What Is Warehousing - DSers eCommerce Basics


Warehousing is storing physical products in a warehouse or storage facility before selling and distributing them to customers.

What Is Warehousing

Warehousing is storing physical products in a warehouse or storage facility before selling and distributing them to customers. Warehouses securely store and protect products, making it easy to track an item’s location, arrival date, duration of storage, and quantity on hand. In eCommerce warehousing, goods are stored until an order is purchased online, which allows the order to be delivered directly from the warehouse to the customer.

Why Is Warehousing Important

Warehousing is an integral part of the supply chain for physical products. So what warehousing can do for the inventory process?

  • Fulfill your orders efficiently

Warehousing allows you to store, ship, and distribute your products from one place. This makes it easy for you to control your inventory. It can also help save transportation costs, boost your flexibility, and lessen your staffing needs.

  • Add value to your operation

It enables the timely delivery and distribution of your items, thereby enhancing labor productivity and customer satisfaction. It aids in the reduction of mistakes and damage to your articles. Likewise, it prevents them from being lost or stolen throughout the order fulfillment process, allowing you to deliver on time and enhancing the perceived value of your brand among your consumers.

  • Reduces the risk to your products

Because warehousing is an insured process, you will be reimbursed to rebuild your inventory if any of your products are lost or stolen. Products kept in a temperature-controlled warehouse are also less likely to deteriorate or unintentionally alter color or texture.

How Many Types of Warehousing Are There

eCommerce warehousing is critical if you intend to sell online, significantly if your business is rapidly expanding and running out of space to keep your products efficiently. Here are five common warehousing types in the supply chain to consider!

Distribution centers are customer-centric and often located near the end user, ensuring that items arrive swiftly and in good condition. A distribution center may provide value-added services such as cross docking, pick & pack services, or product mixing or packing. Because distribution centers offer various services, they are outfitted with cutting-edge technology to ease the activities that take place within.

On-demand storage connects businesses needing warehouse space (temporary, seasonal, or to meet sales spikes) with warehouses with extra capacity.

Smart warehouses receive items, store them, pick them for orders, ship them, and keep an accurate inventory count using automated systems and related technology. They use technology to boost production, reduce mistakes, and minimize the number of individuals required to manage the warehouse.

Cold storage stores temperature-sensitive products at low temperatures. It extends the life of medication, perishable foods, plants, cosmetics, candles, and artwork. Cold storage warehouses also utilize refrigerated shipping for inbound and outbound shipping.

Bonded warehouses are warehousing types where imported products can be stored while customs fees are paid. When firms rent space from them, the authorities offer them bonds to ensure they will not lose money when their items are distributed.

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