This e-commerce storage guide provides a comprehensive read on all topics related to storage of products in your supply chain. Well established Amazon Sellers optimize their supply chain. That means avoiding storage charges where possible. Not leaving money on the table. Making sure goods do not languish in one spot for too long. Time spent in storage, is money out of your pocket. This guide explores three stages of storage in your supply chain – Freight forwarding Storage, 3PL Storage, and FBA Storage.
E-Commerce Storage – Stage One
Freight Forwarding Storage
Where is Cargo Stored in Your Supply Chain?
This part of FbaZoom’s storage guide reveals the areas where freight forwarders charge storage fees. There a several pockets in the supply chain where your products can avoid storage-related fees.
This part of the guide examines the movement of products from Origin Port to Destination Port. Importantly, it reveals how products are stowed away along the way. Look at the different touch points below for specifics:
E-Commerce Storage – Stage Two
3PL Storage
What are 3PL Storage Services?
The article reviews third-party logistics (3PL) storage services. It discusses various types of 3PL storage services, including bin storage, pallet storage, reefer storage, and cross-docking storage. Bin storage facilitates efficient online order fulfillment through a streamlined picking and packing process. Pallet storage in a 3PL environment optimizes space utilization and offers scalability. Whats more, pallet storage leverages warehouse management systems for inventory tracking. Next, reefer storage ensures the preservation of perishable goods by maintaining specific temperature ranges throughout the supply chain. Additionally, cross-docking storage acts as a holding solution for pallets who were due for a transload between trucks but are pending the arrival of one of the trucking drivers.
Warehouse Storage Systems – A Deep Dive on 3PL Storage Infrastructure
Warehouse Storage Systems play a critical party in product storage. For sellers, the importance knowing a 3PL’s storage system can help them determine what value that warehouse partner offers. For example, an efficient pallet rack system not only maximizes storage space but also ensures safety and regulatory compliance, which are essential for smooth operations. As a seller, you don’t want to get into bed with a 3PL that flirts with danger.
There are 5 general types of warehouse storage systems:
- Pallet Racks
- Static Shelves
- Multi-Tier Racks
- Mobile Shelving
- Mezzanine Flooring
Each caters to different operational needs and client specifications. Such systems are vital for enhancing operational efficiency, minimizing costs. This is important for ecommerce sellers to understand – so they know where value in storage pricing can be found. Making the selection of the right storage solution a key factor for successful sellers.
Short Term 3PL Storage
Short Term 3PL storage understands that supplychains can be sloppy and frought with delays. When shipments get delayed – they need temporary warehouse storage. From LTL shipping delays, to Amazon listing suspensions, and or incorrect customs paperwork – all can result in the need for short-term 3PL storage. This type of storage serves as an interim solution to hold products from a single day up to 90 days, offering flexibility in managing inventory during unforeseen hold-ups.
Cost variability of short-term storage should not be high. Find a 3PL provider that offers straightforward pricing without long-term commitments. Important varialbles to also consider for storage needs are warehouse infrastructure, turnaround time, and access to account managers. Focus on flexibility and rapid response to your inventory’s storage needs when considering short term 3PL storage solutions.
Long Term 3PL Storage
As businesses navigate the complexities of post-COVID-19 supply chain disruptions, many have transitioned from Just In Time (JIT) supply methods to embracing Long Term Warehouse Storage, or Long Term 3PL Storage. This approach involves storing products for more than 90 days at third-party logistics facilities, providing a strategic buffer against supply chain volatility and accommodating seasonal inventory demands. This method, while more costly than short-term solutions, offers flexibility and risk mitigation, ensuring products are available when needed without the pitfalls of overstocking or stock outs. It’s a critical strategy in today’s unpredictable market, requiring careful planning and negotiation to optimize costs and benefits.
E-Commerce Storage – Stage Three
FBA Storage
The Complete Guide to FBA Storage
Amazon’s fulfillment centers offer the final destination for supply chain storage. In fact, they actively charge for storage on all FBA inventory. Often, they charge the highest rates in the industry. So it’s worth noting, how to decrease these charges. Don’t worry, we cover this.
Amazon charges storage fees through Seller Central. However, Amazon values all products differently when charging storage. For example, dangerous goods receive a higher storage rate. Similarly, products stored for more than 365 days incur higher ‘long term’ storage rates. Alternatively, oversized products take more cubic space. Therefore, they incur higher storage fees too. Lastly, Amazon adjusts its storage rates based on seasonality. This guide examines the exact rates inside.
In sum, this part of the e-commerce storage guide examines Amazon’s storage fees, FBA inventory limits, and everything else related to storing products at Amazon. Here are the touchpoints that this FBA storage guide covers: