Warehouses are the backbone of the supply chain associated with any business. The warehousing sector has become dominant after implementation of the goods and service tax, followed by the pandemic. The government has given the logistics sector infrastructural status. Warehouses were once godowns and mismanaged empty spaces, but today they are the most crucial aspect of the e-commerce industry. No matter how efficient the website is with excellent marketing strategies, it will come to a standstill if it fails to deliver the products to the customer smoothly and in a timely manner. Similar to computers, warehouses are the control processing unit of the business. Warehousing is about abiding with the quality norms to maintaining the inwards and dispatching it to the customers.
Today, e-commerce businesses are dominant like never before. It is quite surprising to see the speed at which the market is growing, with customers choosing convenience over value while purchasing. This buzz is emulated in the nascent e-commerce segment. As a result, the e-commerce oriented retail models and the in-city warehouses are observing a tremendous demand. This will continue to rise in the years to come for various reasons.
The lockdown caused due to the pandemic has propelled the tendency to purchase online is an understatement. The pandemic has shot up the growth of e-commerce; it has compelled customers worldwide to buy online more often than ever before. This trend is expected to rise in a few years, which will eventually increase the need for more storage and distribution facilities. This rise in the sales of goods purchased online by the customers has led to the demand for warehouse space to increase at large, with in-city warehouses coming up as a new reason for expansion. The closing down of physical shopping centres in the past few years has led to the conversion of these spaces into various e-commerce facilities. Along with this, A-level warehouses outside the city centre are emerging as the latest trend.
The incidents that have occurred have not just increased the sales of goods online, but resulted in a significant expansion in the range of products offered for sale. Earlier online shopping was primarily limited to books, clothing, etc., but various online shopping websites have seen a surge in groceries, furniture, and electronics sales. Although the margin behind the sale of these products is low, the demand is sustainable. To store such huge quantities and variety of products in-city warehouses is the need of time. These goods are brought locally to make profits in unit economics, thereby making in-city warehouses the core of these businesses’.

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