Warehouse space is often one of the biggest expenses for any business. Whether you’re a startup or an established company, you need to know that your warehouse has enough room to grow with you. But how much space do you need? In this article, we will discuss things to consider when planning your warehouse needs. To discuss your specific warehouse storage needs, request a custom free estimate here.
The Typical Warehouse Size in the US
The average warehouse size in the US is about 120,000 sq ft. Even with all that space, warehouse space is increasingly harder to find for businesses and companies to store their items. Drop shipping, fulfillment centers, and supply constraints have packed warehouse storage facilities with storage over the past several years. The good news is that good warehouse storage companies have a network of storage solutions and should be able to help with your needs.
5 Things to consider when figuring out warehouse space needs
Warehouse space should be able to grow with your business
When deciding on warehouse space for your business, it’s important to think about the long-term. You need to be able to grow with your business, and also have room for expansion if demand increases. You don’t want to be stuck in a space that is too small for what you need but too large for what you’ve currently got.
This is especially true when it comes to seasonal demand. If you sell Halloween costumes, for example, you know that in August, September, and October you will be slammed, but after that, you may not need as much storage. This means that even though having more space would be nice right now, what works best might actually be having less so that there’s room enough only when things pick back up again next year (and then maybe even more after that).
Type of customers and inventory needs?
If you have just a few SKUs, then you may start with a smaller space and grow as your business grows. The more SKUs you have, the more space you will need. If your business has a high turnover of SKUs (i.e., if customers order frequently), then it might require more space to store them all at once.
The type of inventory also plays into how much space you need for your warehouse storage. Selling water bottles is different from selling washer machines. Therefore, it’s important to work with a reputable warehouse facility that can help plan and grow with your business as your business evolves.
Where are your customers located?
You will need to consider the distance from the warehouse to the customer and the accessibility of the warehouse, as well as the importance of being close to customers. Selecting a warehouse space in Boston for example may be good if you want an east coast fulfillment center. This may not be a good idea if you want a west coast fulfillment center.
Do you need fulfillment and order processing?
You probably have a pretty good idea of what fulfillment is, but you may not know what order processing entails. Though related processes, they’re distinct enough that it’s important to discuss them separately.
Order processing involves receiving an order from a customer and verifying it before it can be shipped out. You’ll need space in your warehouse storage requirements, because it involves going through inventory, selecting items, packaging, and shipping.
Fulfillment refers to the actual act of receiving items from suppliers or manufacturers, storing them safely until they’re ready to be shipped off (or reused), then packing orders and shipping them out quickly and efficiently. Warehouse space dedicated solely toward fulfilling orders should include space for larger items to move in and out of inventory easily.
Do you accept returned products?
You should also consider how returns will affect your warehouse space. If your products are known for being returned repeatedly, it may be worthwhile to invest in extra storage space so that you can accommodate those returns.
If the product is very popular and sells well, you’ll want to make sure that you have enough inventory on hand so that customers don’t have to wait for their orders. It’s also important that any returned products go back into stock quickly so they can be resold by other merchants or donated to charity if possible.
Expand fulfillment in New England with Marks Moving & Storage
With warehouses throughout the New England area, Marks Moving & Storage provides a variety of warehouse solutions to meet your needs. We have over 100,000 square feet of warehouse space available for rent in our network of locations. Our expertise and experience can help you choose the right warehouse space for your business, as well as all logistical aspects related to moving or storing inventory within one of our storage facilities.
Request a custom estimate for your specific warehouse needs here, or give us a call at (508) 983-6000. We look forward to speaking with you and helping you with your storage and fulfillment needs.