Warehousing

What is warehousing?

Warehousing is a process of storing goods before they are sold:

• in traditional retail, products are stored in a warehouse before they are shipped to a brick-and-mortar store
• in e-commerce, physical products are stored until an order is placed online.

Small business owners might be warehousing products at home. For example, in a garage, spare room, or basement. 

When the inventory outgrows the place, a business owner will have to find a warehouse or rent storage space. Another way to store inventory is to outsource fulfillment to a third-party company.

If an entrepreneur starts a dropshipping business, they don’t need to store products. A supplier takes care of storage and shipping items to customers, while a seller promotes products and manages an online store.