How eCommerce is Changing the Future of Warehouses?

eCommerce has significantly redefined the way people shop today. Many of them who never shopped online ever before now appreciate its convenience and benefits in their daily lives. Those who occasionally buy online now do most of their shopping from home. 

Since eCommerce stores function differently as compared to physical storefronts, warehouses that support online businesses also need to adapt with time. 

In fact, various aspects of the industry have been impacted by eCommerce development services. Let’s explore how the warehousing industry is ever-changing to meet the demands of eCommerce.

But first things first, let’s take a look at what eCommerce warehousing is!

What is eCommerce Warehousing?

eCommerce warehousing involves storing goods for online sales, while eCommerce warehouse management means overseeing all operations in such warehouses. This includes:

• Supervising warehouse staff.
• Tracking equipment and inventory (both raw materials and finished goods).
• Monitoring every step from receiving stock to shipping it out.
• Predicting customer demand to avoid stocking too much or running out.
• Ensuring safety measures to protect employees, inventory, and equipment from accidents

How has eCommerce Transformed the Warehousing Industry?

1. Advanced Software Systems

Warehouse technology has made huge strides, almost matching the progress in eCommerce development. There are many inventory management systems available, from simple barcoding to advanced systems that provide real-time updates and connect everything from supply to shipment in one place.

Many warehouse workers now use tablets and other portable devices to link the physical and digital worlds. Supervisors can access inventory data in real-time whenever they log in. Some custom software development solutions can even predict sales and analyze data patterns to make smart conclusions.

2. Revolutionary Storage and Shipping Solutions

People are ordering more things online and expect fast shipping because of strong competition among companies. This means warehouses need to store a wider variety of products, which makes things more complicated. To handle this, many companies have created new systems to make storing and shipping items easier.

For example, Amazon uses a “chaotic” storage system where items are placed on any available shelf to save time. This setup may look messy, but it works well with the help of technology to keep track of everything. Today, this chaotic system is seen as one of the best and most efficient ways to manage warehouse inventory.

3. Round-the-clock Operations

One major impact of eCommerce on warehouses is the need for round-the-clock operations. With the market always open and the demand for next-day or same-day deliveries, warehouses now need to process orders overnight.

While larger distribution centers in industrial areas have already adopted this, it can be challenging for warehouses in residential areas. Continuous operations can disturb the neighborhood and cause congestion and pollution.

4. Accelerated Employee Training Programs

Warehouses are also improving their training programs to help new employees get up to speed quickly and keep things running smoothly. Today, warehouses are more efficient because of better technology and smart storage methods. However, to maintain this efficiency, workers need to follow the right procedures.

New employees need to learn quickly so they don’t disrupt the established best practices in the warehouse.

5. Enhanced Tracking Capabilities

Everything in warehouses is now easier to track because of new technology. Almost every product that comes in, moves around or goes out is tracked instantly with a single scan or button press. Anyone in the organization can find out exactly where a specific product is at any time.

This better tracking helps prevent product loss, keeps warehouses running efficiently, and allows for more information to be shared with partners, suppliers, and customers.

6. Strengthened Supply Chain Relationships

Suppliers keep warehouses stocked with the products they need, so having good relationships with suppliers is very important. Today’s technology makes it easier to run things smoothly. If the technology is compatible, warehouses can instantly update suppliers about their needs and order statuses, and suppliers can do the same.

This quick and open communication makes the process smoother, reduces errors, and requires less human effort.

Also read: Why Blockchain Development is a Game-Changer for Supply Chain Management?

7. Innovative Material-handling Equipment

Floor space in warehouses is very valuable, and using it efficiently is key for productivity. Warehouses often have multiple levels, so moving products between floors safely and efficiently is important. Options include elevators, spiral conveyors, or manual labor, but the best choice is usually a vertical reciprocating conveyor. VRCs are low-maintenance, cost-effective, and take up little space, making them ideal for efficient warehouses.

How Does eCommerce Development Impact the Future of Warehousing?

eCommerce development will not only influence the availability of smaller spaces but also change how businesses design and utilize warehouse spaces.

1. Design Warehouses for New Technologies

Modern warehouses are increasingly reliant on technology to improve efficiency in storing, retrieving, and shipping products. They require precise organization so employees can quickly locate items and determine when to reorder them. A warehouse management system connected to scanners tracks inventory accurately. To ensure real-time updates, warehouses need WiFi throughout for scanners to connect to the WMS. Some facilities may also need more electrical outlets for charging tools and electronics.

The goal of modern warehouse design is to store more products in less space. For eCommerce businesses, knowing inventory levels instantly is crucial to minimize unsold stock and costs while meeting customer orders. This balance is achieved through advanced warehousing technology and facilities that support these innovations.

2. Warehouse Automation

eCommerce warehouses need space to automate various functions like heating and cooling systems on timers, automated ordering systems, conveyor belts, and storage systems that automatically retrieve items. These technologies help businesses operate efficiently.

Smaller eCommerce businesses may not afford extensive automation but can benefit from simple upgrades like conveyor belts to reduce walking or motion-activated lights to save energy. These improvements provide a competitive edge and support future growth.

Automation in basic tasks saves time, reduces errors, and eases strain on warehouse employees, making them happier and more productive. This allows small businesses to focus on meeting customer needs and expanding their operations.

You may also like to read: E-commerce development solutions: Grow in business in 2024

3. Strategic Warehouse Locations for Faster Delivery

According to Statista, 57% of online shoppers prefer fast shipping, while free shipping is preferred by 69.2% of shoppers. To meet this demand, eCommerce sellers should consider upgrading from fast to expedited shipping options, ensuring even quicker deliveries. By strategically placing warehouses closer to customers, sellers can reduce shipping times, offer expedited options, and enhance the overall shopping experience.

4. Adapting to Direct-to-Consumer Shipping Demands

The growth of online shopping is making logistics more complicated. To simplify things, many warehouses hire third-party logistics experts to handle their logistics operations. This can save money and make it easier to track how things are going. Also, Supply Chain as a Service is becoming more common.

5. Leveraging 3PL and SCaaS for Efficient Logistics

In the past, warehouses mainly shipped large quantities of items to stores for sale. Now, people buy directly from their phones and tablets instead of going to stores.

For warehouse managers, this shift means it’s harder to predict what people will buy. Warehouses need to stock a wider variety of items. Employees and robots in the warehouse now have to pick and pack individual items instead of handling large pallets of just one product. This requires workers to be flexible and for inventory to be easy to reach.

Latest Technology and Automation Tools for Future Warehousing

1. Internet of Things 

The victorious trident of IoT, Bots, and Mobile Apps are touched almost every industry vertical in transforming wats. The Internet of Things will connect all warehouse processes and products, improving coordination and resource use. This will generate lots of data that must be managed and secured. Future warehouse management systems will ensure everything works smoothly, like an orchestra leader. Data security will be crucial, boosting the use of secure networks like 5G.

2. Big Data and Predictive Analytics

Big data refers to large and complex information that’s hard to handle with usual methods. It’s collected from many sources in different formats, boosted by technologies like IoT. Advanced computing helps analyze this data for better processes and predictions, leading to smarter decisions and more profit. For it to be useful, data must be easy to understand and act upon, ideally shown in real-time on devices like phones or eventually on hands-free gadgets like smart glasses.

3. Blockchain

Blockchain is a digital record of transactions that’s hard to change once recorded. It uses computer networks to verify and time-stamp each transaction, forming a chain of data. This transparency can benefit supply chains by tracking product origins and sustainability claims accurately. Originally for cryptocurrencies, the potential of blockchain development solutions extends to changing how businesses work, though widespread use might take decades.

The Future of Warehousing

The role of warehousing has changed a lot since eCommerce development services became popular, but what does the future look like? Better technology will keep on launching. Barcodes might be replaced with simpler scanning solutions to link physical products with digital information. Workers will become more mobile with wearable technology and augmented reality programs.

You can also expect more specialized sections in warehouses. They might become smaller and focus on efficient storage and delivery. Inventory tracking will become even more precise, with detailed location information.

Final Words

It is expected that, by 2024, eCommerce will increase by 40%. Warehouses should start evolving with changing shopping trends and new expectations. Adapting to these changes and following the trends requires partnering with an eCommerce development company that truly understands the challenges of modern warehousing under the influence of eCommerce. This partnership is essential for building a successful business.

If you’re already searching for such a company, DianApps can be your one-stop solution. Being an avid provider of eCommerce Software Development Solutions, we can help you attract more customers and convert them into potential leads with our varied solutions such as eCommerce consulting, retail software, mobility solutions, custom app integration, platform migration, and overall digital transformation of your business.