- European consumers are now spending more on their leisure and entertainment needs.
- European businessmen are investing billions of dollars in European expansion projects.
- European utilization of warehouses has expanded rapidly due to the increased demand for eCommerce companies in Europe.
European warehouse demand surges are taking place because of the rising popularity of e-commerce giants. Europe is no longer a continent just about supplies, but it is now a major consumer market with a population of over 447.7 million people. The European Union’s single market comprises 67 countries and a quarter of the world’s total population.
This European Union market is the world’s largest single marketplace. With China as its biggest trading partner, European warehouse demand for eCommerce giants, such as Amazon and Alibaba, is soaring.
“Throughout the course of 2020 we saw record take-up of warehouse space in the continent, led by the U.K.,” said Marcus de Minckwitz, director of the omnichannel group in London for Savills. “Drivers of that have been Amazon and then third-party logistics providers.”
European consumers are now spending more on their leisure and entertainment needs. European travel has become popular worldwide and European tourists are visiting their preferred destinations by the thousands. Travel is also a great way to get exposure to markets and businesses.
European businessmen are investing billions of dollars in European expansion projects. With more European companies being established every year, European demand for eCommerce giants, like Amazon and Alibaba, is growing too.
European warehouse demand for eCommerce companies like Alibaba is rising because European consumers are getting more accustomed to purchasing goods on the internet. European shoppers no longer want to drive across continents and spend time and money traveling from one country to another to buy products.
They prefer to buy products online from European-based companies that have European headquarters. European buyers are willing to pay more for European goods than any other type of eCommerce company. ECommerce companies that have a European presence can earn more profit because of the demand from European customers.
“A lot of people are buying the Chinese products in Europe,” said Suresh Dalai, senior director at consulting firm Alvarez & Marsal, which focuses on retail operations in Asia.
“There is a lot of demand to go around. I don’t think (new Chinese players) really impacts Alibaba that much,” Dalai said. “I think it helps because it just spurs additional investment in warehouses and technology, and more and more consumers get used to shopping cross-border and shopping on Chinese-created websites.”
European utilization of warehouses has expanded rapidly due to the increased demand for eCommerce companies in Europe. Warehouse utilization rates in Europe are at an all-time high.
Many European warehouse owners have to add extra storage space because of this expanding demand. Warehouse rents are very high in Europe and most warehouse owners cannot afford to expand their warehousing or create additional storage space.
The main problem is finding European warehouse space that is suitable for eCommerce. Some warehouse owners have bought and developed new warehouses, but these warehouses are usually not fit for eCommerce.
European warehouse space is difficult to find, which is one of the reasons why many warehouse owners in Europe are moving and setting up their own eCommerce businesses. Many are setting up retail fulfillment centers and fulfillment hubs in Europe. These centers store the products that eCommerce retailers sell, and ship orders to the customers via electronic mail.
European warehouses are in great demand and offer a lot of advantages over traditional warehouses. European warehouses offer more space and are generally less expensive than warehouses in the United States or Asia. European warehouse operators also provide a better selection of goods.
In the past, American and Asian warehouses dominated the global eCommerce industry. With the growth of European demand, European warehouse operators are taking over the world of eCommerce. European warehouse operators can provide a better range of products and can provide rapid delivery of the products to the customer.
European warehouse demand has created a perfect opportunity for European warehouse owners to make some easy profits. However, it’s important to realize that warehouses in Europe are a very competitive business.
There are many warehouse operators from European countries that are giving away their warehouses with a view to making a profit. As the demand for eCommerce products grows, there will be greater competition among European warehouse operators.
The warehouse boom in Europe has created a lot of job opportunities in Europe. There is a high employment rate in Europe as well as a growth in the European market. If you’re considering starting an e-commerce business then you should consider warehouse operation.
European warehouse owners can help you achieve your business goals. European warehouse operators can give you a better storage and transportation service while at the same time offering a better service. European warehouse demand has created a good opportunity for European warehouse owners and operators.