Ecommerce Warehouse: What Is It and How to Find One?

Ecommerce businesses rely on ecommerce warehouses. Varied in size, location, and design, these warehouses offer physical spaces to store and manage the products sold by ecommerce retailers. Find out more on how vital these warehouses are to the supply chain and where to locate one.

Before understanding the purpose of an ecommerce warehouse, it’s important to know what an ecommerce business does. Ecommerce retailers buy and sell products that are available exclusively online, through an app or website, without customers having to visit a physical store.

Ecommerce businesses sell a wide range of physical products online. Examples include subscription boxes, electronics, and clothing. Home goods and electronics are also sold on ecommerce websites. Customers simply place their orders online and the goods are shipped to them.

What Is An Ecommerce Warehouse?

The entire process occurs without the customer having to visit a physical store. But retailers need a space to house the goods that customers buy online—here is where ecommerce warehousing enters. These vast spaces store the retailer’s merchandise and handle order fulfillment.

The warehouses may be owned and run by the retailer or managed by a third-party fulfillment provider or 3PL.  Ecommerce warehouses offer numerous benefits to businesses at any stage of growth and size. Utilizing a warehouse is more expedient than storing products in a home garage, for instance.

What Are The Benefits Of Ecommerce Warehouses?

Ecommerce warehouses are located across the country. This is advantageous for ecommerce retailers, since they can choose where to store their inventory. When products are closer to customers, shipping times are minimal, orders are received faster, and customer satisfaction increases.

Merchandise is organized when stored in an ecommerce warehouse. Organization is streamlined in these facilities due to real-time inventory tracking, shipment tracking, and trained labor forces who pick and pack with accuracy. The technology in ecommerce warehouses enhances customer experiences.

Growing businesses value time, which equals money. Delegating the order fulfillment process to a reliable ecommerce warehouse frees up a retailer’s time so they can focus on marketing and innovations. The time savings often offset the cost to utilize an ecommerce warehouse.

An ecommerce business can go awry without the services of an ecommerce warehouse. For example, inventory can become lost without the warehouse’s advanced management system. Incorrect orders may be shipped, and space can run out, especially in home garages or in-house storage.

What Are Different Types Of Ecommerce Warehouses?

Ecommerce businesses have access to a wide variety of warehouse types, each catering to specific storage and operational needs. Here’s a breakdown:

Fulfillment Centers

Fulfillment centers manage short-term storage and handle order processing, packing, and shipping directly to customers. Often operated by third-party logistics (3PL) providers, these centers are crucial for ecommerce businesses seeking fast and efficient fulfillment solutions.

Distribution Centers

Distribution centers serve as hubs in the supply chain, acting as intermediaries between manufacturers and retailers or fulfillment centers. They are commonly used in industries like grocery and often provide specialized storage options, such as refrigeration.

Private Warehouses

Private warehouses are owned and operated by a single business to store its own inventory. These facilities provide greater control and customization but come with higher costs, making them ideal for larger companies with consistent storage needs.

Public Warehouses

Public warehouses are shared spaces owned by third-party operators and rented out to businesses. They are cost-effective for small to medium-sized ecommerce companies and may include fulfillment services for an additional fee.

Cooperative Warehouses

Jointly owned by multiple businesses, cooperative warehouses offer discounted storage rates to co-op members. These facilities are often used by smaller companies seeking cost-effective storage solutions.

Smart Warehouses

Smart warehouses use advanced technologies such as AI, robotics, and drones to streamline storage and retrieval processes. These high-tech facilities reduce errors and improve efficiency but require significant investment, making them a premium option.

Government Warehouses

Owned by federal, state, or local governments, these warehouses store essential goods and supplies. Businesses can also rent space, benefiting from secure and affordable storage, though these facilities may lack advanced technology.

Cold Storage Warehouses

Cold storage warehouses maintain temperature-controlled environments, making them essential for storing perishable goods such as food and pharmaceuticals.

Hybrid Warehouses

Hybrid warehouses combine features of multiple warehouse types, such as offering both fulfillment and temperature-controlled storage, to meet diverse business needs.

Cross-Docking Warehouses

Cross-docking warehouses focus on minimizing storage time by transferring goods directly from inbound to outbound transportation. This type of facility is ideal for ecommerce businesses that prioritize fast delivery and low inventory holding costs.

How Ecommerce Warehousing Works

Ecommerce warehousing involves more than just storing products; it’s a comprehensive system designed to manage inventory and ensure product security while facilitating seamless order fulfillment. Here’s how it works:

1. Inventory Management

Effective inventory management ensures businesses know exactly what they have in stock, when to reorder, and where items are stored for efficient retrieval. This process tracks inventory changes in real time, optimizing storage and helping meet fluctuating customer demands.

2. Product Security

Securing inventory is critical in ecommerce warehousing. This includes measures like on-site security to prevent theft, sturdy shelving to minimize damage from improper stacking, and a well-organized system to prevent items from getting lost or misplaced.

3. Streamlined Operations

By combining efficient storage systems, inventory tracking, and security protocols, ecommerce warehouses are equipped to quickly fulfill orders. This ensures customers receive their products promptly, maintaining a reliable and efficient supply chain.

How Do Businesses Find An Ecommerce Warehouse?

Retailers must examine several factors before deciding on an ecommerce warehouse. The size of the business, the available capital and resources dedicated to a logistics strategy should be considered. A small startup that plans to scale fast ought to look at ecommerce warehousing.

Storage needs differ between ecommerce businesses due to the varied nature of the products they sell. For instance, retailers selling steaks or ice cream rely on specialty warehouses capable of storing cold or frozen goods at a safe, desirable temperature.

The location of the warehouse is equally important. Retailers with local customers meet their needs by partnering with an ecommerce warehouse in the area. However, when customers are located across the country, it’s advisable to choose warehouses that are in proximity to the customer base.

For example, an ecommerce retailer in San Diego with customers nationwide may have to fulfill orders in New York or Maine. Choosing a strategically located warehouse, such as in the Midwest, can cut down shipping times and reduce shipping costs.

When possible, visit a potential warehouse to assess its security measures, operational efficiency, and overall condition. The best ecommerce warehouses utilize technology to streamline operations and remain well-organized; they are also run by expert management. Meet the staff to improve the quality of customer service.

Online directories and listings can point businesses to ecommerce warehouses. Industry-specific directories deliver more targeted search results; they provide options that cater to specific warehousing needs, such as climate control and other special services. Networking and referrals are also useful.

Ecommerce retailers hunting for a reliable on-demand warehouse should look no further than OLIMP. We connect you to our vast network of warehouses across North America. Whether you’re an ecommerce business on the east coast or west, our services are designed to meet your business needs.

We provide flexible short-term or long-term ecommerce storage solutions, ideal for last-minute warehousing needs or seasonal fluctuations. In addition to convenient warehousing storage, OLIMP has warehouses in our network that provide cross-docking services and pallet rework. Our friendly managers provide you with customized warehousing solutions to suit your business.

Discover specialty warehouses through OLIMP. Businesses turn to us when they need cold storage warehouses, HAZMAT warehouses, and dry or frozen facilities. We also accommodate your needs for bonded and military authorized warehouses. Some of the warehouses in our network include equipment, like clamp trucks.

With no minimum storage terms, abundant warehousing space, and thousands of warehouses to choose from, it’s no wonder businesses partner with OLIMP to fulfill their ecommerce warehousing needs. Our warehouse rental options are flexible, designed to serve your business even as demand fluctuates.

OLIMP makes it easy to find the right ecommerce warehouse space anywhere in the country. Simply fill out our online booking form and be connected to a manager who can offer warehouse solutions. Visit us online today and find a warehouse in a prime location when you need it.