Distribution warehouse business ideas include designing, building, and running warehouses that store and send out goods.
Warehousing operations can be for the storage and delivery of finished products or raw materials to manufacturing facilities, or for distribution centers that sort and distribute merchandise from manufacturers.
Before we move any further, we have also put together the best warehousing business ideas you can start even with little capital.
What is distribution business?
A distribution business is one of the supply chain sections that deliver products and materials from a producer to a retailer.
If you have a warehouse that is empty, you can buy items from manufacturers and sell them to retailers for a profit. Starting a distribution business isn’t rocket science. All you need is adequate preparation and determination to succeed.
What is a distribution warehouse?
A distribution warehouse is the backbone of many large companies. All products that are not sold through retail channels go through a distribution center, where they are packaged and sent out to all corners of the country.
Before we move any further, you need knowledge of warehousing. You can simply get it here. How To Start a Warehousing Business for Investment
Fortunately, if you have little experience in logistics and technical know-how to operate a forklift truck, there are some great distribution warehouse business ideas to leverage.
These five business ideas for distribution warehouses will give you an idea to start a distribution business today.
List of distribution warehouse business ideas in 2022
- Self-storage warehouse
- Wine distribution warehouse
- Electronics distribution warehouse
- Pet food and other animal food storage warehouses
- Drop-off center
Let’s get to the details.
1. Self-storage warehouse:
This self-storage facility charges customers by square foot (or square meter) for storage space. The owner buys a lot for rental and then charges customers by the square foot (or square meter) for storage space.
This is one of the distribution warehouse business ideas with high margins if the owner can add enough storage space. The self-storage facility charges customers by the square foot (or square meter) for storage space.
The owner buys a lot for rental and then charges customers by the square foot (or square meter) for storage space. The business has high margins if the owner can add enough storage space.
2. Wine distribution warehouse:
Wine is a luxury product, requires special attention and handling. If you are buying or shipping a load of wine from California or some other wine-producing region, this is a great business opportunity, as it will give you exclusive access to large wine distributors that want to get their inventory out of California fast and at a good price.
For this distribution warehouse business idea to work, you will need to know the wine business, and then get to know wine distributors through wineries in your area. You’ll need a truck that can haul large quantities of wine. You can also add exotic drinks distribution to this warehouse business.
The reason is that major breweries have huge distribution centers. For example, some companies produce millions of gallons of wine a year. The inventory process is through 4 full-scale production lines that are spread across the facility, some of which produce 20 million barrels (MMB) and some 30 MMB each year, depending on the season.
3. Electronics distribution warehouse
Selling a specialized product such as electronics through a distribution channel will give you access to the major retail chains. The trick is to find a niche that no one else is serving and for which you can build up enough volume to get the volume discounts you need.
This distribution warehouse business idea will work best if you have inventory that you can get in a quantity that will be small enough so as not to tie up your capital, but large enough to offer you some negotiating power. It’s also important for you to have the logistics expertise necessary to turn over inventory quickly and efficiently.
4. Pet food and other animal food storage warehouses
If you live in an area where there are many pet owners (and it doesn’t have to be as large as NYC), then you can start this business. You should be able to find a local grocery store chain that will partner with you, or at least get some fees for putting your business name on their dog treats and biscuits.
5. Drop-off center
This center is where people from all over come to drop off products that they no longer need. It’s an easy way for a lot of people to earn cash because it doesn’t require much training or skills and usually does not require much space either.
This distribution warehouse business idea will work if you have products that people need from time to time, and can quickly move them off the shelf when people come asking for them. If you can get access to a truck or vans that are up for sale on Craigslist, it will also make your drop-off center business idea a lot more viable.
I have curated the Top 50 Empty Warehouse Business Ideas to Start Immediately as a bonus for you.
Warehousing & Distribution
Warehousing & distribution is the process of storing goods in an empty warehouse for distribution purposes. Warehousing & distribution are two things to combine for good business if you have an empty warehouse. They are both indispensable if you really want to be a wholesaler or a major distributor of a major product.
In today’s competitive marketplace, it is important that every company have an efficient distribution system in place. This is why you need the distribution warehouse business ideas to support the operations of companies that are looking to increase productivity, and stock more efficiently.
You might need to study different distribution business models and deploy a good distribution business strategy before you start.
A distribution center will help store the right product mix for a company, put together pre-assembled product kits, and even assist in maintaining a top-notch image of the brand in its retail environment. The volume-driven nature of these distribution warehouse business ideas has wide margins of profitability and can be another steady stream of income.