Warehouse: A Luxury for Drop Ship Businesses

  One of the benefits of a wholesale drop ship business is that we do rarely need a warehouse to store the goods. The goods are usually handed from the seller to the purchaser, sometimes without you even literally seeing the goods. Due to that usually people who do the wholesale drop ship business rarely need warehouses. 

Why Need Warehouses?

  The owner of the wholesale drop ship e-business usually needs a warehouse if they are trying to expand the business in other territories or other fields. Usually when going from buying and selling bulks to buying bulks and selling retail there is a need for a warehouse.

What Kind of Warehouse?

  We usually need warehouses to store the goods, so it all depends on how much space you need to store. There are many factors you should consider before making anything your warehouse. Some of the few factors which contribute to the result of what kind of warehouse to buy are:

How big is the inventory of goods which you need to store?

How much is the quantity of the goods you need to store?

Are the goods seasonal or are in a regular flow? 

If seasonal how much space you need then and all round the year?

Many other factors like size and conditions of storage are also to be considered.

 Here are some of the warehouse options you can start your storage with, like your house, garage etc

Your Home the Warehouse for Starters

  It is a good place to start as a warehouse. But there are a few things for the owner to consider before going thru this step.

  The owner should first of all look into the sales tax laws and if not satisfied with the knowledge they have, they should seek advice of a professional. The other thing to be considered is that does the insurance cover everything which is stored? If you are unsure about it you should call your home insurance agent and ask him if the policy cover’s it or not.

Personal Storage Units for Rent

  Here is another kind of storage unit. The problem is that they may charge more for weather control, so here are a few tips to get you going

Buy 2 spaces, 1 big for the normal stuff and 1 for things you need to keep under certain conditions.

Check for CCTV cameras and check the security and theft history for the place.

Check on the access hours and details like how many men are allowed etc

Renting Commercial Warehouses

  This is the last and the biggest stop for warehousing the wholesale goods. It is costly but if you really need space big enough to unload a lot of cargo and store it then it is perfect for you. There are although some cons to it.

  The rent is high and is without manual labor and fork-lifts and utilities. If you can pay then and still have a profit it’s good, if not your business is going to dry out. Insurance and security measures are completely up to you. Another decline in the monthly profit.

  Any person in this particular field should start small, and they might never need a space as big as this. There are many ways for warehousing your goods but if the inventory is not kept accurately any kind of warehouse can be a headache for a drop ship retail business.

  There are different kinds of options for a bulk to bulk wholesale drop ship business to set their warehouse. It all depends on the size and quantity of the goods. The owner should consider the smallest possible warehouse to start the retail business and think for bigger spaces when the profit margin can cover it with ease. The wholesale to retail drop ship business ultimately needs a well monitored and maintained warehouse to be successful.