Warehousing
Warehousing is the process of temporarily storing physical bulk inventory for sale to individual consumers or distribution to other locations.
Warehouses are designed to store and safeguard products in a structured manner, allowing businesses to easily monitor where items are located, when they were received, how long they’ve been stored, and how much inventory is available.
At the beginning, new or small businesses often don’t require a warehouse—they can manage inventory from a home, office, garage, or similarly small area. However, as the business grows and space becomes limited, they’ll need to either lease warehouse space or partner with a third-party logistics provider that offers storage solutions.
In ecommerce, products remain in warehouse storage until a customer places an online order, prompting the warehouse to ship the item directly to the buyer. In contrast, traditional retail businesses may use warehouses to hold inventory temporarily before distributing it to physical store locations.