the process of storing the goods that are sold on the internet. E-commerce warehouse management refers to managing all the processes that are involved in e-commerce business.
What are ecommerce warehouses?
E-commerce warehouse includes all different types of warehouses that are used to store e-commerce goods. In order to work in the proper way you need to store inventory in the e-commerce warehouse.
Private warehouses are those owned by large businesses. This includes wholesalers, distributors, manufacturers, large retailers, and online marketplaces. Private warehouses are more expensive than public warehouses because it was built on user need. This includes the size of the warehouse or the way in which the warehouse has been constructed to store specific types of products. The long-term revenues that come with such a warehouse make it valued to invest in, which makes them the seamless option for e-business SMBs, private traders, and retailers.
Public warehouses are owned by government agencies and rented to businesses. So their rates are under controlled by the firm. Although they are less advanced in size and functionality than private warehouses it was cheaper than others. Public warehouses are good choices for starting a new ecommerce business.
Government-owned eCommerce warehouse
Government warehouses are similar to public warehouses except they are owned by the government and work with them. Government-owned warehouses are generally provided security. So they are the best choice for storing ecommerce goods.
Smart warehouses are digital warehouses that use AI to help with their storage, fulfillment, and management requirements. In the other type of warehouse, a smart warehouse the automation is not limited to software. Drones, electric goods, robots, and carts are some kinds of technologies that you may find in a smart warehouse. These warehouses can provide more efficiency and productivity since most of the work is being done by machines. Amazon was the best example of an ecommerce business. Amazon uses digital equipment including robotic arms, mobile apps, scanning technology, conveyor belts, and picking robots to help their work smoothly.
What are ecommerce warehouse management systems and how can they help you?
An ecommerce business management system is a version of the traditional warehouse management system, but it is specially built to manage ecommerce warehouses. Here are a few fields in which ecommerce warehouse management systems can benefit more than traditional systems.
Designed for single-item orders
Traditional warehouse administration systems are used in warehouses that mainly deal with orders that cover several items. Therefore, they are planned to work with palettes, racks, and other large equipment to fulfill orders containing several products. Ecommerce business, however, primarily deals with single-item orders. According to People Vox, around 80% of orders that ecommerce businesses receive only contain one product. Therefore, ecommerce warehouses need a structure that can handle satisfying big sizes of single-item orders—this contains preparation the fastest route to each item, pick the correct item for each direction, stuffing it correctly, and delivery it to the exact address. An old system may be able to handle this, but the work may not be as effective as it could be when using a system designed for this volume of small orders.
Able to withstand demand variations
All warehouses see variations in customer demand, which is typically caused by changing trends and cyclic demands. Depending on the kind of professional, the variations could be for an exact invention or an entire category. For instance, near the end of the year, holiday-themed products are in high demand, but not so much during other parts of the year. Irrespective of what is being obtained, changes in demand are usually expected and easy to manage in traditional warehouses. Ecommerce, however, involves the same variations as outdated warehouses but requests increases and reductions by a larger ratio. To cope with this, you need a system to handle all the orders you receive as well as a waiter that can handle the traffic of all the customers using your website. An ecommerce WMS can deliver both of these structures.
Accurate inventory management
Having a correct count of your record is vital for any kind of warehouse, but it is especially significant for Ecommerce business. This is because these routine numbers are always directly reflected on your ecommerce website for your clients to see. Not expressive that you have in your routine and displaying incorrect quantities can leave a bad impression, hurt your sales, and make orders time-consuming to sort out. With accurate inventory management, you can display how many products you have left in routine (like Amazon does), giving customers motivation to buy from you before stock runs out. An ecommerce WMS can help you keep track of all of your external and outgoing inventory. And integrate with your ecommerce platform so that everything is synchronized and running easily.
Handling more returns
A typical return process in ecommerce starts when the buyer recruits the return, after which the business makes a return label, gathers the returned item, updates their record and the order position, and finally informs the client of the return position and repayment or replaced product. Each of these processes needs to be performed in this order, on time, and correctly for the return to be fully processed—an error in even one of these processes confusions up the flow for the rest.
3 benefits of using an outdoor eCommerce warehouse
Using an external eCommerce warehouse to supply your inventory can be extremely helpful. Joining with a well-known 3PL like Ship Bob provides ecommerce retailers access to an amount of external e-commerce business to select from. These state-of-the-art nirvana centers can be used to cut shipping costs and speed up delivery times (e.g., 2-day shipping).
Here are a few details why ecommerce warehousing is frequently top left to the experts.
1. Easier to stay organized
With more space and a better structural system, you’ll have an easier time handling everything from inventory chasing to customer orders. A 3PL provider can take the boring inventory management process off your hands and save tags on your products for you.
Moreover, Ship Bob’s branded contentment package keeps ecommerce business’s products up to date with real-time inventory amounts, delivery tracking, and much more.
“Ship Bob’s skill provides cost funds. Other 3PLs pass fees onto the client for work they do tell to manual courses because they lack the fulfillment skills needed to meet client expectations. Ship Bob’s knowledge has well removed the work of a package manager at other 3PLs, while only if immediate discernibility into a list and the ability to reply and make variations myself.”
2. More accurate picking and padding
In addition to ecommerce businesses 3PL services include warehouse picking and packing, taking much of the self-actualization process off your plate. They have highly specialized staff for each part of the order contentment process and others that work to classify supply chain optimizations. Their technology and processes help ensure the right crops are packaged and delivered on time for a good customer experience.
“If I’m employed to commission one of the most significant parts of my gainful, it needs to be in the digits of people who are truthful, familiar, and can do the job a lot better than me. Ship Bob was the seamless fit.”
3. Time to focus on growth
Successfully growing your business demands a significant amount of time, attention, and resources. By using a 3PL provider, you won’t get bogged down in the components of ecommerce warehousing. Instead, you can allocate your time and staff to other functions like expanding your customer base. Your e-commerce warehouse can smoothly help provide progress.
“We are growing certainly fast and won’t slow down anytime soon. With Ship Bob, we have the option to use more of their e-commerce warehouses to decrease shipping costs. Because Ship Bob has a lot of people to grip our instructions and extra warehouses we can enlarge into. We can scale up with ease as we last to grow quickly. If we completed our own eCommerce warehouse, it would be much firmer to hire people. And we’d unavoidably enlarge the space.”
3 Essential Steps to Setting Up Your eCommerce warehouse
Determine the warehouse space needed
Good warehouse development starts with the simple query: “How much warehouse space do I need?” A good opening point is to calculate how many palettes and boxes you plan on booming at any one point. And then increase that number by the footmark of your average pallet or box.
It’s okay if this number far exceeds your total warehouse footmark. Remember, your storage space should be intended in terms of cubic feet of space. Because you will likely be using storage and canceling systems to get the most out of your total space. Too often warehouses calculate only the storage space that they need, without sufficiently taking into account other warehouse operations.
Once you calculate the warehouse area you need, consider that you will need to have acceptable space for each of these stages:
- · Receiving (including unloading, rate control reviews, and labeling sites)
- · Storage
- · Growth
- · Forward performance (incorporate space for at least one day’s worth of orders)
- · Shipping value control
- · Palette breakdown areas
- · Extra area for revenues and “dead” stock
Depending on size, extra areas for whole performance, value-added processes, and so on
Determine your essential equipment
Warehouse equipment is essential—or not—depending on your goods, your volume, and your business model. That said, most eCommerce warehouses and Nirvana centers have the same basic goals: maximize space, increase efficiency in the flow of goods, recover visibility, and do it all in a way that’s secure for someone’s and for your interests.
This teaches us to four basic kinds of warehouse tools, based on warehouse procedures:
- Storage equipment: Storage equipment includes everything from large warehouse cancels and brackets to small baskets and drawers.
- Material Management Equipment: Material handling equipment is a broad category that includes transport tackle, unit load equipment, storage equipment, and location equipment.
- Packing and Delivery Equipment: This includes anything needed to collect, package, and label orders to make them for shipping.
- Barcoding Equipment/Inventory Management Software: In today’s modern warehouse, these pieces of tackle deserve a category of their own. Barcoding gear includes barcode readers, naturally, as well as printers, labels, and associated eCommerce software.
List the tools you anticipate requiring in each category. Then, add to your design where these bits of kit will be placed, used, and/or held.
Find ways to automate repetitive processes
Automation is a reliable way to improve efficiency. ECommerce has already made the browsing and buying process much more effective through robotics. Why not do the exact for your warehouse when offshoots are processed and dispatched?
Automation doesn’t have to be a complete difference to your warehouse. In fact, the best automation centers around small buys in single-task devices. Take the following as examples:
- Bar-code digital scanners can help update picking and eliminate cycle counts while cultivating accuracy.
- A transporter belt can safely move heavy containers from one area to another, removing the need to carry standard and thus putting less strain on staff.
- An optical maser DIM-weight scanner can automatically calculate the sizes of batches to ensure accuracy and speed up the shipping process.
- Machines for ordinary, boring tasks—for example, breaking down palettes or boxes—can save time and prevent boring stress for your employees.