What drives on-demand warehousing in India?
On-demand warehousing is a relatively new and unique concept for those who are new to warehouse companies in India’s sector. It is an online platform that allows sellers to keep their goods and fulfill orders with warehouses that have plenty of space. Simply said, third-party fulfillment is outsourcing your order fulfillment to a company that does not provide fulfillment services but outsources it to other platforms that do.
Let’s dissect this.
However, if demand is changing or seasonal, investing more funds in warehouse companies in India’s facility is not practical. For example, even though a seller can manage inventory on an average day with the regular amount of sales, certain times, such as festival season, can result in an influx of orders that exceed the seller’s storage capacity. On-demand top warehouse construction company in India enter the scene at this point. Sellers can use on-demand warehousing to temporarily rent storage space from a platform until the busy season is over.
When demand returns to its normal level, the seller can resume self-fulfillment of orders at their leisure.
On-demand warehouse company in India, on the other hand, have exploded in popularity recently, with an increasing number of merchants opting for them. What, though, is fueling this demand?
Agility and flexibility
On-demand top warehouse construction companies in India give sellers a lot of flexibility, especially D2C sellers who deal in consumer electronics, clothes, health, personal care products, and other products with seasonal demand spikes. On-demand top warehouse in India is a convenient, cost-effective, and seamless option that allows sellers to use order fulfillment/storage services as and when needed, rather than hiring a whole warehouse in India or investing a substantial sum of money in owning a separate warehousing location.
Consumer demand is changing, and e-commerce is booming.
Consumer demand, behavior, and preferences have all changed dramatically in recent years. Consumers nowadays expect frictionless, tech-enabled services and same-day/next-day deliveries, which on-demand warehousing can provide. E-commerce sellers/businesses can leverage platforms that have warehouses close to the customer’s location to get on-demand warehousing services, allowing for faster deliveries and more customer satisfaction.
Furthermore, while e-commerce was already a fast-growing business before the pandemic, the crisis exacerbated demand as more people turned to online purchasing for both vital and non-essential commodities. The e-commerce boom has been aided by rising internet penetration and smartphone usage, which has increased the number of e-commerce vendors in the business. With the rise of e-commerce, the demand for on-demand warehousing is increasing.
Is this a fad or a permanent shift?
Given how the pandemic has affected numerous facets of logistics and warehousing, on-demand warehousing is likely to win out in the long run, as it provides flexibility and a cost-effective solution.
Indeed, as more sellers enter the competitive e-commerce sector and seek to reduce fixed warehouse in India costs, demand for on-demand top warehouse construction companies in India will increase.
Conclusion-
As logistics companies change and adapt to changing circumstances, as well as changing consumer expectations and behavior, BuildMyInfra can help you in strengthening your infrastructure to effectively address the long-term structural shift and growing need for flexible warehousing.
In the long run, on-demand warehousing and logistics players will need to be flexible, cost-effective, and provide high-quality service to survive and flourish. Contact us today to learn more.