8 September, 2022 |

Due to the dynamic development of e-commerce, more and more people are thinking about starting an online store. Preparing a website is one thing, but it takes much more for a successful business. Planning requires, among others the process of selling and storing goods.

Although your store will operate in the virtual world, you are well aware that the goods need to be stored somewhere. If it is small in size – in the first stage, you can store it in the house, garage or basement. However, this is not the final solution. The storage problem arises when there are more and more orders and you have nowhere to keep your products. What to do then?

Rental of warehouse space

At the beginning, you can decide to rent a self-service container. Renting such a room costs several hundred zlotys per month. Such services are provided in every major city. The warehouse space can be adapted to the gradually growing needs of the store. At the beginning, one small box is enough, and later you can decide on a larger container or even several rooms.

Another way is to rent a business premises or a warehouse, but this is associated with higher costs, in the order of several thousand zlotys. Renting a warehouse is not the cheapest investment and novice entrepreneurs can rarely afford this option. However, as your business grows, you will earn more, so this solution will also become achievable. Your own warehouse has many advantages and you can have access to the goods at any time. It is very important if you want the package to reach the customer as soon as possible.

When deciding on this solution, first of all, you should pay attention to:

• proper estimation of the demand for space so as not to overpay for the unused space;
• free access to the warehouse (at any time) to ensure an uninterrupted system of deliveries to customers;
• security, meaning covering the facility with a security or monitoring system, as well as a fire protection system. Some companies even offer insurance for stored property.

Dropshipping

It is a completely different solution in terms of logistics, which does not require any space for storing goods. You sign a contract with the manufacturer, after which it is up to you only to acquire the customer. It is the company you work with that stores the goods and handles the shipment. Unfortunately, this option does not apply to standard e-shops that sell their own goods.

Fulfillment

In the article Fulfillment we explained that its essence is to transfer partial or full handling of orders and logistics processes to a specialized external company. The store or online retailer using this service does not need to have its own warehouse. The external company takes over the responsibility for storing, completing, packing and shipping the goods. It looks like this, that orders from your e-shop website go directly to the company you work with. It is she who prepares the goods for shipment and hands it over to the courier.

Which solution you choose depends on several factors, including: what budget do you have, what is the scale of your business, how many orders you complete per month, and the dimensions of your goods. Before making a decision, it is worth analyzing the advantages and disadvantages of different solutions and making a wise decision.