E-commerce companies in Australia would need to invest more in storage solutions, as online retail would account for a bigger share of total retail sales by 2021.
CBRE’s forecast showed that the industry would make up 11% of total retail transactions in the next three years, up from around 7% in 2016. The challenge, however, requires finding more warehouse space in major cities such as Melbourne and Sydney.
Limited warehouse space
While demand for online retail increases, there’s a constrained supply of warehouse space for e-commerce firms that operate in both cities. For instance, Colliers said that e-commerce had occupied more floor area in western Sydney.
The same thing occurs in Melbourne, where 50,000 square meters of industrial space has been rented out in the last two months. This only means that companies with current leases should maximize their rented space by using pallet stillages and cages. Aside from making storage more efficient, the technical side of the business will be another key priority for e-commerce firms this year.
Keeping up with competition
Amazon recently began operating in Australia, which means competition will become even tougher especially for startup companies. This doesn’t mean that you should just let the U.S. e-commerce giant take over. Some simple ways of keeping up with competition include optimizing your website for mobile and desktop use, as well as making it user-friendly.
Otherwise, users who have difficulty in searching for items would ruin the chances of a sale. Within just 10 seconds, potential clients would move on if they are unable to find what they want from your website.
Efficient storage for deliveries plays a big role in customer satisfaction for e-commerce companies while optimizing your website for better user experience will be the first step in gaining new orders. These are important if you want to remain relevant now that bigger players like Amazon have entered the industry.