Shopping methods have completely transformed over the last ten years. We no longer need to get ready and drive to retail stores for a lengthy product search. Instead, we buy products through online platforms and receive them directly at our address.
E-commerce has expanded tremendously after COVID-19 because of the sudden rise in online shopping. But, this growth in online shopping has generated one clear requirement, additional warehouse. This blog explores why this growing market creates the need for additional warehouse property and from where you can get that.
Why E-commerce Needs More Warehouse Space
Recall when you made your recent online purchase. As a customer, you expect to receive it quickly. A fast and dependable shipping process is what current customers demand. So, to meet customers’ requirements more warehousing space is essential. Moving products from producers to consumers faces significant challenges that people may not expect. Therefore, E-commerce businesses rely on warehouses that provide adequate storage and ideal locations for fast delivery services.
Moreover, the management of online stores is a tough task as their stores offer large inventories of products for sale. As a result, they need to stock all of these products in advance at different warehouses to process orders within days.
Key Factors Fueling Warehouse Demand
1. Customer Expectations for Speed
According to a survey, 56% of customers expect their orders to arrive within a day or even instantaneously. It would never have been possible to meet this deadline if companies were still processing orders from miles away. But now, business owners rent warehouses in different cities to ensure fast delivery service to their customers. After all, the faster the delivery, the happier the customer.
2. Omnichannel Retailing is Growing
Companies are selling their products on online platforms as well as physical store locations. This is called omnichannel retailing. When customers switch between online shopping and in-store purchases, it raises the need for warehouses that support these hybrid buying methods.
3. Wider Product Variety
Traditional retail stores face limitations when it comes to offering an unlimited array of products; however, online retailers do not share this restriction. Since online stores operate digitally, they present shoppers with an endless selection of products. So, to sell a variety of products, businesses also require more storage space.
4. Role of Technology in Warehouses
Modern warehouses serve multiple functions beyond standard storage operations. They use robotic and AI technology to deliver goods to customers. But setting up and running these kinds of high-tech warehouses requires specialized space. As a result, the need for advanced warehouses has increased.
Types of Warehouses E-Commerce Businesses Need
Different warehouse types serve specific business types. An e-commerce business needs specific types of warehouses to match its functional requirements.
Traditional Warehouses for Storage
These are the traditional warehouses where products are kept until they’re needed. They are often located in low-cost buildings and may lack the latest technology. But they are still useful for startup businesses that don’t require superfast shipping or sophisticated systems.
Fulfillment Centers
When you order online, these are the centers that pick, pack, and ship your product. Warehouses use advanced technology and automation to facilitate an efficient process. They’re especially popular among large e-commerce companies like Amazon that have thousands of orders a day to process.
Last-Mile Delivery Warehouses
Ever wonder how your package can move from a warehouse to your doorstep so quickly? That’s where last-mile delivery warehouses fit in. These smaller local warehouses assist in getting your order from the main warehouse to your home. They’re typically stationed close to urban centers to facilitate faster delivery times, and they’re crucial for companies that provide same-day or next-day delivery services.
Future of E-commerce Warehouses
The need for warehouse space isn’t going to disappear. In reality, as e-commerce continues to expand, there will be increasing demand for storage spaces. It will continue to change as more businesses move towards automation and AI to improve their processes. As global shipping becomes critical, warehouse demand will also increase to support the growth of global e-commerce.
E-commerce businesses will put efforts into seeking ways to get warehouse space. From vertical storage to more sophisticated inventory management systems, there are plenty of ways to make the most of the space available.
Conclusion
The boom of e-commerce has transformed how we shop, but it has also increased demand for warehouse space. As online orders and expectations for fast shipping continue to rise, businesses need to invest in warehouse facilities, whether that be for storage, fulfillment, or last-mile delivery.
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