General

Relationship Between the Global E-Commerce, Warehousing and Storage Markets

It’s no secret that over the past two years, e-commerce has undergone an unprecedented boom. Before 2020, sales metrics for orders through online channels went up each and every year, yes, but it was all fairly proportionate growth from quarter to quarter. A predictable increase in sales percentage over time. But since the Covid-19 pandemic, sales have absolutely exploded. Ten years of expected growth have occurred in mere months, leaving merchants, fulfillment partners, and market analysts scrambling to keep up. 

The positives of such inconceivable growth are that much-needed changes have been all but forced on a once-stagnant industry, forcing a segment of the global market once dependent on phone calls and filling out forms to catch up with the rest of the 21st century. On the other hand, an increase in demand for e-commerce also brings with it an increased demand for warehousing, order fulfillment, and shipping services. Storage space just for online orders alone is projected to need to increase by 25% by 2025 just to keep up with the mounting demand. In a world where consumers expect their orders within two days, customer relationship management is an ever-increasingly important part of any e-commerce business. Delivery delays due to a lack of distribution facilities simply aren’t acceptable. But creating all this space from scratch by building new facilities would not only be expensive, but have a severe ecological impact to boot. Where is all that space supposed to come from?

The obvious answer is to use the existing facilities we have in a more efficient way. Certainly, there’s the odd building out there that could use a little optimization work. But when it comes to large corporate warehouses run by e-commerce companies such as Amazon, who are notorious for running a tight ship, this solution is unlikely to make much of a measurable difference. Perhaps a few percentages of extra room could be found, but not much more. 

The solution might be found, however, in the results of the same pandemic that caused this increased demand in the first place. In the aftermath of quarantine and work-from-home measures, a lot of office space is left empty that could easily be converted into light warehousing. The same goes for retail locations that are keeping less product on hand due to the decrease in customers passing through their physical locations. Even workers that are currently operating at home often have a garage with free space and a desire to make a little extra money on the side. By allowing people to monetize this spare room on a democratized and open market by offering it up for storage capabilities could solve a lot of issues. 

P2Pseller does just that. By allowing literally anybody with room to spare to offer up that space for warehousing, fulfillment, and storage services, we not only assist everyday people in gaining a secondary revenue stream, but alleviate the intense pressure the e-commerce industry is under at the moment by producing extra footage for the storage of goods with little additional ecological or economic impact. We’re ecstatic to be at the forefront of the e-commerce revolution and bring this industry into the 21st century, letting it work hard for customers and merchants alike.

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