The Consequences of Home Based Product Storage
Home-based ecommerce storage can lead to the absence of an efficient inventory management system. Indeed, Home-based product storage systems offer significant operational challenges. Here are the pitfalls of inadequate storage solutions.
Home-Based Ecommerce Storage – A Mess Based Storage Model.
If you have storage spread around your apartment or garage – you’re officially ‘winging’ it as a seller. And that’s alright as you get started. However, a dedicated ecommerce warehouse management system is crucial for accurately tracking the storage locations of each product variant listed on your website. Without such a system, it becomes increasingly easy to misplace inventory, a problem that exacerbates as your business and its product range expand.
Home-based Ecommerce Storage can result in a lack of meticulous inventory tracking. In turn, this can result in the wrong items being shipped to customers. Such mistakes not only deter first-time buyers from returning but also risk alienating your loyal customer base, ultimately affecting your business’s reputation and customer satisfaction.
The implementation of a robust warehouse management system is integral to enhancing customer experience and, by extension, positively influencing your bottom line.
Inadequate Space with Home-Based Ecommerce Storage
Small business owners often encounter the limitation of physical storage space, with home-base product storage. Roger Aspen, the owner and CEO of Black View, experienced this firsthand as his sunglasses brand began to outgrow his garage’s capacity:
“Our garage was filled to the brim; we couldn’t squeeze in another box. While leasing a warehouse was an option, the seasonal demand for our products meant we’d need to significantly scale our fulfillment operations annually. Opting for a third-party logistics (3PL) partner was the logical next step.” – Roger Aspen
Inventory Imbalances Due to Messy Home-Based Ecommerce Storage
Effective ecommerce warehouse management is key to maintaining optimal inventory levels. Insufficient stock leads to missed sales opportunities due to stock-outs, while excess inventory risks obsolescence and financial losses on unsellable stock. Moreover, holding too much inventory can inflate storage costs, diverting valuable resources from other areas of your business.
Strategically managing inventory levels enables you to reallocate resources efficiently, avoiding the pitfalls of both under and overstocking.