6 Ways a Warehouse Management System Boosts ECommerce ROI!

ECommerce ROI

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Warehouses play a significant role in businesses that offer goods and products. Whether you have a physical or online store, they’re important since they hold these products and house your inventories but they must deliver a positive ECommerce ROI.

Since they are beneficial in your business, it is only important that you have an efficient system in place. That’s where a warehouse management system (WMS) comes in.

An effective WMS can significantly improve the efficiency of your business’s daily operations and optimize your warehouse’s overall function, as well as your ECommerce ROI.

What Is A Warehouse Management System?

Warehouse management refers to the supervision of your warehouse’s operations, which include the tracking and dispatch of products, training your staff, and monitoring inventories level.

A good WMS software can be an effective tool in improving the efficiency and productivity of your daily operations, which can then increase the profitability of your business. 

That said, here are some ways a warehouse management system can boost the ROI of your business.

1. Better Inventory Management

WMS can help enhance your inventory management, as it allows business owners to monitor their inventory levels. Thus, businesses can accurately estimate current supply and avoid backorders, improving customer satisfaction in the process.

Additionally, a warehouse containing a lot of goods and products can be tricky to navigate. With WMS in place, you can cut down the time and effort in locating certain products. Since they are registered in the system, it’ll be easy to look them up. 

Moreover, integrating your WMS with the enterprise resource planning (ERP) system can make it easier to develop accurate information about the performance of each product. You can utilize the product demand and seasonality to develop this much-needed information. Utilize the information to make reliable decisions about which products to adjust to improve the company’s profit margin or reduce losses. 

2. Improved Efficiency And Productivity

A good WMS software can help automate some tasks and processes in your operations. Automating repetitive tasks such as record keeping and inventory analysis can help improve the efficiency of your workforce and may reduce cost, which can then lead to a higher profit margin. 

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Additionally, some WMS utilize cloud-based storage, making it easier to access and input crucial information about products. This can help reduce the need to rely on manual data entry practices. Manual data entry can be reliable since it can be prone to human errors and backlogs. 

3. Efficient Labor 

A good WMS software can play a huge role in staff management and labor efficiency. It can allocate the right workforce to accomplish different tasks. The system can also consider the employees’ skills levels and proximity to the warehouse before allocating any tasks. Optimizing the travel time within the warehouse can play a huge role in improving the efficiency of your workforce.

The system will also use the information from the entry point to develop an accurate work schedule. This can certainly help reduce the need to double-check a team member’s availability, saving you a considerable amount of time and resources. 

Also, a WMS can help analyze the productivity of your workforce. This analysis can then be helpful when allocating available resources to improve revenue. 

4. Regulatory Compliance

Today, there are certain rules and regulations implemented to oversee the proper storage and distribution of goods and products by eCommerce businesses. Failure to comply with these rules may lead to fines, which might affect your overall profit margin. 

It might be challenging to keep up with ever-changing regulations if you don’t have the right tools with you. Adding WMS into your warehouse system can be a good starting point to ensure that your operations are rules and standard-compliant.

Additionally, this can help improve and preserve your reputation, which may lead to increased customer traffic.

5. Space Management

Another benefit of WMS is it can help you maximize the space in your warehouse. The system can analyze the floor space available and the products you have to store. Thus, you can determine the best way to use your space smartly.

This can help you reduce your holding costs and ensure you get the most out of your space. 

6. Improved Security

This is another way a modern warehouse management system may help improve your ROI. These systems require your employees to use their respective credentials when making or accessing transactions. This allows you to connect each transaction to a specific team member, improving accountability among your team and reducing the chances of theft and related security issues.

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The WMS also prevents illegal access to sensitive information that might affect the integrity of your business. This is because it only allows the user to see as much information necessary for their work. 

How To Choose The Right WMS For Your Business?

Now that we know how setting up WMS can be beneficial for your business, choosing the right program comes next. It is important that you choose a program that suits your business’s unique needs and demands.

That said, here are some factors you need to consider when choosing the right WMS for your business.


When choosing WMS, usability is of paramount importance. The system chosen should be easy to use when integrating and simplifying warehouse operations. This will reduce training time and improve the effectiveness of WMS in boosting your business’s ROI.

It’s also crucial to note that, the system is only effective if your workforce knows how to utilize it properly. 


Your eCommerce business is expected to expand in the coming years. Thus, the chosen system should be able to meet not just the current needs of your business, but also the future demands of the market.

Choosing a flexible system can be cost-effective in terms of reducing the costs of implementing another WMS to meet the shifts in the industry. 

Bottom Line

A good and competitive warehouse management system can play a huge role in improving the efficiency of your business operations, which can then boost your ECommerce ROI

For this reason, it’s crucial that you ensure that you get the best deal on the market. Thus, conduct enough background checks to guarantee you get your software from a reputable vendor, giving the value of your hard-earned bucks.

ECommerce ROI article and permission to publish here provided by Claire Glassman. Originally written for Supply Chain Game Changer and published on January 5, 2022.
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