The Solution (To Meeting the Ever Growing E-Commerce Appetite for Warehouse Space)

By Oleg Mikhailenko
Published in Solutions
August 24, 2020
3 min read
The Solution (To Meeting the Ever Growing E-Commerce Appetite for Warehouse Space)

The global e-commerce market is expected to break the $5 trillion Dollar amount for the first time in 2022, having taken less than five years to double its market size. As a result this growth in sales is predicted to create an adjacent demand for over six billion more square feet (five hundred and fifty million square meters) of warehouse and storage space globally between now and 2025 in order to help sustain this growth. Of this six billion square feet at least one billion of it will be needed in the United States alone.

Six billion square feet is a lot of warehouses. Think of a building that measures 15 miles by 15 miles or 225 square miles. Think about a space around the size of the cities of Chicago, Madrid or Seoul. In short the world needs a lot of warehousing space and fast in order to be able to meet the ever increasing demands of the consumer where “out of stock” and “not available for delivery tomorrow” are no longer acceptable answers.

Although this increase in demand could be met through just building more space, other factors, not least the environmental impact of building hundreds of new “mega-warehouses” is completely unnecessary if the billions of square feet of currently underutilized and unused existing storage space could be put to use.

So how do we do this? There are already a myriad of companies offering the ability to manage your inventory in their “network of global warehouses”, however in most cases the distribution of these warehouses is poor and they are just subletting space off other warehouse owners. For smaller, privately owned enterprises, possibly looking for their first venture into third party logistics in order to help their e-commerce business grow, this process can be highly intimidating. Similarly in today’s instant world filling in an online form and then waiting days if not weeks to be presented with a price and a solution does not “scratch the itch” where we need answers now in order to make the business decisions where hours, never mind days, can be the difference between being able to accept an order or not.

So again, how do we do this? We do this by taking a leaf from a number of other industries and harnessing the power of the shared economy. Just like Uber and Lyft with regards to ride hailing, Turo for car sharing, Airbnb for lodging, P2Pseller allows anyone with any available storage space, from a complete million square foot warehouse, down to the empty corner of an office, to make that space available to the global e-commerce community and more importantly for them to be able to put that valuable asset to work.

Go to the website or the app, enter information on where you need to find space, or how much space you need, or how long you need it for, or how much your budget is, or what added value features you may need from your warehousing partner, or any combination of the above and click! Voila! Just like these other shared economy sites that you already know how to use, you are now immediately presented with all your options and most importantly you can immediately see what those potential partners can offer you, what their reputation and user reviews look like and how much that space will cost you. Find what you need and find out its cost, along with any other services you may have requested in seconds. No waiting around for a sales representative to contact you and then give you the hard sell. Find and book what you need as quickly as you can find and book that ride to your favorite restaurant after work. Need someone that can re-package for you? Click. Need someone that can handle the outbound or inbound freight? Click. Need someone with climate control? Click. Once you have found your potential partner the platform will handle all the necessary communication between all parties to get your products into your customers hands as quickly and efficiently as possible.

On the flip side anyone with available storage space can post that availability on the site and get in front of those folks looking for help. Warehouses are great but perhaps you have an empty commercial property that can take smaller packages? The pandemic has changed working habits so put that empty office or retail space to work until the world comes to its senses. Similarly through the app and website individuals already used to the shared and gig economy approach to finding work can make their skills available to anyone needing help from a few hours to a few weeks at the times when they are available. Need some help for a few hours to unload a container? Do the search. Need a bilingual warehouse supervisor for a week to help you set up a new space? Do the search.

By allowing literally anyone with available storage space, anywhere in the world, to put that commodity to work, will allow any size of business to find the storage space and resources they need, where they need it at a price they can afford through a democratic and open marketplace.


Previous Article
The Business Model (Or Where Does the P2Pseller Revenue Come From?)

Oleg Mikhailenko

Co-Founder, CEO P2Pseller

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