Tiny warehouses being built for last-minute delivery

It is said that the UK always follows the trends that appear in the US first, so is it possible that we will soon see a trend in small local warehouses to satisfy last-minute delivery demand in the online shopping world?

USA e-commerce firm Bond is reportedly looking for underutilised commercial properties in city areas to convert to tiny warehouses to enable faster last-minute deliveries.

Large online retailers such as Amazon are known for their gigantic warehouses. Amazon pioneered next day delivery, but now many consumers want the same day or even same hour deliveries. The only way this can be achieved is to have a number of smaller warehouses in or close to major cities where the most in-demand products are stocked.

Bond is an e-commerce specialist that delivers products for brands Their mini warehouses are between 600 and 1,000 square feet, located in dense city centres. They are on the ground floor with easy access for bikes and electric trikes that deliver the goods. Online retailers and brands pay them to store, pick and deliver goods. Bond has raised $15 million to develop its technology infrastructure and the apps that are used to order items.

In the UK, Amazon already operates smaller warehouses near cities so that goods can be delivered in an hour or two. Takeaway food deliveries are available in most towns and cities, The Bond business model enables non-food items to be ordered as easily and delivered as quickly as takeaway meals.

If Bond is successful in the USA, it may not be long before tiny warehouses are created in British cities. A beneficiary of this trend will be the warehouse equipment manufacturer who supplies the racks, warehouse trolleys and other equipment needed for a well organised storage area.

Posted by Katrina
2nd March 2020
Retail & Warehousing

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