Why In-City Warehouses Play an Important Role in E-commerce Businesses

The e-commerce industry in India is experiencing an unprecedented period of growth and opportunity. As the second-largest consumer market in the world, India offers immense potential for e-commerce businesses to scale and penetrate further. This growth is fueled by evolving consumer preferences, with convenience becoming a top priority in purchasing decisions. As a result, in-city warehouse space for rent have emerged as crucial enablers for quick commerce and other convenience-centric retail models.

In this blog, we will explore why in-city warehouses play an important role in the success of e-commerce businesses.

Increase in Online Buying Frequency

The COVID-19 pandemic and subsequent lockdowns have accelerated the shift towards online purchasing. Consumers worldwide are now buying online more frequently than ever before, and India is no exception. In just a year, the e-commerce market size in India more than doubled, reaching US$84 billion. This trend is expected to continue, driving the need for storage and distribution centers. The increased number of online orders has created a high demand for warehousing space, resulting in a new focus on expanding in-city rental warehousing in North Chennai. Furthermore, the conversion of physical retail spaces into e-commerce fulfillment centers has added to the rise of in-city warehouses.

Rise of Hyper-Quick and Hyperlocal Delivery Models

The evolution of e-commerce has expanded the range of products consumers are buying online. From discretionary purchases like books and apparel, consumers now rely on e-commerce channels to purchase daily staples such as groceries and meat. Distributing these low-margin items requires maximum efficiency to ensure business sustainability. As a result, delivery networks have been tailored to cater to these products. Warehousing companies in India, particularly those with a network of city-based warehouses, play a crucial role in supporting these business models. They enable the storage of locally sourced products in proximity to heavily populated areas, thereby optimising unit economics.

Need for Shorter Delivery Timelines

Consumers increasingly demand shorter delivery timelines, even for discretionary purchases. The rise of quick commerce players has set new benchmarks for delivery speed, and every business must keep up with these expectations to survive in the industry. To meet the demand for same-day deliveries, larger e-commerce players are expanding their delivery networks into city premises, complementing the larger warehouse ecommerce fulfillment solutions located on the outskirts of major cities. The emergence of quick commerce is pushing the boundaries of delivery timelines, making in-city warehouses invaluable for ensuring timely deliveries.

Scarcity of In-City Warehousing Real Estate

While the demand for goods in the e-commerce industry seems boundless, the availability of strategic in-city warehousing real estate is limited. As the competition intensifies, e-commerce businesses are realising the importance of securing in-city warehouse spaces. To address the scarcity, multistoried warehouses are being developed within urban localities, maximising the use of limited space. Being one of the first movers in securing these diminishing in-city spaces can provide a significant advantage in the highly competitive e-commerce landscape.

About us 

Hiranandani Industrial Parks in Red Hills, Chennai is an in-city warehousing company in India that boasts a strategic location with excellent connectivity to multiple multimodal transport facilities and logistic hotspots. This prime location is positioned 900 metres from NH-16 and SH-51 and it perfectly meets the growing demands of the consumer market and efficiently serves major manufacturing hubs in and around the city. With its advantageous placement, Hiranandani Industrial Parks offers businesses seamless access to transportation networks, enabling efficient distribution and supply chain management. It serves as a reliable partner for companies seeking reliable and convenient warehousing solutions in Chennai.

Conclusion

As the e-commerce industry in India continues to grow and mature, in-city warehouses like Hiranandani industrial parks have become essential for the success of businesses. The increase in online buying frequency, the rise of hyper-quick and hyperlocal delivery models, and the need for shorter delivery timelines have all contributed to the rising demand for in-city warehouses. Furthermore, the scarcity of in-city real estate highlights the importance of securing strategic locations for warehousing operations. By recognizing the role of in-city warehouses and embracing this trend, e-commerce businesses can position themselves for long-term success in the dynamic Indian market.