How Much Warehouse Storage Do You Need?

Warehouse storage needs depends on what you hope to achieve tomorrow as well as what is happening today. How much warehouse storage space a company, especially an ecommerce company, needs is never a simple question to know the answer to. It is not hard to get excited at the first sign of sales rising and want more space. Many businesses owners know that the day-to-day sales fluctuates and that those fluctuations are perfectly normal. In order to grow, truly grow, it takes planning and patience.

Making sure you analyze your historic sales data is incredibly important. If you are looking at just your shelves that are empty or watching your 3PL stuffing your safety stock wherever they can in their warehouse, paying attention to your historic sales is key to successfully back stocking and only using the space you really need.

When calculating how much space you will need for the eCommerce business you will need to consider a few things. One is to think to your busiest season. How big did your inventory need to be and can your warehouse hold that amount of inventory. Now with that you need to consider the impacts of supply chain backlogs and when you have too much extra stock. Also, understanding why related elements, like returns, increase storage needs.

Understanding the amount of space you will need will help you choose the better option for you. If you feel that getting your own warehouse, employing warehouse staff, and running it all yourself is what’s best, go for it. Let’s say you don’t need that much space and you don’t want to employ your own warehouse team, using a 3PL (third party logistics company) might be the better bet.

Do not hesitate to contact us here at Launch Fulfillment. We would love to answer any questions you may have and help you with your fulfillment. We look forward to hearing from you.