retail logistics

Retail Logistics


Retail Logistics

In this short training video, we will explore a question that people often ask us, when starting a retail business; Should I store my products in my garage or hire a logistics company? This is a consideration as it can impact your business operations and overall success!

Initial Stage

If you’re just beginning and have inventory to sell, it might be feasible to ship the products from your garage. This approach can save you the expenses associated with hiring an external logistics company while also providing a solution, for order fulfillment. However as your business expands and you start selling quantities it’s essential to reassess your storage options.

Scaling Up

The challenge occurs when you secure a buyer in purchasing significant quantities of your product. In cases finding an appropriate storage solution becomes necessary. While the retail buyer may not initially inquire about where you store your products they will want assurance that you have a long term storage and fulfillment plan, in place.

Establishing Trust with Buyers

When approaching buyers demonstrating consideration of the logistical aspects of your business is crucial.Even if your products are currently being kept in your garage you can reassure the buyer that you have a plan, for growth. This involves reaching out to logistics companies exploring pricing options and identifying storage facilities. By demonstrating that you have taken these factors into consideration you can establish trust with the buyer. Increase the likelihood of forming a partnership.

Considering the Future

While it may be acceptable to start by storing your products in your garage it’s crucial to have a long term strategy in place. As your business. You continue working with buyers finding a more suitable storage solution becomes essential. This could mean renting warehouse space partnering with a fulfillment center or even setting up your dedicated storage facility. The specific approach will depend on the nature of your business and the volume of products being sold.

Managing Retail Logistics

In summary whether to store products in your garage or engage a logistics company depends on the stage of your business and the volume of products being sold. While shipping from your garage may be feasible initially it’s important to have a plan, for long term storage and fulfillment as your business grows.
It’s important to show buyers that you’ve thought about these factors. This will help establish trust and improve your chances of success.

Keep in mind that the objective is to offer an experience, for your customers and be able to meet the needs of your partners. So take some time to assess your storage choices and make informed decisions that will facilitate the growth of your business.

retail logistics

Retail Logistics - Transcript Outline!

When I conduct workshops and classes a common question that comes up is, “Karen I want to approach big box stores but all my products are currently stored in my garage. Do I have to hire a logistics company to handle storage and shipping? Is it necessary to work with third party companies for managing these aspects. How does the whole process work?” This concern is understandable because partnering, with a logistics company comes with expenses. It’s crucial to make informed decisions to secure those buyer orders. Lets dive into the details of this topic to gain clarity, on how you can proceed with retail logistics!

Depends on the Stage Of Your Business

The answer isn’t straightforward as it depends on the stage of your business journey. If you’re just starting out and have a number of units to sell it might be possible to ship products from your garage. However things get complicated when a retail buyer expresses interest and places an order. Say, one hundred thousand units. At this point you need to consider where you will store such an inventory.
At first buyers may not be too concerned, about where you keep your products as you can deliver the initial order for testing and entering the market. However they will want assurance that you have carefully considered your storage and shipping strategy in case your business expands. When approaching partners and discussing collaborations it’s important to be prepared to address the storage and logistics aspect. Showing that you have a planned growth strategy will boost your credibility and foster confidence in the partnership.

Now lets explore some points to consider when it comes to managing logistics and product inventory for box retailers;

Start with a Manageable Quantity; When starting out with retailers it’s feasible to handle storage and shipping from your own garage or a small storage space. Focus on orders until you gain an understanding of how well your product performs in the market.

Plan for Scalability 

As you present your product to big box retailers outline how you intend to manage storage and logistics as your business expands. Conduct research on logistics companies. Inquire about their capabilities and pricing, for scaling up.

Consider looking into third party logistics (3PL) providers. These companies specialize in handling storage and shipping for businesses, like yours. By partnering with a 3PL provider you can save time and resources that can be better utilized for growing your business.

Take the time to evaluate the costs involved in managing logistics versus outsourcing to a logistics company. Consider the effort, time and potential difficulties that come with handling it all on your own.

When selecting a logistics company make sure to choose one with a track record and expertise in serving businesses to yours. This will ensure that you are working with professionals who understand your needs.

If consider utilizing fulfillment centers. These dedicated warehouses store and ship products on behalf of businesses. Some fulfillment centers even specialize in working with e commerce sellers. Offer integration options with platforms.

Another option worth considering is dropshipping. This method involves shipping products from the manufacturer to the customer eliminating the need for you to handle inventory or storage.

Implementing an inventory management system can be beneficial well. It helps you keep track of product levels determines when reordering is necessary and provides insights into stock availability.

Stay flexible in your approach to logistics as your business evolves. Be open to adjusting strategies when needed. Maintaining lines of communication, with your logistics partners will enable you to handle any changes or challenges that may arise effectively.


Consider implementing an inventory strategy to minimize stock and reduce storage costs.

It is important to be aware of the requirements set by retailers regarding storage, packaging and shipping. Complying with their guidelines is crucial, for establishing a partnership.

In summary while initially handling storage and shipping from your garage may be feasible it is vital to plan for scalability and develop a long term logistics strategy if your business gains traction with retailers. Collaborating with a logistics company or exploring options like dropshipping or fulfillment centers can provide the necessary support in managing inventory for retail giants. Remember to maintain transparency with buyers about your logistics plans as it demonstrates your commitment to being a partner and increases the likelihood of securing retail orders. As you pave your path towards success let creativity and adaptability guide you towards achieving greatness in the industry. Best of luck, on your journey

retail logistics

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In this training, I will discuss some of the things to think about when approaching a retailer to sell your products and become a vendor. Hope it helps! 🙂

Karen Waksman,
Retail MBA

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