Inventory Storage: What to Keep in Mind
Many people typically rent storage units when they downsize their homes, when between permanent residences, and to reduce overall living costs. Another great reason to rent a unit is inventory storage for products your business has in stock awaiting purchase. Whether you run a traditional small business, sell items on Amazon or Etsy, or are a part of the gig economy, how you store your inventory affects its value and your company's profits.
From the storage pros at Stop & Stor, here are some inventory storage tips to consider for your small business.
Benefits of Small Business Inventory Storage
Choosing an off-site storage unit instead of stashing inventory in your own personal home or garage offers many benefits. An inventory storage unit can save you valuable living space, reduce home rental costs, and prevent items from becoming stolen, lost, or damaged. You might choose self-storage if you are just starting your business, if you intend to keep your business small, or if you are testing out a new entrepreneurial idea.
Large businesses and sizable eCommerce companies must often pay for warehouse storage to handle large amounts of inventory items and utilize warehouse staff to keep everything organized. However, small businesses can often save money and maintain greater control over their inventories by renting self-storage units. This cost-effective strategy is easily accessible and doesn't rely upon drop-shipping from a third-party supplier. With your own storage unit, you can improve your margins, increase the supply speed, and ensure product quality meets your standards.
The Best Inventory Storage Methods
One common inventory storage method is "last-in, first-out," a system that focuses upon initially selling the inventory items you brought in last. Another method is "first-in, first-out," which involves selling the inventory you brought in first before items are brought in later.
Both methods require you to keep a storage unit highly organized so that the items you need are within reach, often using flow-through racks, drive-in racks, and push-back racks. When evaluating different inventory storage methods, you'll want to consider numerous costs, including the expense of the space, staffing, utilities, insurance, and the inventory itself.
How to Organize Inventory for Small Businesses
How you organize your inventory depends on the types of products you sell. An initial step is to invest in inventory storage equipment, such as shelves, racks, bins, a cart, plastic totes, packaging materials, and a shipping scale. To organize the items inside your unit, consider your company's sales volume. If the majority of your sales come from just a few of your products, ensure that those high-selling products are most accessible and closest to the packing area of your unit. Behind these items, you can place the next most popular items, followed by the least popular stock.
Block stacking is an inventory storage approach that starts with a pallet on the floor and works well with sale-priced merchandise you expect to offload quickly. You can use racks with both the last-in, first-out and first-in, first-out methods for additional support and convenience. Shelves and bins are helpful for small quantities of items of different sizes, while dry storage and cold storage may be needed for sensitive items. Meanwhile, a sturdy packing desk inside the unit can help you package inventory items to ship out for sale and delivery.
Inventory Storage Management Tips
Once you have your self-storage unit filled with your small business inventory and organized, here are some best practices for keeping it maintained and managed well:
- Ensure all inventory is in one central place
- Research software systems for inventory management
- Do regular inventory checks to assess risks and damage
- Assign one employee as the manager of storage inventory for accountability
- Keep pathways clear to increase product visibility and reduce accident risks
- Keep track of reorder points to restock popular items
We Can Help with Your Inventory Storage Ideas
Something else to consider is where your self-storage unit is located so you can conveniently get to it whenever you need inventory items. At Stop & Stor, we offer storage units in many locations throughout New York City, and we have business and commercial units available with no long-term commitments and discounts for advance rental payments. If you’re looking to keep costs down, remember that ONLY Stop & Stor Guarantees its Rates for a Full Year, in writing! With every other storage company, it’s a gamble just how many times your rates will increase just in one year. Our exclusive Drive-Thru facilities get you to your space in comfort and ease. Spend less time doing inventory and more time selling your products. Stop & Stor locations provide easy access from anywhere in NYC, and most of our storage facilities have commercial truck loading docks to help you ship products to your customers with ease.
Contact us to learn about our extra-large commercial storage units and multiple-unit rental discounts. Our state-of-the-art security program will give you peace of mind that your small business' inventory is always safe with our 24/7 surveillance.
With our inventory storage ideas in mind, running your own small business or becoming an Amazon seller or Etsy entrepreneur has never been more within your reach!
Established in 1980, Stop & Stor is a family owned and operated business that has become New York’s Self Storage Leader by offering cutting-edge facilities in the Bronx, Brooklyn, Queens, and Staten Island.
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