How Your E-commerce Business Can Tackle the High Demand for the Warehouse Space Dilemma

In today’s competitive market, E-commerce is the most effective and efficient way of doing business. As more and more companies shift to E-commerce, sellers in the business-to-business and the business-to-consumer industry are buying up warehouse space at a record pace.

New research from Cushman & Wakefield, a commercial realtor and services firm, found that E-commerce companies had accounted for 28.2% of all industrial absorption from 2016 through 2019, and that number has dramatically increased to 40% from 2020 to 2021.
Source Commercial Observer

In 2022, this trend is likely to continue–leasing demand for more E-commerce warehouse space will remain high, and so will prices. For the foreseeable future, companies can tackle this dilemma, get ahead of the curve and continue to grow their business by implementing a marketplace to their existing E-commerce strategy.

The marketplace model eliminates the need to acquire additional warehouse space since marketplace suppliers are fulfilling and shipping products directly to the customer. It reduces the cost of real estate space, as well as the need for additional headcount required to staff new warehouses.

Not only does an online marketplace reduce the need for acquiring additional warehouse space, it helps companies better serve their customers. The online marketplace model allows companies to increase the number of sellers and products without having to buy up additional space, providing customers with a broader range of products, as well as more complimentary products to suit their needs.

The MarketPush marketplace serves the B2B wholesale and distribution markets by integrating an online marketplace into a company’s existing E-commerce strategy. From ideation to development, MarketPush helps to launch and integrate an E-commerce marketplace strategy that can increase sales and provide a primary destination site for their customers.

E-commerce is the modern way of doing business and it’s here to stay. Large companies like Amazon will continue to buy up warehouse space and contribute to an increase in warehouse leasing demand.

It is up to companies to find a successful E-commerce strategy that will tackle this dilemma head on. An online marketplace is a cost effective way to help companies stay ahead of the curve, reduce warehouse costs and continue to keep their customers happy.

Have more questions? Get in touch with a MarketPush expert to see a marketplace in action or discuss how to help your company embrace the future of E-commerce. Email us at sales@marketpush.com.