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Start a Warehousing Business? Lessons from Amazon

Think about all the essentials needed in a house. Since everyone’s stuck at home with the virus still a threat, there’s a huge spike in the demand for these goods. A look at how toilet papers are running out in stores should tell us how much people are in desperate need to store and put ample stock at home. Call it panic buying spurred by COVID-19. But truly, a deeper look will tell us it could be a business opportunity for anyone who wants to make serious money.

One of the biggest opportunities lies in warehousing. According to data, warehousing businesses are getting an uptick in their sales.

But before you dive in, taking a look at how the most prolific product warehousing champion is doing should bid you well. We’re talking about Amazon, the company that experienced a historic surge in online orders unmatched by any other enterprise. The Jeff Bezos-led online giant certainly did well; here are things it focused on to get its numbers a timely boost.

COVID-19 Pandemic: Too Much Demand, Too Soon

Even the mighty Amazon, hailed the king of e-ccommerce, was caught flat-footed when the virus hit town. As efficient as its processes were, the volume of orders that multiplied when stay-in-place orders were simply overwhelming. It was a classic case of too much too soon.

Amazon became the default retailer as soon as the pandemic started. When stores all over the nation ran out of supplies, the online giant became the go-to website for ordering essentials, from face masks to hand sanitizers. At first,  groceries and household items were the bulk of the orders. But as the pandemic lingered people set their sites in hunkering down. Fitness gears and official supplies started peaking as people adjusted to a prolonged stay indoors.

But the unexpected rise of demand exacted a steep price for Amazon. For one, meeting its promise of the two-day delivery window has become a huge challenge. Inventory issues sprouted. And pretty soon, the online retailer saw its seamless operation spanning a network of warehouses and air/land delivery transportation buckling under pressure.

How Amazon Adjusted Warehousing in COVID-19 Times

The way Amazon carried itself under extreme pressure made it a success story in times of the pandemic. It also proved to be a key turning point for its leader, Jeff Bezos, to stand out in the crowd of billionaires.

The first thing Amazon did was adjust its warehousing priorities. Its executives put the essentials to be stocked in its warehouses as main priority. Paper towels and hand sanitizers were to be prioritized for one, along with medicines. To that end, it then informed its third-party sellers these items should take precedence over other items.

Of course, you’ll have to ensure your warehouse is functions efficiently. For one, look into a quality electric pallet jack for sale. Using the right warehousing equipment to move goods from one place to another is crucial to operations.

But right from the onset, you’ll have to set your priorities straight if you want your warehouse to earn well. Know which set of products would be best to get faster ROI. As Amazon demonstrates, the essentials can give you greater demand and faster turnaround time.

man operating forklift in warehouse

Secondly, Amazon is now looking after its workers. Initially, the e-commerce giant drew flak for its treatment of warehouse employees. Many were saying they weren’t given adequate care as the shipping operations operated non-stop even at the height of the COVID-19 pandemic. To date, Amazon details it has implemented as many as 150 process adjustments to prevent virus transmission. We’re talking about mask requirements to enhanced cleaning. Moreover, testing for the virus for warehouse workers has also been increased.

As orders had to be met at a dizzying pace, warehouse workers had to work double-time. And though a handful of workers succumbed to the virus, thousands more Amazon workers are enjoying their stable job all over the country. They’re definitely in a good place compared to millions who are struggling to put food on the table.

As for Jeff Bezos, the Princeton University-educated multi-billionaire saw his fortunes tripled during the pandemic. From $73.2 billion when the pandemic, his value grew to a whopping $186 billion today. He even reached $200 billion in August this year making him the first person ever to reach the mark.

Warehousing could prove to be a goldmine for you, too. Do things right, and you could see your fortune rise.

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