Renting a Warehouse for E-Commerce Business? Read This First
Whether you own a distribution warehouse space or you are a retailer suddenly branching into the world of online sale, e-commerce is a very big deal. In fact, it is projected to expand at a rate of 10% over the next five years which is very exciting for all involved in the industry.
But before you go finding a warehouse to rent or entering into an office lease agreement, it is important that you know what is involved in creating and maintaining an e-commerce optimized warehousing and distribution space.
We have designed this post to help you understand what systems and strategies you will need when entering into an office lease agreement or renting a warehouse. Soon, you’ll be on your way to understanding the true needs of your e-commerce venture.
Inventory Control and Management
It is vitally important that you maintain an accurate count of your inventory and that you have the systems in place to ensure that all orders arrive at the proper location. The best way to handle this is with specialized software and a great deal of attention to detail on your part.
Information and Management Systems
You will likely be receiving a number of complicated orders over the internet. Issues like split orders and other special instructions can become incredibly difficult if you do not have the infrastructure in place to ensure that order information is crystal clear to whoever is responsible for filling the orders.
One of the more difficult things about an e-commerce business is knowing how much inventory is enough. The benefit of a physical location is that you can simply replace the item on the shelf should you sell out, but the difficulty of adjusting your inventory on your online platform means that you will likely benefit from having more inventory than you think you need. That way, you aren’t constantly changing your site every time a large order is placed.
Return Handling Strategies
Handling returns is often more difficult than handling orders. There’s the matter of refunding your customer, taking a new order, and several other tasks. You will need to have the ability to check quality on the returns and adjust your inventory before you reimburse your customer.
When you’re thinking of renting a warehouse or entering into an office lease agreement, it’s important that you understand the strategic and logistic needs you will face. Otherwise, you risk acquiring a space that does not truly fit what you will need in the long run.