I have an ecommerce shop that is mostly one product (it only weighs a few ounces). I sell between 60-120 orders a day on Shopify, but that is going to keep going up. I sell between 80-120 units a day on FBA, and that will go up as well.
I currently use a 3PL to fulfill, but as orders go up, there will be cost savings if I fulfill in-house, even though I would be hiring help. Beyond the savings, my product can be susceptible to the summer heat, and it's easier for me to implement solutions for this (such as flash freezing and using ice packs) if I'm fulfilling them in-house.
I have been looking at office/warehouse space, but the cheapest is well over $2K/mo + utilities.
I currently pay $1,800/mo to rent my home. So if instead of a warehouse I just get a significantly larger home for like $1K more than what I currently spend on rent, I can:
- Avoid the burden of having to travel to the office/warehouse to manage stuff
- Pay way less total rent and avoid paying a second set of utilities.
- Write off the portion of my home and utilities being utilized for business (just as I would have written off the cost of the office/warehouse)
- Enjoy the benefit of having a bigger, more upscale home
I understand that this could limit my ability to expand, but as long as it could accommodate quite a few pallets, I would think that I'd be good for a while. I understand that there is often an extra charge to delivery freight to a residence, and that I need to make sure that large trucks can enter. I'd probably want to invest in something like this: https://www.uline.com/Product/Detail/H-5439/Stackers-and-Positioners/Straddle-Stacker-63-Lift.
I've never seen a discussion of this type of thing before, but it seems to make sense for me. Please tell me what I'm missing.