Why are retailers switching from owning a warehouse to fulfillment?
In traditional and online commerce there are many challenges one of the biggest ones, especially for mattress retailers, is choosing a logistics model that works efficiently for them. Typically, start-up retailers use their office, a rental space, or even their home as storage. This is manageable when dealing with small items. When it comes to mattresses, however, the situation is different. Sleep products like mattresses are bulky and require special storage to preserve their properties. Retailers with larger businesses often suffer from a shortage of warehouse space due to growing order volumes.
So, if you’re wondering whether it’s time to change your product storage plan or not, you might find the answer in our article.
Switching from your own warehouse to a fulfillment storage brings many business advantages. The most important among them are reduced costs and unlimited opportunities for growing your business.
Flexible scaling
The goals and needs of sleep-product retailers change dynamically. For example, during the holidays like Christmas or for example Black Friday sales, your sales may hit an upwards spike. Given the raise in customers and sales you will need space where you can store more products.
Fulfillment centers are perfect for these periods because they allow easy capacity management. When your sales surge, you can increase the space you use; respectively, when the season is slower, you can reduce it. When you own a personal warehouse, such adjustments are almost impossible. Before starting to work with ILVIDIHA.BG, many of our partners shared that they had faced difficulties like a shortage of space or on the other hand paying unnecessary costs for unused areas.
Efficient cost management.
One of the biggest advantages of fulfillment warehouses is that you pay only for the space your business needs and occupies. On the other hand, building your own warehouse is an expensive investment that can be spent on other things that help your growth. The third option - paying rent - for a warehouse when you have no orders is a waste of resources that can be invested in other aspects like marketing. With fulfillment services, your storage costs are closely tied to your sales levels so you don’t pay for more than what you need.
Optimizing processes with full automation
When you have your own warehouse, you organize and optimize the logistics processes yourself which will give you full control over your business and a sense of security, but in reality this requires a lot of time, resources, and well-trained staff. On the other hand, fulfillment centers, such as ILVIDIHA’s, work with many clients and have set-in automated solutions for processing incoming orders, storage, packaging and shipping of items, and stock level tracking.
ILVIDIHA is the first B2B portal specializing in providing fulfillment services for mattresses and sleep products.
If you want to learn more about how the fulfillment service works you can do so here. In the long time we have been in the mattress business, we have experienced partnering both with start-up companies with smaller turnovers and with leading retailers in the country. Our team of professionals takes care of everything, while our partners save the time and resources to focus on business development and marketing.
If you too want to take advantage of the convenience of our fulfillment warehouses, contact us!
