8 Different Types of Warehouses For eCommerce Business
Order fulfillment is a vital process in an eCommerce sector. In an order fulfillment process, the warehousing system plays a vital role. Did you know that there are different types of warehouse systems? In an eCommerce sector, there are eight different types of warehouses.
Here, in this article, we are going to discuss eight different types of warehouses. Most people consider that there are no categories of warehouses. So, while choosing the warehousing you must know the different types of warehousing services.
1. Public Warehouses
These types of warehouses are under governmental bodies. They provide these warehouses to the private companies to store their raw material or finished product. Public warehouses provide space for business purposes and personal uses.
If you are running a small size business, then you may need space to store your goods for a small duration. The public warehouses are not technologically advanced, but they are cost-efficient and easily accessible.
2. Private Warehouses
These types of warehouses are owned by a private body such as wholesalers or distributors or manufacturers. The large retailers also have their private warehouse. The private warehouses are expensive as compared to the public warehouses. If any business owner wants to store the goods in a warehouse for a long time, then a private warehouse is a great option.
3. Bonded Warehouses
This type of warehouse is specially designed to store imported goods before paying the customs duties. The authorities who are running these kinds of warehouses sign a bond with the eCommerce business owners before providing space to them.
This bond will ensure that the warehouse owners will not lose money at the time of releasing products from the warehouse. These types of warehouses are perfect for importers because they can store their products in these warehouses for a long time, and they do not need to pay duty taxes.
4. Smart Warehouses
It is clear for the name that these types of warehouses are integrated with the latest technology devices. In smart warehouses, various processes of order fulfillment are automated due to Artificial Intelligence technology. Various big eCommerce corporations store their products in smart warehouses. These types of warehouses are full-fledged enterprises that receive a huge volume of orders every month.
5. Consolidated Warehouses
The consolidated warehouse is also a kind of warehouse where small shipment from various suppliers is stored. These shipments are integrated and form large shipments. Finally, these are distributed to the buyers. But the consolidated warehouse receives a shipment from one geographical location only.
The consolidated warehouse is cost-efficient, and they can efficiently help the eCommerce business owners to deliver their products at the doorsteps of the consumers. These kinds of warehouses are good for small business owners or people who are running a start-up.
6. Cooperative Warehouses
Cooperative warehouses are owned by a group of people or an organization. These warehouses are used by cooperative warehouse members as well as outside members. But the cooperative warehouse members store their goods at a lower price.
7. Government Warehouses
These types of warehouses are directly owned by the government, like the warehouse at the seaport. The government warehouses provide the space for storage at a reasonable price. In case the business owner fails to make a payment at the right time, then the governmental authority has the right to recover the rent by selling their goods in the warehouse.
8. Distribution Centers
The distribution center is another kind of warehouse where storage space is built to fulfill the specific requirement of the eCommerce business owners. The distribution centers are good for storing items for a temporary basis. The distribution center receives products on a large scale, and they distribute the products to the retailers or directly to the customers.
In the distribution center, the products are stored for a small period. If the perishable items are received by the distribution center, then they will distribute them in one day. Usually, the distribution centers offer their storage space at a low price.
Choose the Best Type of Warehouse
As we have discussed, there are eight different types of warehouses. Each type of warehouse has pros and cons. Thus, according to your needs and requirements, you have to choose the best one.
For instance, if an e-commerce business owner is running a food industry, then he or she must opt for the distribution center.
It is so because the distribution centers can receive a huge volume of orders and they can frequently distribute the products. If the business owners are involved in cross-border, the distribution centers can help in shipping their products quickly at lower prices. Thus, according to the business requirement, you must choose the right warehousing system.