Without enough goods to fill it, a warehouse is not fulfilling its duty and may actually be costing you. If you’re reading this thinking it sounds familiar, you may be interested to know that there is a solution – not only to make up these costs, but to actually make you some profit on your empty space.
It may sound like a pipe dream, but with on-demand warehousing – warehouse owners can rent out their excess space and business owners can utilise this space for all their storage needs. Win, win.
2020 Saw an Unprecedented Shift in Shopping Habits
2020 saw a shift in shopping habits – with some industries peaking and others declining when lockdowns were imposed. This shift in behaviour meant that the usual sales forecasting for companies was compromised.
The Office for National Statistics reported that in September 2020 whilst in store sales were down 10%, compared to pre-pandemic levels, online sales were up by nearly half.
Since this ONS report in September 2020, there have been multiple national lockdowns, and a range of local restrictions that have impacted in-store shopping even more – with the collapse of retail giants Debenhams and Topshop emphasising this shift in behaviour.
An article by the Retail Gazette highlighted that 44% of shoppers say they see permanent changes to the way they shop following Covid-19. Whilst some may rush back to the high streets for a taste of pre-pandemic life, the majority will continue to shop hassle free from the comfort of their own home.
What Excess Capacity Means for Warehouses?
As a warehouse owner, if you’re reading the buzz around the shift to e-commerce and wondering why your warehouse remains empty it may be time to consider different options.
eCommerce sales are up nearly 35% nationwide. With this shift in consumer behaviour bringing new business to online retailers, you would expect your warehouse to be bustling.
Excess capacity can have a negative impact on a number of things – it can reduce your profit margins and cost you unnecessary cash. The most important thing to remember, is that it doesn’t have to remain empty. There are plenty of ways to utilize your excess capacity to your benefit.
Reach Your Warehouses Potential
As a warehouse owner you may be sceptical to rent your space out to other businesses. But, without filling the space you have, your warehouse is not reaching its full potential. On-demand warehousing can help you fill your space quickly and easily. You still own it, and should you need it you can take it back so there is nothing to lose – and everything to gain.
Benefits of On-Demand Warehousing
There are many benefits to on-demand warehousing for both business owners looking for empty space and warehouse owners looking to offload some of their excess capacity.
As you may have gathered at this point – profit is the key when it comes to empty warehouse space. It is as simple as having empty space means you are losing out. Renting out your excess space brings you in a flow of cash that you otherwise would not have – and if you aren’t using the space, you don’t need to keep it.
At the end of the day, you still own your warehouse space. If you need more space, you can choose to no longer rent your warehouse, or only rent a smaller space. That is the beauty of flexible warehousing. Similarly, you may want to place stock elsewhere in the world or country and you could take advantage of on-demand warehousing to do this.
Fill Space Quick and Easy
As part of the Trident warehouse network, you will have access to our advanced technology platform – meaning not only can you maximise profits by renting out excess space, but you can also optimise and automate your operations using our state-of-the-art WMS.
To answer our initial question – a warehouse without enough goods is not reaching its potential. If a warehouse has excess capacity, it is losing money where it could be bringing money in. There are plenty of ways to use empty warehouse space – Trident’s end-to-end logistics solution not only fills your empty space but also gives you the opportunity to access a network of global brands and businesses. The opportunities are endless.