Online eCommerce business is seeing rapid growth globally. The convenience online shopping offers makes it a preferable option for customers.
But, the high demand means that brands have to keep high inventory levels.
When we talk about a business’ product fulfillment and shipping logistics, warehousing is something that we simply cannot ignore.
Today, there is a wide range of warehouses available for eCommerce businesses. So, choosing the right warehouse is important for product fulfillment.
This article will give you a comprehensive review of 8 different types of warehouses. You can understand their specific features and choose the best one for your eCommerce business.
1. Smart Warehouse
A smart warehouse is a type of warehouse that is becoming increasingly popular among various businesses. The entire process of fulfillment and storage takes place with the help of robots and drones.
Big names in the eCommerce industry, such as Amazon, are quick to leverage smart warehouses. It helps them streamline the process to make their order fulfillment and inventory management accurate.
Benefits of Smart Warehouse:
- Cuts down expenses
- Reduces workload
- Less chance of human error
- Makes inventory management easy
- Improves customer satisfaction
2. Public Warehouse
The public warehouse is one of the most popular warehouse types for businesses. Governmental entities own these warehouses that you can rent for business or personal use. One of the best things about public warehouses is that they are available at reasonable rent.
Therefore, it is the go-to option for e-Commerce companies and startups. A drawback of public warehouses is that they won’t have the technological advancements you’ll get from a smart warehouse.
Benefits of Public Warehouse:
- Relatively accessible and affordable
- Best for new businesses
- An optimal choice for short-term storage
- A great option for seasonal businesses
3. Private Warehouse
A private warehouse is also one of the most popular warehousing types businesses use for storage. The ownership of these warehouses belongs to third-party entities. Hence, it is called a private warehouse.
The maintenance of the facilities and every other thing is the third party’s responsibility. Though they are a relatively expensive option, these warehouses give business owners more control over their inventory management.
Benefits of Private Warehouse:
- Offers more control over warehousing operations
- Provides options for customization
- Greater control over shipping timelines
4. On-Demand Warehouse
On-demand warehousing helps businesses to connect with companies that have excessive warehousing space. The rise in online eCommerce is making on-demand warehousing a popular choice.
It is a great option for businesses that experience a surge in demand during temporary or seasonal periods. Furthermore, it is a great warehousing option for merchants that want to combine their inventory needs.
Benefits of On-Demand Warehouse:
- Ideal for businesses to deal with a sudden high volume of inventory
- The optimal choice for similar companies to store their goods easily
- A budget-friendly option for businesses that have short-term warehousing needs
5. Cold Storage Warehouse
Some industries require warehouses that can accommodate temperature-sensitive goods. These warehouses can be in an entire building or occupy a small area in a normal warehouse. The regulated environmental conditions in these warehouses keep the inventory safe.
It is why they require special expertise to ensure everything is working properly. A slight issue in the temperatures can lead to significant inventory losses. So, warehouse operators need to keep an eye on the overall facility maintenance.
Benefits of Cold Storage Warehouse:
- The optimal choice for businesses that require space for perishable inventory
- Good choice for businesses that need specific temperatures for rare products, like plants, medicines, etc
- Makes accomplishing logistic processes easier
6. Bonded Warehouse
The bonded warehouse is where the imported items are kept before the completion of customs duties. Since the overall process for customs clearance can be time-consuming, the bonded warehouses can store the goods for the time being.
The governmental entities will provide the businesses with bonds to rent the warehouse. That way, it can ensure that businesses don’t have any decrease in the products once they order them. It also makes the bonded warehouse an attractive option for importers.
Benefits of Bonded Warehouse:
- No need to pay duties until the custom clears and releases the products
- A good option for businesses that deal with cross-border training
- Facilities can accommodate a wide range of products
7. Cooperative Warehouse
The cooperative warehouse is one of the unique types of warehousing options. Different companies come together to buy and own a warehouse. Working closely with each other can allow companies to fulfill their needs while saving money.
It is particularly common for farmers or wineries to own cooperative warehouses. It allows businesses to store their items in a shared space. As a result, they don’t have to spend too much on their inventory storage, leading to a higher profit for the co-op members.
Benefits of Cooperative Warehouse:
- Helps businesses save money in the long run
- Ensures that you have enough storage space at a minimal cost
- Allows businesses to divide the cost of storing and shipping fees
8. Consolidation Warehouse
Last but not least, consolidated warehouses are third-party storage centers where multiple companies can store their goods. They collect small shipments from various supplies and combine them into bigger ones. As a result, it becomes more economical to ship all the items in one area.
This feature makes it a convenient option for businesses that don’t have a huge amount of inventory. However, a drawback of this type of warehouse is that the shipments will be only for a particular area. Therefore, it can be difficult for a company looking to expand into different areas.
Benefits of Consolidation Warehouse:
- You don’t need to have a huge amount of inventory levels
- There isn’t a need for capital investments because of low-risk use
- Budget-friendly and saves time
- Allows your business to incur lower shipping costs for warehouse tenants
Warehousing is a need for various industries, but it is highly important for the eCommerce sector. The rapid growth in the demand for online goods makes it necessary for you to maintain a good inventory level for order fulfillment. Therefore, you can go through the different types of warehouses and then choose the right one for your business.