E-commerce Growth Sparks Increasing Demand for Warehousing and Logistics Support

E-commerce supply and demand

Online retail sales in the U.S. are predicted to rise 15% this year, totaling more than $700B and surpassing $1 trillion by 2024, according to eMarketer. This growth in E-commerce is creating a greater demand for support in the logistics and warehousing realms. To deliver products on time, keeping customers happy from coast to coast, online merchants require centralized inventory to respond to dynamic supply and demand needs.

More online purchases require more distribution space

According to Prognosis, a leader in logistics real estate solutions, e-commerce sales require three times more warehousing and storage space than traditional brick-and-mortar sales. For every $1B in e-commerce sales, online retailers require 1.2 million sq. ft. of distribution space. As e-commerce sales grew dramatically in 2020, so too has the demand for warehousing space and logistics support.

In 2020, companies found innovative ways to ramp-up e-commerce sales in the wake of COVID-19 shutdowns, including temporary storage in areas previously used for in-person shopping. Amazon, for example, is transitioning dead malls and empty department stores into e-commerce fulfillment centers. Retail giants Target and Walmart used their stores as distribution hubs, reducing last-mile shipping requirements by adding to their logistics chain nationwide.

“Placing our stores at the center of modern network design to deliver an unmatched combination of convenient fulfillment options,” said Brian Cornell, CEO of Target. In addition, “mini warehouses,” designed to fit comfortably within cities and behind retail storefronts, are now supporting areas where demand and consumer populations are high. This shortens last-mile delivery times and reducing shipping costs.

Legacy Logistics offers 1 million square feet of flexible warehousing support

Legacy Logistics has also seen a huge increase in the demand for warehousing-related logistics services this year. We’ve been working closely with large and small retailers increasing e-commerce sales. We also provide warehousing and fulfillment support to Amazon merchants across the country.

Legacy has more than one million square feet of flexible commercial storage space in the U.S. We offer flexible short and long-term rental agreements, allowing businesses to grow along with customer demands.  Combined with our diverse storage, shipping, and logistics services, our wrap-around logistics support has helped companies grow this year.

Part of our wealth of industry experience includes hands-on work with e-commerce platforms, including Shopify and WooCommerce. We understand the specific metrics and reporting requirements needed and we have experience responding to changing customer needs and fulfilling orders quickly.

“The key to making change work is to anticipate at all times and adapt when needed,” says Ernie Magalotti, President of Legacy Logistics. “In these dynamic times for our industry, Legacy Logistics is here to support retailers and merchants growing e-commerce retail sales.”