Quickcommerce, also known as fast commerce or ultra-fast delivery, is revolutionizing the way we consume products and services. The challenge of this business model is to have products reach buyers in less than half an hour. For that to happen, products need to be close by. And for that, storage spaces must be strategically distributed throughout the city.
As it could not be otherwise, quickcommerce is growing at a rapid pace, creating a new demand for specific spaces tailored to this type of activity. To fulfill the promise of near-instant delivery, storage locations need to be in densely populated areas and easily accessible to transportation. This is an undeniable truth.
But to choose the right storage facility, other variables involved in the product purchase process must be considered. For example, not all consumers are the same, so not everyone has the same expectations regarding deliveries. It's also essential to account for product characteristics, as many items require cold storage. Additionally, the needs and capabilities of each seller must be weighed.
What consumers are looking for
While we might assume that one of the most important factors for a buyer is how quickly the product arrives, the cost often ends up being the deciding factor in the purchase.
Delivery flexibility also plays a role, as many people prefer to wait for their purchase at home, while many others, for various reasons, choose to pick it up from a nearby collection point. These two options can significantly impact the delivery cost.
The challenge for the logistics chain
Home delivery entails significant costs and operational challenges for retailers and their delivery partners, as transporting individual packages to a large number of final destinations can be costly, not to mention potential failed deliveries, which also add expenses. In contrast, delivering a higher volume of packages to a single destination (such as locations with lockers or other pick-up points) can be much more efficient: rather than delivering to multiple individual doors, the same number of packages can be delivered in a single trip to one location, reducing transportation and labor costs as well as the risk of failed deliveries.
Once companies decide on the delivery methods they will offer their customers, they must then determine the location and type of property their logistics chain requires.
What type of properties does quickcommerce need?
To operate efficiently, companies responsible for storing and distributing products may require a variety of properties:
Multi-small and medium enterprise (SME) parks
Urban warehouses
Cross-docking centers
Dark stores / service centers
Pick up points
eLockers
A trend, an opportunity
Based on a recent survey, Cushman & Wakefield identified over 2,000 properties with the potential to become ideal spaces for the logistics chain required by e-commerce trends.
Among these properties are those belonging to large factories that relocate their offices to corporate buildings, move their production to industrial parks, and outsource their logistics operations, vacating spaces that are ideal for sale and subsequent transformation into last-mile warehouses..
From our Market Research and Brokerage departments, we support property owners in discovering and maximizing the potential of their assets, and assist companies across various sectors in finding the ideal spaces for their operations. Get in touch with our specialists to learn more about available opportunities.
