Globally speaking, experts think e-commerce sales will generate $3.914 trillion in 2021. Knowing how to set up and launch an e-commerce warehouse will increase your chances of success.
The pandemic has led to a boost in e-commerce sales and activity in the United States. You’ll be poised to profit off of the today’s booming e-commerce world if you set up a warehouse.
Doing business through an e-commerce warehouse is simple and effective. You deserve to know how easy and doable it actually is.
Here’s what you should know about setting up e-commerce warehouses.
Determine the Necessary Space and Equipment
You can’t choose a location until you know how many cubic feet you’ll need in terms of space. This includes storage space, aisle space, and more.
Calculate the number of pallets/cartons worth of e-commerce inventory you plan on storing at your warehouse, Then multiply it by your cartons’ or pallets’ average footprint. This will tell you how much inventory space you’ll need in terms of cubic feet.
Keep in mind that workers must be able to move around in order to pick items efficiently. Don’t sacrifice having a comfortable aisle width in exchange for more storage room.
Make a list of all the warehouse equipment you’ll need for your operation. That way, it’ll be easier to research which options have the best prices and quality level.
Automate Your Processes
Selling products online as quickly as possible requires you to use automation whenver possible. The more processes you’re able to automate, the less labor you’ll have to pay for. Plus, more often than not, it makes your workers’ lives much easier.
Sure, workers will need to receive training in order to navigate the automated processes. Once that’s done, though, it’s saves you money and eliminates human error.
Pick a Warehouse Management System
A warehouse management system helps you keep track of your warehouse’s ongoings. It’ll tell you exactly how many orders have been placed as well as which orders are getting shipped out. It also helps you create and read barcodes.
Warehouse management systems typically rely on software. Always read a software’s full information and reviews before purchasing it.
The acronym KPI stands for Key Performance Indicator. Measuring KPIs tells you how efficiently your warehouse is operating.
For example, order lead time tells you how long it takes for workers to fulfill each order. Meanwhile, measuring the return rate reflects how often items get returned. Tracking these KPIs and more will improve your overall business strategy.
Take it Easy
Letting an e-commerce fulfillment company handle your inventory is easier than setting up a warehouse on your own. They take care of nearly all aspects of order fulfillment on your behalf.
Working with a fulfillment company creates easy business opportunities for entrepreneurs. You don’t even have to hire a team or get access to space to start making money with them.
Your e-Commerce Warehouse Will Make You Richer
There are up to 24 million e-commerce stores online. Part of running an e-commerce warehouse involves maintaining a quick, well-formatted website.
Having a mobile-friendly website is one of the most important e-commerce essentials. Otherwise, you’ll be missing out on traffic that converts into sales or leads.
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