Covid-19 has brought about a change in how consumers shop. There has been a dramatic move to buying online. Given the convenience e-commerce offers and the fear of contracting Covid-19 in public spaces, people may not venture out for shopping at malls once the lockdown ends. Even malls may limit entry of people to maintain social distancing. Thus, this lockdown will bring about a behavioural change and increase the acceptability of buying groceries and daily essentials online.
Retailers are working to tap into the 400 million connected internet users in Africa, a market second only to China. According to McKinsey, African e-commerce has projected annual sales of $75 billion by 2025. Global analysts maintain that e-commerce sales growth will continue even in a tough economy, driving a need for logistics fulfilment and warehousing to serve the supply chain.
E-commerce has created demand for a new type of warehouse with different dimensions, locations and capabilities. Ecommerce warehousing is the storage of physical goods before they are sold online. Warehousing includes safely and securely storing products, as well as tracking where items are located, when they arrived, how long they’ve been in stock, and the quantity on hand at any given time.
There are different types of warehouses available and the one you choose for your business depends largely on what is affordable. Amazon has set the standard in terms of delivery times which most consumers now expect. Amazon makes use of a smart warehouse. These warehouses take the efficiency of a distribution centre to another level. They use artificial intelligence to streamline the entire eCommerce warehouse process and automate as much of it as possible. This can be done by using drones and software for eCommerce packaging, shipping, and storing. One-third of warehouses are already using smart technology, or planning to in the near future.
References:
AFRICA’S LOGISTICS AND WAREHOUSING SECTOR TO WEATHER PANDEMIC STORM
https://propertywheel.co.za/2020/06/africas-logistics-and-warehousing-sector-to-weather-pandemic-
Emerging trends in warehousing segment post Covid-19 lockdown
https://www.financialexpress.com/money/emerging-trends-in-warehousing-segment-post-covid-19-lockdown/1974888/
eCommerce warehousing: everything you need to know!
https://blog.edesk.com/resources/ecommerce-warehousing/