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Ecommerce warehousing: Best practices for setting up and running ecommerce fulfillment operations

Nov 11, 2024 - Doug Shaffer
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Ecommerce warehousing best practices | Cart.com
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The right warehousing strategy can make all the difference in ecommerce fulfillment. With skyrocketing online sales and high customer expectations, managing an efficient warehouse isn’t just beneficial – it’s essential. 

A well-designed warehouse can lower costs and keep customers happy by providing fast shipping and accurate order fulfillment. As more brands embrace ecommerce, having a streamlined, scalable warehousing setup can become a key competitive advantage. When fulfillment operations run smoothly, they create a positive customer experience that builds trust and loyalty. However, inefficiencies can lead to delays, inaccuracies and higher costs that can harm brand reputation. 

The following sections explore best practices to help ecommerce brands set up and maintain high-functioning fulfillment operations. 

Choose the perfect warehouse location and layout

The first step in building a high-performing warehouse is selecting a strategic location and planning a layout that maximizes efficiency.

Location impacts everything from delivery times to shipping costs, so choosing the right place is critical. A warehouse close to your primary customer base or logistics hubs can speed up shipping and lower costs. Additionally, proximity to highways or airports can streamline your logistics network, making it easier to reach customers in neighboring regions.

Once you have the right location, an optimized layout is essential for maintaining smooth operations. Below are several tips to enhance your current layout:

  • Organize your warehouse so frequently picked items are closer to packing areas.
  • Invest in shelving storage solutions that use vertical space efficiently.
  • Keep aisles wide enough to prevent bottlenecks.

A well-planned layout can improve productivity, safety and inventory accuracy, leading to faster fulfillment times and happier customers.

Put technology to work in your warehouse

Investing in the right tech stack could save you hundreds of hours of manual labor and improve accuracy. For example, a warehouse management system (WMS) is crucial for ecommerce brands managing extensive inventories across channels and offers the following benefits:

  • Real-time inventory tracking
  • Data integration across departments
  • Improved accuracy for order processing

The insights gained from WMS analytics can also help streamline workflows, reduce waste and improve operational decision-making.

Ultimately, automation can take your warehouse efficiency to the next level. Robotic picking systems, for instance, can cut down on time spent retrieving items from shelves. Conveyor belts and automated storage systems keep goods moving seamlessly, while barcode scanning improves inventory accuracy and speeds up receiving and packing. 

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Master inventory management to keep stock flowing smoothly

Effective inventory management keeps operations running smoothly, minimizes stockouts and ensures products are always available when customers need them. 

The best place for businesses to start is by establishing clear procedures for receiving and staging incoming goods. Each item should be labeled, counted and verified to prevent discrepancies. A dedicated staging area for new inventory also ensures that items are stored efficiently and can be accessed quickly.

Picking and packing are two of the most time-consuming tasks in the warehouse, but there are ways to make them more efficient. Techniques like zone picking (where pickers are assigned specific zones) and wave picking (where similar orders are grouped for faster picking) can help. Additionally, a standardized packing process reduces the chances of damage during shipping and keeps packaging costs low. Regular cycle counting and stock audits also help ensure inventory accuracy and maintain smooth order fulfillment.

Ensure speedy and accurate order fulfillment

Speed and accuracy are two key factors that significantly impact customer experience. Customers are more likely to trust a brand and return for future purchases when the company fills orders quickly and accurately.

To ensure expectations are met, your team should establish a structured order workflow to keep fulfillment efficient and organized, moving from order receipt to packing and shipping. This streamlined workflow reduces handling time and ensures each step in the process is followed, minimizing errors and speeding up the overall process.

Quality control is another important aspect of accurate fulfillment. A few minutes spent checking orders before shipping can reduce costly returns and increase customer satisfaction. Organizations looking to improve their QA efforts should consider implementing barcode scanning to verify order accuracy and spot-checking packed boxes before they leave the warehouse.

Working with reliable shipping partners is equally important, and organizations should compare rates and delivery times to find carriers that align with their fulfillment goals. Cart.com's transportation management system (TMS) makes this process easy by allowing you to compare carriers and optimize costs on every order.

Safety, security and compliance: Building a responsible warehouse

Maintaining a safe and secure warehouse helps:

  • Protect employees
  • Keep stock safe
  • Maintain operational compliance

Warehouse work can be physically demanding, so implementing safety protocols is essential for protecting your team and maintaining productivity. Organizations should require employees to wear personal protective equipment (PPE) when needed and keep aisles and walkways free from obstructions to reduce injury risks.

Security protocols are equally important for protecting your warehouse from theft or unauthorized access. Installing surveillance cameras, setting up access controls and conducting regular security audits are effective ways to keep your warehouse secure. 

Additionally, ecommerce brands need to stay on top of regulatory compliance with expanding health and safety guidelines. A compliant and secure warehouse protects the brand and builds trust with customers.

Build a reliable, flexible workforce

A skilled, motivated workforce makes a big difference in warehouse productivity. Finding the right team members starts with hiring individuals who work well in fast-paced environments and are committed to quality. However, if you're looking to build a reliable and efficient workforce, it's important to invest in thorough training programs that teach:

  • Warehouse best practices,
  • Technology usage
  • Safety protocols.

Well-trained employees are likelier to work efficiently, handle tasks correctly and maintain a positive attitude under pressure.

Ecommerce businesses also experience seasonal demand spikes, so it's wise to have a plan for scaling the workforce during busy times. Seasonal staff and flexible shift arrangements can help your warehouse meet increased demand without overloading regular employees. 

Analyze and improve with data-driven decisions 

Using data to monitor and enhance your operations can be key to unlocking organizational efficiency. Companies should begin by tracking key metrics (KPIs) like:

  • Order accuracy
  • On-time shipping rates
  • Inventory turnover
  • Warehouse capacity utilization

By analyzing these metrics, your team can uncover insights into which processes are working and which need improvement, guiding your decision-making and helping you fine-tune operations. Continuous improvement programs can also help you optimize your fulfillment center. Methodologies like Lean and Kaizen encourage teams to make small, consistent improvements that add up to significant operational gains.

Improve ecommerce warehousing fulfillment operations with Cart.com

Running an efficient, well-managed warehouse isn’t just about logistics; it’s about building a strong foundation for customer satisfaction. A streamlined, well-organized warehouse leads to faster shipping, fewer errors and better customer experience.

For brands looking to take their ecommerce warehousing to the next level, Cart.com offers integrated solutions and 3PL services to streamline every aspect of your operations, from WMS to data analytics and beyond. Contact our team today to learn how we can help your company enhance ecommerce warehousing and fulfillment operations.