Demand for specialised e-commerce warehousing is growing as the number of online purchasers in South Africa is expected to increase from around 11.7 million to 21.52 million by 2029.
According to Statista’s Digital Market Outlook, this growth will be supported by increased Internet penetration, up from the present 76% to around 98% in 2029.
For warehouse operators the first challenge is space – due to the diversity of products expected by online shoppers, e-commerce requires up to three times more storage area than traditional warehouse operations.
Retailers transitioning from physical shops to online sales will also need around three times more storage space than previously.
The e-commerce transition is not confined to retail, with business-to-business volumes also growing.
To keep costs down and reduce delivery times, the warehouses must be close to the customer base.
This often means having to invest in more expensive real estate.
“Customer expectations for faster delivery times are increasing day by day,” writes Aakanksha Gupta, a senior content specialist at Warehouzez.
“By choosing warehouses in prime locations, companies can minimise transit times and shipping costs, thus enhancing the overall customer experience."
- Read the full article in our Freight Features edition on "Warehousing, Depots & Distribution."
