Demand for in-city warehouse may increase as e-tailers target same-day delivery

In-city warehouse to facilitate one-day delivery in the major demand hubs and decrease the cost of transportation.

The demand for small warehouses within city limits is expected to rise over the next one year as e-commerce firms are targeting to ensure same-day deliveries of food and groceries items to customers, according to a report.

E-commerce companies are focussing on same-day delivery with the pandemic-influenced lockdowns placing greater dependency on e- commerce for food and grocery items,’ the report said. The consultant said that e-commerce companies are now trying to stock a larger proportion of inventory closer to their customers’ locations for efficiency and to improve the quality of products upon delivery

It is being planned that the ground level spaces which are mostly older and less utilized would also to converted into warehouses. These warehouses by the e-commerce firms are likely to do so as they try to improve the quality of the products over deliveries by stocking up a large portion of the inventory close to the customers.

The e-commerce companies are likely to occupy 5,000 – 10,000 sq ft size site to fulfil this demand. “Over the next 12 months, we believe in-city warehouses will gain traction, to be used as small distribution hubs. We expect occupiers to scout for in-city warehousing space in the range of 5,000-10,000 sq feet in major demand hubs such as Mumbai, Bengaluru and Chennai and the NCR,” added in the report.

Over the years, we have seen an increase in the e-commerce business, and owing to the lockdown which led to the closure of malls have just been the cherry on the cake for these e-tailers. As the demand for these e-commerce sites increases, the businesses are getting shifted to omnichannel business models which therefore automatically put-firths the demand of in-city warehouses.

This increase in the in-city warehouse would now only aim at faster deliveries for the customers, but would also benefit the companies as it would reduce the cost of transportation. As of now, warehouses in the top Indian cities are being mostly at a far off distance from a larger customer base by largely being restricted to the peripheries.

 

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