How Marketplace Technology is changing how we find Warehouse Space

eCommerce needs three times more space than typical retail. You need more space for inventory, automation and labour. In the UK, we spend more than £7 billion a year in returns. 60 per cent of goods bought online are returned. A huge difference to the small 6 per cent of goods bought in-store.

Marketplace Technology

As well as warehouse space, companies are also putting in huge investments in warehouse technology. Businesses are now spending between £30 million and £100 million by using a completely autonomous supply chain such as pickers and more.

With 30-40 per cent of warehouse occupiers being e-commerce, we are in an increasingly demanding and fast-paced market. Analysts believe that while these businesses currently peak at 17-20 per cent of the UK’s total sales, this could easily reach numbers above 22 per cent.

Shared Economy

We are currently experiencing what is called “shared economy” and it is completely changing the estate industry. Warehouses are developing how they utilise their space and increasing the number of occupiers are renting space on-demand or pay-as-you-go basis. This new view on hunting for space is a base for how retailers are responding to the “want it now” culture.

Currently, 19 per cent of shoppers wants deliveries within 30 minutes, 28 per cent in less than an hour and 21 per cent in less than 2. However, these customers are reluctant to pay more for faster deliveries, with 54 per cent opting out of asked to pay extra. This increasing demand affects warehouses, with the best option being to expand space vertically.

Add more Space with Monarch Shelving Ltd

The demand can seem somewhat overwhelming, but it doesn’t have to be. With a wide selection of new and used storage solutions at Monarch Shelving Ltd, we can work with you to create the ideal warehouse for your business. If you would like to learn more about our range of products, get in touch.