Warehouses are the most important part of a wholesale and dropship operation. This is because warehouses are where products are stored, packaged, sorted and shipped to locations across the world. This is especially important for wholesalers because they operate in large quantities and need an organised warehouse stocking system to service their retail customers.
Warehouse wholesalers that operate in the e-commerce sphere rely on internet safe packaging and specifically made products to target their niche. This gives them an advantage over wholesalers who mostly sell offline (brick and mortar sales) because their warehouses can cater to online customers all over the world, often with free shipping to the mainland.
Warehouse wholesalers cater to a wide variety of products and customers. This can be big ticket items such as furniture products including chesterfields, armoires, side tables and chest of drawers. Even products such as small accessories, homeware and giftware that don’t take much warehouse space and can be packaged, handled and shipped with ease. Indeed, the small value of the latter means that in case of refunds or breakages in the warehouse, it won’t cause a large loss of profits for the wholesalers themselves.
Further, warehouse wholesalers can play the role of stockists and even dropshippers in the supply chain. This flexibility is important to diversify their offerings and thus ensure that they fulfil several niches to expand their portfolio. Warehouses can be widely useful in both short term and long term stocks. They can also help retailers acquire stocks that they would not be able to store on their own. This is a key role in the supply chain that ensures smooth movement of products from the manufacturers to the retailers to the consumers in the market. Having access to this warehouse also gives them the chance to lease out the space to other wholesalers and small retailers who wish to have storage space for their own products. The monthly income earned here can be reinvested in product designing and marketing, or even buying more raw materials and storage spaces in case of expansion.