The eCommerce industry is experiencing a remarkable surge in growth as consumers from all walks of life become increasingly comfortable buying products online, ranging from clothes and furniture to daily essentials. With the rise of eCommerce, warehouses have taken on a critical role, serving as storage facilities for products before they are processed for export or distribution. This transformation has given rise to the concept of retail warehouses, which have evolved to become the hub for fulfilling retail orders. This shift has completely transformed the traditional notion of warehouses, which have gone from mere storage facilities to an integral part of the eCommerce ecosystem. Let us understand more about the evolution of warehouses and how they have become an epicenter for fulfilling retail orders.  

What is a Retail Warehouse?

A retail warehouse is like any other warehouse; big with a large area of floor space and normally built on the city’s outskirts. But with a retail warehouse, we can use it not only as a centralised area for storage but also as a distribution center to save resources, money, and time. The retail warehouse allows online orders to be fulfilled within the same space, becoming the central hub for storage, inventory management, packaging, labelling, and delivery. By integrating all these functions, retail warehousing helps organisations maintain the quality and efficiency of their supply chain operations.

Traditionally, warehouses were never considered as an essential part of the retail business. But, with the advent of eCommerce, warehouses have undergone a transformation, emerging as crucial components of the retail industry. The smooth functioning of the retail warehouse is now essential for eCommerce’s existence and survival. Global retail eCommerce sales are predicted to reach about 8.1 trillion dollars by 2026, thus increasing the demand for not just a warehouse but a retail warehouse.

Types of Retail Warehouse – Top Choices

Retail warehouse for the eCommerce industry is not only about warehouse space but also an essential part of the order fulfillment process. Selection of the right warehouse would ensure your eCommerce business can fulfill promised deliverables, thus ensuring profit and increased customer satisfaction. The different types of retail warehouses are:

1. Cooperative warehouse

Cooperative warehouses are storage spaces established and owned by cooperative organisations like farmer’s cooperatives, milk farmer’s cooperatives, fishing cooperatives, etc. Both members and non-members can avail the services of the warehouse. Being a member of the cooperative means services are available at subsidised costs. The sharing of storage and operation costs also helps businesses to save money. 

2. Private warehouse

Private or proprietary warehouses are owned and operated by large retail stores, distributors, wholesalers, corporations, online marketplaces, and manufacturers. Private warehouses are costlier than public warehouses and require large amounts of capital to build and maintain. Although requiring investment initially, a private warehouse is very cost-effective in the long run. 

3. Public warehouse

Public warehouses are affordable, easily accessible mass storage facilities owned and operated by the government or semi-government entities. They are available for any business and retailer to rent. Public warehouses are not well-equipped or technologically advanced as compared to private warehouses. 

4. Smart warehouse

Smart warehouses are where technology is used to the maximum to complete a faster, error-free, and safe order fulfillment process. Advanced technologies like AI are used to complete tasks such as fulfillment processing, storage, and inventory management. Smart warehouses engage automation technologies that include not only software but drones, collaborative robots, autonomous mobile robots (AMRs), and automated guided vehicles (AGVs) to accomplish tasks in the warehouse. 

5. Bonded warehouse

Bonded warehouses are mainly owned and run by government or private agencies. They are great for importers to store products duty-free until they are sold. Private agencies that own bonded warehouses require a government license to run them. Importers must keep bonds (bank guarantee) with the warehouse management for goods stored. This ensures that the importer pays customs duties when goods are sold. They are ideal for eCommerce businesses involved in international trade.

6. Distribution centers

A distribution center is a temporary storage space for items that need to be shifted quickly within the supply chain. Within a span of time, a large inventory is received and distributed to resellers and retailers via distribution centers. For food and perishable items, distribution centers are the best to facilitate quickly moving items like groceries, vegetables, etc. Most distribution centers are near transportation centers to ease efficiency and reduce delivery time. 

Benefits and Challenges of Retail Warehouse

There are various benefits of a retail warehouse, some of which are:

• Increased storage: Most businesses often find a lack of storage space as a main hindrance to fulfilling large orders. With retail warehouses providing storage to store large amounts of inventory and for every type of commodity, the problem is solved to meet the customer demands.  

• Efficient Management: Delivery management can become easier depending on the type of retail warehouse selected. A smart warehouse using technology would help maintain real-time inventory and ensure the fulfillment of orders efficiently. 

• Centralisation: Retail warehouses act as a center point to gather all products, pack them, and brand them for further distribution. A central location enables you to keep track of your inventory. It also ensures that extra stock is ordered in advance to meet your order fulfillment requirements. 

• Enhanced security: The operations team of retail warehouses ensures your goods are safeguarded with high security. They also protect your goods from fire, water hazards, or theft. They have contingency plans in place to reduce the damages that can occur to your stored products. 

Although retail warehouses are a boon for the eCommerce industry, various challenges are also encountered. A few of them are:

• Returns Management: Returns are inevitable, especially in the retail sector. Proper returns management is required to curtail losses and recover some profits from the returned products through resale, refurbishment, or selling some parts of the returned item. Each returned item must be stored until a quality check is done or returned to the manufacturer as an unsold item. Every retail warehouse should be equipped to handle multiple returns or connect each returned item to its initial order to ensure the audit trail is maintained.

• Managing supply chains while maintaining inventory visibility: International trade has increased the complexity of supply chains. This complexity can raise various complications to occur as it involves the transfer of data and information through various systems and networks. Different time zones and different procedures at various places can be challenging. Proper visibility in the various sections of the supply chain is essential to avoid glitches. Using technology to maintain transparency in the procurement and fulfillment areas would help procure real-time information to ensure proper tracking through the entire process. A good collaboration between the various stakeholders in the supply chain would provide a clear picture of items in store and when in transit.  

Improve Your Warehousing Using Fulfillment’s Services

Shiprocket, India’s #1 eCommerce shipping solution, offers end-to-end fulfillment operations. It provides industry-standard operations and same-day/next-day delivery. This is all possible with their fulfillment centers located nationwide, making faster intra-city and intra-zone shipping possible. Shiprocket is a single platform for order, inventory, catalogue, and logistics management. 

Conclusion

India is one of the fastest-growing eCommerce countries based on online sales, with eCommerce sales forecasted to increase by more than 25 per cent. Warehousing has always been an integral part of the eCommerce and retail industry. Retail warehousing has become more important for order fulfillment operations. By understanding your retail warehousing requirements, you can decide what works best for your business. Click here to choose the best fulfillments services for your business. 

Frequently Asked Questions(FAQs)

Warehouses are huge spaces allowing businesses to store, transport, and distribute goods from a centralised location. All businesses cannot have warehouses, and many tend to lease or rent the same from other parties or use third-party partners to manage their fulfillment requirements. Selection of warehousing partners is important as they enable you to track and manage inventory, reduce transportation costs, reduce staffing needs, and increase your flexibility to either increase or decrease stock as per business requirements.

The growth of the eCommerce and retail sector has generated a demand for warehouses in India. By 2027, the warehousing market in India is expected to reach INR 2,872.10 billion. Selecting a warehouse partner is not easy, but with the help of this article, we can guide you on the 7 factors to consider when selecting your warehouse partner.

Top 7 Factors To Consider When Selecting Your Warehouse Partner

To find the best warehouse partner for your business requirements, you can consider the following factors: 

1. Layout and Flow Optimisation

The warehouse layout should be designed to maximise space and streamline operations. A good warehouse layout design should consider workflow efficiency, storage space, floor space, and easy access to products and equipment. Warehouses that have implemented technology like collaborative mobile robots would help to improve productivity and optimise resources. 

A few methods to improve layout and flow optimisation are:

• Reduce travel time by storing the most picked items in locations that are easily accessible
• Sort shipment according to the product or category type
• The quality control area should be set up as close as possible to the packaging area               
• Optimise aisle width
• Implement proper signage and labels to facilitate navigation 
• Standardise processes

Choose a warehouse partner who can provide or implement these methods to improve your warehousing experience with them.

2. Skilled Workers

Warehouse workers are the pillars behind the successful running of a warehouse. A warehouse has different roles and responsibilities, and skilled workers are required to handle these job profiles. Skilled workers require soft and hard skills to work efficiently in the warehouse. Soft skills like communication, teamwork, and discipline are required for daily interaction and functioning with other workers and customers. Hard skills like knowledge of warehouse management, inventory management, delivery management, and safety management would help maintain the warehouse properly. 

Every product is different concerning its storage and packaging requirements. Workers employed for warehouse management should understand the type of product stored and its storage requirements. Warehouses also require skilled workers well-versed in software and automated technologies to handle material or warehouse management systems. 

The best layout or design becomes immaterial if no skilled workers can perform the warehouse’s day-to-day activities. A warehouse partner should also have capable workers within their payroll to provide you with the best service.  

3. Licenses and Permits

Any person starting or carrying on a warehousing business must be registered with Warehousing Development and Regulatory Authority (WDRA) and procure a warehouse licence. If proper licenses and permits are not obtained, one can be imprisoned, fined, or both. So, it is safer to first get all papers in order and checked before partnering with a warehouse partner.

Building new rack systems in the warehouse requires proper permits like building and fire permits from the concerned authorities. Permits differ with respect to location, state, and country. 

4. Location and Infrastructure Network

The location of the warehouse facility makes a great difference in fulfillment timelines and the cost of operations. An easily accessible warehouse near major highways, shipping hubs, and customer base would help reduce last-mile delivery costs by maximising delivery speed and efficiency.

Nothing better than partnering with a warehouse partner who can customise their warehouse as per your requirements without compromising on the quality of service and performance. This would be beneficial to both parties as this can lead to maintaining long-term operations with each other. 

The infrastructure network in the warehouse should be equipped with the correct equipment and technology for efficient distribution. This will help you to get your products quickly and efficiently to the customer. 

5. Material Management Systems

Every material is different and requires proper skillsets and tools to handle the same. The right warehouse partner should have good material handling capabilities best suited for your company’s needs.

Also, the warehouse should be able to handle the volume of your goods and appropriately scale its operations to support the same. Ideally, the warehouse partner should provide backloading and front-loading services, making it easier for you to transport your products in and out of the facility. 

6. Adequate and Flexible Storage Capacity

Storage capacity requirements for a business can vary for various reasons. Suppose your business is dependent on seasons for the sale of products. In that case, your warehouse partner must be able to handle more goods during the peak season and less during the non-peak season. Partnering with a warehouse that can adjust its operations based on your company’s needs is a valuable asset. Flexibility in scaling their operations can ensure that your goods are stored safely and efficiently while avoiding unnecessary costs.

7. Compliance with Industry Norms and Regulations

Warehouse compliance includes safety procedures and adherence to industry compliance regulations. Warehouse safety procedures include material handling and storage for hazardous materials, food, or high-value inventory.

A few general warehouse rules include caution when using lifting equipment, storing materials safely, maintaining fire safety, etc. Proper insurance coverage for the warehouse is also an industry norm that needs to be followed. One must always partner with a warehouse partner who prioritises following safety norms and regulations. 

Shiprocket’s Latest Solution as Warehouse Partner

Shiprocket is India’s no. 1 eCommerce logistics solution provider. It provides a simplified eCommerce fulfillment, warehousing, and logistics solution. Partnering with Shiprocket is easy as it does not require additional warehouse investment, follows a quick onboarding process with minimal paperwork, and can accommodate a surge in order volume. It is possible to deliver your product to any corner of the country as Shiprocket provides 45+ warehouses across India to fulfill your order faster.

Conclusion

Choosing the right warehouse partner can be a game-changer for your business. A dependable partner will be responsible for providing cost-effective transportation routes and efficient inventory management, which can significantly streamline your product distribution network, save valuable time, and reduce costs. Therefore, it’s crucial to carefully evaluate your business needs and collaborate with a warehouse partner that can align with your objectives and help you achieve your business goals.

Frequently Asked Questions(FAQs)

As eCommerce businesses grow, managing inventory can become a challenge. If you have excess inventory, you may be wondering whether to store it or move it to a warehouse facility. Although the terms “warehousing” and “storage” are often used interchangeably, they actually have different meanings that are important to understand in order to leverage the benefits they offer. In this article, we’ll explore the differences between warehouses and storage units so that you can make the most of their advantages.

Understanding Warehousing and Storage: Definition, Types, and Benefits

Let’s begin by defining the two terms that are routinely used in logistics and shipping services. 

Storage 

When businesses or manufacturers decide to hold their goods and materials at a small scale and volume, it is called storage. More often, the term is associated with household storage like furniture, clothing and holiday decorations. Similarly, businesses may hold their inventory in storage for a shorter period in comparison to goods they hold in a warehouse. More importantly, the goods are stored because they are not being used currently and may be used in the future. Storage can be in any temporary location, such as a small room or store room that can hold the goods. There are usually no specially designated spaces for storage.

The different types of storage facilities are – self-storage and mini-storage. Sometimes dynamic semi-automatic and automatic systems of storage facilities are also available.

Warehousing

Warehousing is defined as the process of storing materials and goods in large volumes. These goods could be for domestic consumption or overseas markets. Retailers, distributors or manufacturers commonly use warehousing services to hold their goods until they are needed next. The physical location where large quantities of goods are held is defined as the warehouse. 

The Differences Between Warehousing and Storage

In this section, let us look at the factors which distinguish warehousing from storage facilities –

1. Location and accessibility

Warehouses require larger spaces and are mostly located in remote areas where large land mass is available. They are located near transportation hubs for the quick shipping of goods.

On the other hand, storage facilities are located mostly in residential areas since they need to be easily accessible to customers.

2. Capacity

Warehouses are primarily used by businesses for commercial purposes. Therefore the size of warehouses is very large, and designated spaces and equipment are installed for unloading and loading. The goods stored are generally wholesale items and very large equipment. 

On the other hand, storage units hold very small items such as household appliances or personal items.

3. Security

In warehouses,  monitoring and securing the facility is a very significant activity. The large area is generally open for easy access to trucks. The massive spaces are a challenge to secure. Technology-driven security equipment such as closed circuit television record the activities across the facility, helping in maintaining security across facilities.

On the other hand, storage units are small spaces and may not have complicated security processes. They often remain out of access to common people and are safer. Storage facilities are easier to monitor and can accurately track people accessing the facility.  

4. Cost

Warehouses involve a lot of costs as they are larger facilities and often carry a rental cost or a lease cost. Additionally, the overall maintenance of these large spaces is expensive. Security and additional maintenance are recurring costs. 

On the other hand, storage facilities are much smaller, compact facilities and do not have high overheads such as rental security maintenance and other add-ons.

5. Services

Warehousing provides a range of services like packaging, shipping and transportation. On the other hand, storage facilities do not offer such services.

Thus, the above comparative analysis of warehousing services and storage facilities clearly shows there are some differences in terms of size, capacity, layout and services each of them provides. You can select either facility based on your business’s specific needs.

The different types of warehouses are – bonded, public, private, climate-controlled warehouses or distribution centers. 

Let us take a quick look at the types of warehousing and storage. 

Types of Storage and Warehousing

Choosing the right storage or warehousing facility is crucial for an eCommerce business. Here are the different types of warehouse and storage facilities that are commonly used by retailers, manufacturers and other businesses:

1. Public Warehouses

This type of facility is mostly owned and operated by service providers who handle end-to-end services like – storage and distribution for several clients. These facilities charge on a per-use basis for short-term storage and distribution services.  

2. Private Warehouses

These facilities are owned by companies for their own warehousing uses of storage. These facilities hold goods for long-term storage and distribution.

3. Distribution Centers

These types of facilities are designed for the fast-paced movement of goods. They receive goods from manufacturers, suppliers, and resellers and then store, sort, and distribute them to retailers or end customers. In the process, they offer a variety of value-added services like assembling and labelling to prepare products for shipment.

4. Climate-Controlled Warehouses

These facilities maintain a specific temperature and humidity level to ensure sensitive goods are well protected. These are mostly used in industries that deal with perishable foods, pharmaceuticals and electronic appliances.  

5. Self-Storage Facilities

These storage facilities are typically used by businesses for individual storage. These can be rented facilities that customers use to store their personal belongings. 

As you can see, the diverse range of storage and warehousing options provides eCommerce businesses with many choices to find the most suitable facility for their products and goods.

Benefits of warehousing and storage

The comparative study of warehousing and storage facilities illustrates the conceptual difference between the two facilities. However, there are several benefits to warehousing and storage. These are as follows:

1. Increasing goods security

The primary advantage of using a warehousing facility is that the goods stored are well protected and are unlikely to be stolen or damaged.

2. Better organised

Warehouses and storage facilities help businesses to organise inventory for better management. These practices are more sustainable since there is easy review and evaluation of stock level.

3. Lower cost

Warehousing and storage facilities are important factors in helping companies save money on transportation costs and shipping costs.

4. Enhanced flexibility

Warehousing facilities and storage units offer businesses choices in the manner of storage and access they want for their goods.

Although there are benefits of using warehousing and storage facilities, there are some disadvantages. The limited space, high costs of renting the warehouse, and difficulty to access because of remote location, along with the sudden issues with packaging and transportation, may influence business decisions in choosing the storing facility or warehousing provider.

Conclusion

The above discussion clearly identifies the differences between warehousing and storage facilities. While warehouses offer large spaces and greater security for storing goods, storage facilities are more compact and easy to access. Storage units are small, and shipping is immediate. As an eCommerce business, if you are looking to store extra inventory, it is ideal that you find the best solutions according to the needs of your business. One such solution for storage facilities and warehousing services is offered by Fulfilment service providers. Our wide network of warehouses and storage facilities available across the country provides secure storage and reliable shipping services for eCommerce businesses. Click here to know more.

Frequently Asked Questions(FAQs)

When it comes to eCommerce businesses, delivering orders to customers on time and at a low cost is extremely important. To make this happen, a strong supply chain is needed, and one of its crucial parts is warehouse facilities. These facilities are responsible for managing the inventory, sorting, and preparing products for distribution. In this guide, we’ll explain what warehouse facilities are, what features they should have, what functions they serve, and how warehousing facilities in India can help eCommerce businesses improve their operations.

Warehouse Facilities: Definition

A warehouse facility is a large complex designed to store and distribute goods. It may be owned by third-party logistic providers and tailored to cater to small-scale storage needs or large-scale distribution centers. The primary purpose of a warehouse facility is to provide ample space for businesses to store inventory, pack, label, and ship goods. For growing eCommerce businesses, the leading warehousing facilities in India present a cost-effective solution for managing their inventory. By delegating inventory management to these facilities, businesses can focus on their core operations and remain productive and efficient.

Top 5 Facilities That Should Be in an Ideal Warehouse

Here is a check-list of the top 5 facilities in an ideal warehouse that can ensure efficiency, safety, and cost-effectiveness: 

1. Loading Docks

These are dedicated spaces for trucks to load or unload goods. They are equipped with various tools, such as dock levellers and bridging platforms, that facilitate the smooth transfer of goods between the truck and the dock.

2. Racking Systems

These are needed for vertical storage and optimising inventory holding.

3. Lighting and Climate Control

Having good lighting and climate control is very important for any warehouse facility. Proper lighting helps workers see and work safely, while climate control helps maintain the right temperature and humidity levels to protect the goods stored inside from damage. 

4. Security

It plays a vital role in safeguarding both the goods and workers inside the premises. To ensure maximum protection, a strong security system should be put in place. This system should include video surveillance, alarms, and advanced security features such as access control systems.

5. Amenities

The warehouse should include all modern equipment to ease inventory movement. This includes optimisation of the layout design for efficiency and communication with the latest tools and technologies.

Functions of Warehouse Facilities

Warehouse facilities are more than inventory storage spaces. They offer a range of other services, such as: 

Inventory Control

It is an essential function for any warehouse facility. It ensures accurate locating and tracking of stored goods, as well as maintaining the right quantity of inventory. Proper labelling also enables quick retrieval, and analysing prices and product demand helps manage stock efficiently.

Transportation

Some warehouse facilities may offer to move goods for eCommerce businesses that need transportation services. This avoids outsourcing distribution, and businesses can easily track the movement of goods.

Transloading

Transloading is another critical feature that allows the efficient movement of goods between multiple transportation modes. Warehouse facilities should be equipped to meet the specific needs of the client, from the warehouse to local distribution centers.

Risk aversion

Safe and secure warehouse facilities prevent the risk of storing goods in basements and spare rooms, as usually done by businesses. Technology-backed tools in warehouse facilities ensure easy tracking of warehouse storage, so businesses can have peace of mind knowing their inventory is safe. Additionally, insurance coverage against burglary and theft provides an extra layer of protection.

Warehouse contracting

For businesses that want alternative solutions to self-operated warehouse facilities, a contract warehouse helps meet distribution needs and remain competitive. Contract warehouses offer flexible storage options, handling of goods, transportation, and distribution services, tailored to the specific needs of their clients.

Top 4 Benefits of Efficient Warehouse Facilities

The benefits of using an efficient warehouse are

1. Cost-savings: An efficient warehouse facility helps businesses save money by optimising storage spaces, minimising overstocking, and reducing inventory. Streamlined processes also lower labour costs and the time it takes to move merchandise in and out of the warehouse.
2. Customer service enhancement: Warehouse facilities help businesses stay ahead of delivery timelines. They also ensure optimised supply chain operations and lower the risk of overstock and delays. This leads to improved customer satisfaction and helps sustain long-term customer relationships.
   
3. Increased productivity: The advantage of an efficient warehouse is that processes are streamlined to lower downtime and increase productivity. By evaluating workflows and reducing the time taken to perform tasks, businesses can handle more orders and improve overall productivity.
   
4. Competitive advantage: An efficient warehouse gives businesses a competitive edge by enabling them to respond quickly to market situations and meet customer demands as they arise. By optimising supply chain operations and reducing costs, businesses can stay competitive in highly competitive marketplaces.

Industry Solutions for Efficient Warehouse Facilities

Service providers like Shiprocket offer partnership programs that eCommerce businesses leverage to optimise their logistics and supply chain. 

Efficient warehouse facilities are critical for eCommerce businesses to succeed in a competitive market. By optimising inventory management, transportation, and order fulfillment processes, companies can save costs, enhance customer service, increase productivity, and gain a competitive advantage. The advantages of Shiprocket’s warehouse facilities include:

1. Strategic Locations: Shiprocket’s warehouses are strategically located near industrial areas, close to manufacturers’ and suppliers’ facilities. It continues to add more to its current 45+ warehouses across India. 
2. Ship Smarter: Shiprocket’s proprietary inventory management platform gives businesses a competitive edge since overheads are minimised. Their efficiently structured facilities are well-managed for quick in-and-out of transport vehicles with the necessary equipment for safe and damage-free loading and unloading. 
3. Customised services: Shiprocket provides customised services for inventory-based businesses. Companies have the flexibility to scale their inventories to match customer demand. 
4. Fast shipping tags: Shiprocket offers end-to-end support to eCommerce businesses, including transportation, warehousing, and order fulfillment. Shiprocket also offers businesses the facility to provide badges or tags that indicate fast shipping. For example, Amazon’s Prime shipping tag reassures customers that they will receive orders on time. Shiprocket enables businesses to offer customers fast-shipping tags at checkout, leading to higher customer conversion rates.

Conclusion

Warehouse facilities are a crucial link in the eCommerce supply chain. An efficient warehouse facility is essential to ensuring the timely delivery of goods at the lowest possible cost. A suitable warehouse facility can optimise inventory management, improve customer satisfaction, and increase productivity. Partnering with service providers like Shiprocket can offer businesses a comprehensive solution to their logistics and supply chain needs, enabling them to focus on growth and profitability.

Contact our experts now to learn more about Shiprocket’s warehouse facilities for eCommerce.

Frequently Asked Questions(FAQs)