What should I look at in an online store’s warehouse or fulfilment partner?

Ask for the agreement with the warehouse or fulfilment partner and read it for the practical points: pricing, minimum commitments, notice to end it, who owns the stock held there, and what happens on a change of ownership. Ask whether any terms are different from what the seller told you. Ask whether the partner has a backup site or another location, in case something prevents them from shipping for a while.

Then look at performance. Request records of shipping times, wrong items, damaged goods, lost parcels and customer complaints that trace back to the partner. Ask how the partner handled mistakes and whether the owner had a direct contact. Tour the space if you can, or ask for a video, to see how orders are picked and packed there.

Check the stock. Ask for a count that matches what the books say, and a clear record of what is held, what is damaged and what is on its way. Ask how returns are received and restocked. Finally, ask about alternatives. If the partner stopped working with the store, how hard would it be to move? An arrangement with no easy exit is a risk worth understanding.

Key takeaways

• Read the contract for fees, notice, stock ownership and change of owner.
• Review records of delays, wrong items, damage and returns.
• Match the physical stock count against the books.