E commerce Warehousing eCommerce Warehouse

How E-commerce Warehousing Works – Complete Guide

E-commerce warehousing is the process of storing inventory for online retailers. It allows companies to reduce the time it takes to get products to customers and to avoid the costs associated with shipping goods back and forth. E-commerce warehousing can also help businesses track their inventory and make better decisions about which products to sell.

E-commerce Warehousing Basics

E-commerce warehouses are facilities where online retailers house and organize their inventory. They can be an economical solution for small businesses that don’t have the space to store their products in-house, and they offer a variety of features that larger retailers may not have.

  • E-commerce retailers must have a warehousing strategy in place to keep their products and inventory in good condition.
  • A common warehousing method is stock keeping units (SKUs). SKUs are unique product identifiers that help identify products and track inventory levels.
  • E-commerce warehouses should have an automated system to manage inventory levels and shipments.
  • Proper storage can prevent damage to products and help streamline the e-commerce supply chain.
  • Warehouses should have a system in place to monitor environmental conditions and ensure that products are safe to store and ship.
  • Proper planning can help e-commerce warehouses optimize their resources, which can lead to increased efficiency and cost savings for the business.

More on the basics

  1. Size: E-commerce warehouses come in a variety of sizes, from small closet spaces to large open areas with room to grow. It’s important to choose one that’s big enough to accommodate your business’ current needs but also fits within your budget.
  2. Storage: E-commerce warehouses typically offer different storage options, including pre-made racks and shelves or the ability to customize your own arrangements.

Models of e-commerce warehousing: Flexible, Semi-Flexible and Fixed

E-commerce warehouses are typically classified into three models: flexible, semi-flexible, and fixed.
Flexible warehouses use a wide variety of storage methods to optimize space usage. Semi-flexible warehouses offer some degree of customization but require more attention to detail to ensure efficient operations. Fixed warehouses offer a more rigid structure with predetermined dimensions and configurations that are difficult to change.


The benefits of each model vary depending on the specifics of the e-commerce business. Flexible warehouses can be beneficial for companies that need more room to grow, while semi-flexible warehouses may be more appropriate for companies that need fewer storage options but want greater flexibility in how the space is used. Fixed warehouses are ideal for businesses with predictable needs and limited storage space.

E-commerce warehouse management considerations

Warehouses are a key component of e-commerce operations. They can store products, organize and manage inventory, and help speed up the process of getting products to customers. There are a number of factors to consider when setting up an e-commerce warehouse, including the size of the warehouse and its location.

One important factor to consider is the size of the warehouse. A small warehouse can store only a limited amount of products, while a large warehouse can hold an unlimited number of products. The location of the warehouse also plays a role in how efficiently it can operate. A warehouse located close to customers will be more efficient than one located far away from customers.

Another consideration when setting up an e-commerce warehouse is how it will be organized. Products should be organized according to category or type, and each product should have its own designated area within the warehouse.

E-commerce Warehousing Stats:

The use of e-commerce warehousing has become increasingly popular in recent years, as it offers several advantages over traditional warehouse storage methods. These advantages include decreased processing time and the ability to quickly respond to customer demands. In addition, e-commerce warehouses can be more efficient when it comes to storage space and inventory distribution. Let’s look at some statistics on the use of e-commerce warehousing, as well as some tips on how to optimize your warehouse for online sales.

  • In 2017, online sales reached $453.46 billion
  • The top three e-commerce retailers accounted for 54% of total online sales in 2017
  • E-commerce warehouses account for 10% of all warehouse space in the US
  • A study by Intershop found that 88% of retailers who use an eCommerce warehouse believe it has helped their business
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Warehouses can save time and money by reducing the number of orders a company needs to process. E-commerce warehouses are also beneficial because they allow companies to outsource some work to a third party while still having direct control over the shipping process.

Benefits of E-commerce Warehousing

E-commerce warehousing is a term used to describe the process of storing products for sale on the web. Benefits of e-commerce warehousing include:

1. Reduced order processing time: E-commerce warehouses often have faster order processing times than traditional brick and mortar stores, due to the ability to quickly scan and digitize products.
2. Increased sales: E-commerce warehouses can help increase sales by providing a more organized and easy-to-shop online store. Customers are more likely to buy products that are easily accessible and in stock.
3. Reduced shipping costs: By storing products in an e-commerce warehouse, companies can avoid expensive shipping costs associated with transporting items from their suppliers to their customers.
4. Faster delivery times: By consolidating orders from various suppliers into one location, e-commerce warehouses can speed up delivery times for online shoppers.

Read: Tips For Launching An eCommerce Business On A Shoestring Budget

E-commerce Warehousing Technology

We already said an e-commerce warehouse is a type of storage facility used by online retailers to store their product inventory. Warehousing technology can play a role in the management and optimization of an e-commerce warehouse. When selecting warehousing technology for an e-commerce warehouse, it is important to consider the following factors:

  • Space requirements: The space requirements of an e-commerce warehouse vary depending on the size and type of retailer.
  • Level of automation: Automation technologies such as robotization, palletizing, and containerization can help minimize the workload for employees while improving efficiency.
  • Ability to track inventory: Tracking inventory is essential for making informed decisions about product supply and demand. Various inventory tracking solutions are available, including barcode scanners, RFID tags, and computerized stock control systems.
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E-commerce Warehousing Solutions

The online retail industry is booming and with it, the need for e-commerce warehouse solutions. These solutions can help stores manage their inventory more efficiently and ensure that products are available to customers when they need them. There are a number of different e-commerce warehouse solutions on the market, so it’s important to choose the one that’s right for your business.

Here are some factors to consider when choosing an e-commerce warehouse solution:

  • Size of your business: The first factor to consider is the size of your business. If you have a small business, then a self-hosted e-commerce warehouse solution may be best for you. On the other hand, if you have a larger company, then you may want to look into an enterprise-level solution.
  • Technology requirements: Another key factor to consider is your technology requirements.

E-commerce Warehousing trends

Warehousing has been a necessary evil for e-commerce businesses for years now. The process of storing and managing products is time-consuming and expensive, but it’s necessary to keep inventory levels low.

However, the landscape of e-commerce warehousing is changing rapidly. More and more businesses are turning to warehouse automation to handle their logistics needs. This saves time and money, while ensuring that products are always in stock.

Another trend that’s reshaping the warehousing landscape is e-commerce fulfillment center (FCC) growth. These facilities help retailers quickly and efficiently send products to customers’ homes. This can be a huge advantage over traditional methods like shipping directly from the manufacturer.

Finally, there’s increasing interest in using drones for product delivery purposes.


eCommerce warehousing can save businesses time and money by providing an organized and efficient way to store products. By properly planning an ecommerce warehouse, businesses can ensure a smooth online shopping experience for their customers.

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