What is “Housing” in Ecommerce?

What is “Housing” in Ecommerce?

“Housing” is a term used in the world of ecommerce that refers to the storage of products in external warehouses for subsequent shipment to end customers. This concept has become increasingly popular in recent years due to the rise of online demand and the need for more efficient logistics.

Instead of storing products in a single location, companies use external hosting services to store their inventory. These housing services often include a wide variety of services such as storage, sorting, packaging, and shipping. Additionally, they may also offer additional services like labeling and product customization.

What is the Purpose of Housing in Ecommerce?

Housing offers numerous benefits for ecommerce businesses. One of the main benefits is the reduction of storage costs. By storing products in an external warehouse, companies can significantly reduce storage and logistics costs, which can improve long-term profitability.

In addition, housing can also improve logistical efficiency. With an external warehouse, companies can achieve faster and more efficient shipments to their customers, as the products are located closer to distribution points. Additionally, with specialized staff in storage and inventory management, companies can improve accuracy and efficiency in managing their inventories.

Another benefit of housing is the flexibility it offers to companies. Companies can quickly adjust the amount of inventory they store based on market demand. This can be particularly useful for companies experiencing seasonal peaks in the demand for their products.

Examples of Housing in Ecommerce

One of the main examples of housing in ecommerce is Amazon FBA (Fulfillment by Amazon). Amazon FBA is a service that allows companies to store their products in Amazon’s distribution centers and leverage the company’s logistics network for shipments to their customers. This service enables companies to take advantage of Amazon’s infrastructure and logistics expertise, significantly improving the efficiency and profitability of their operations.

Another example of housing in ecommerce is ShipBob, a company that provides hosting and shipping services to ecommerce businesses. ShipBob offers a variety of hosting services, including storage, sorting, packaging, and shipping of products. Additionally, they also provide additional services such as labeling and product customization.

Another example is RedStag Fulfillment, specializing in inventory management and shipping of ecommerce products. The company offers storage and sorting services, as well as customization and packaging services for products. Additionally, they also offer tracking and inventory management services to ensure that products are available and delivered on time.


Housing in ecommerce is an increasingly popular strategy for companies looking to improve the efficiency and profitability of their operations. By hosting their products in external warehouses, companies can significantly reduce storage costs and improve logistical efficiency. Additionally, they can take advantage of specialized inventory management and product customization services.

There are numerous housing services available for ecommerce companies, such as Amazon FBA, ShipBob, and RedStag Fulfillment. Each one offers a variety of services to meet the specific needs of businesses.

In summary, housing in ecommerce is a valuable strategy to improve efficiency and reduce storage and logistics costs. By leveraging specialized hosting and product shipping services, companies can enhance the efficiency and profitability of their operations and provide a better shopping experience for their customers.

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