A warehouse is a godown which provides for safe custody of goods dealt in internal trade and foreign trade. The services rendered by a warehouse are as follows:
- It provides storage facility for the goods when there is no great demand for the goods.
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- It facilitates easy transfer of ownership of goods. The transfer of ownership is effected by the endorsement of the warehouse warrant.
- It ensures re-export facility easily. The goods imported for the sake of re-export are stored in the warehouse which is situated near the dock.
- It helps in lessening of price fluctuations in goods. The goods are stored at the time of less demand and are released when the demand is gradually rising. By this, it enables in lessening price fluctuations.
- It gives facility for obtaining loan by hypothecating the goods warehoused to the warehouse man.