When you run your own warehouse you are restricted to the four walls of the warehouse you
are in. Most places you will tie you into long leases to get best rates and terms. When you
outgrow your warehouse it often does not happen at the same time as the end of the lease.
Expensive lease breaks are often a cost ecommerce businesses incur if they have their own
Moving warehouses in response to growth results in major disruption in your business.
There are usually downtimes when orders are not getting shipped. Inventory can get mixed
up resulting in further delays in getting orders out. All this can damage your customer
experience and eventually your brand.
Managing a bigger warehouse team means more of your time and more HR and salary
Unless you have run warehouses in the past you will find one of the key challenges is to find
the right warehouse management system for your business. This is often very time
consuming process and can become very expensive.