According to Harvard Business Review, 80 percent of consumers in the U.S. are changing the way they shop post-pandemic based on a survey of the EY Future Consumer Index conducted by thousands of consumers. During the pandemic, consumers realized that they could easily access goods online from any geographical location with internet connectivity, and a significant shift in consumer behavior occurred.
As a result, companies have taken note of this shift. And with many businesses solely operating online, it’s an opportunity for self-storage companies to swoop right in. Self-storage companies can target e-commerce businesses that don’t have brick-and-mortar locations and may not have the physical space to operate their business, especially those with fluctuating inventory levels.
The goal of this article is to highlight the growth of businesses in the e-commerce space, the challenges that they face, and how self-storage companies can target these businesses to unlock new opportunities for collaboration.
E-commerce is when companies and individuals conduct business online over the internet by buying and selling goods. Through e-commerce, businesses and individuals can reach the masses and provide consumers the opportunity to purchase products and services without visiting an actual brick-and-mortar store.
The e-commerce world didn’t just benefit and provide an alternate channel for major retailers but for smaller entrepreneurs as well. For example, digital marketplaces like Etsy or Facebook Marketplace serve as a hub for buyers and sellers to buy and sell goods and services.
While operating an e-commerce business certainly offers its advantages over a brick-and-mortar one, it’s important to know that managing a solely digital-based business comes with its fair share of challenges. These challenges can range from fulfillment logistics to inventory management.
Specifically, the lack of storage space for inventory has become a significant issue businesses face due to the rise of e-commerce. This makes it imperative for businesses to find solutions to manage their inventory effectively.
The question that stands for all growing e-commerce businesses is this: What are the solutions for inventory challenges? This is where self-storage facilities can come in and bridge the gap, providing a solution for e-commerce businesses. Self-storage allows businesses to leverage rental space at a more convenient or cheaper cost than traditional warehouse spaces, all while operating at a high capacity and continuing its growth efforts.
Self-storage provides e-commerce businesses inventory space, especially since demand levels can fluctuate frequently, whether that’s due to seasonality, promotional campaigns, or purchasing higher quantities to achieve economies of scale. This can be ideal for e-commerce businesses to have extra inventory stored to ensure they can keep up with demand and meet orders at all times. On the other hand, it can also prevent your space from being overcrowded during the off-season or times when demand might not be as high.
Self-storage facilities offer e-commerce businesses the opportunity to scale. This can be an alternative to operating a business out of one’s garage or basement without going the commercial warehouse route. Renting a self-storage unit(s) can be beneficial for smaller or medium-sized e-commerce businesses, especially because storage unit(s) don’t have fixed rental terms. It’s easy for e-commerce businesses to add additional units and move out of units as their business needs grow and they manage inventory demands.
Choosing to store belongings in a self-storage facility adds a layer of security for e-commerce businesses’ inventory and other belongings. This is especially true if entrepreneurs choose to store with self-storage companies like XYZ Storage, a premium Canadian storage company, where they offer top-notch security to protect their renters’ belongings.
The power e-commerce has on the economy is significant and the growth is expected to grow from $5.8 trillion in 2023 to $6.3 trillion in 2024 (Snyder, 2024). On top of this, the e-commerce market is expected to be over $7.9 trillion by 2027, which showcases that the demand and growth for e-commerce will likely not be slowing down. This also signifies to industries that working alongside e-commerce businesses can be a lucrative opportunity to form an active partnership.
Specifically, self-storage companies have an opportunity to be of assistance given the significant challenge e-commerce businesses can face with having a lack of inventory space, especially during peak months. So, what can self-storage facilities do to help? Self-storage facilities can offer tailored solutions to address the unique challenges faced by e-commerce businesses by providing flexible rental options, scalable storage capacity, and additional amenities.
Take note of Canada's XYZ Storage, which has actively taken steps to be of service to businesses in the communities where the company operates. This commitment is evident in the company’s storage solutions not only for everyday individuals but businesses as well.
This Canadian storage company offers flexible and cost-effective storage solutions across all five of its facilities, which allows businesses to grow and scale in the future with them. Here are the ways that XYZ Storage caters to e-commerce businesses:
Self-storage companies can benefit from following the lead of XYZ Storage by providing rental services for businesses, specifically ones that solely operate in the digital space. Doing so will allow self-storage companies to tap into a lucrative market that has constantly growing and evolving needs.
In conclusion, self-storage companies that follow suit and align their services with the specific requirements of e-commerce entrepreneurs can establish themselves as invaluable partners in the e-commerce space while unlocking new opportunities for collaboration and growth.
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Megan Lee is a seasoned marketing professional with over five years of experience writing about the self-storage industry and managing content at XYZ Storage.