Warehousing and logistics businesses today face rising real estate and operating costs. At the same time, many small businesses need only a portion of a warehouse to store their goods. This has led to a new business model called cooperative warehousing that can help both warehouse owners and small businesses thrive.
What is cooperative warehousing?
Cooperative warehousing operates much like a coworking space. A warehouse owner divides their facility into small, private units that members can rent on flexible terms. Members share access to amenities like material handling equipment, shipping/receiving docks, and staging areas.
The growth of cooperative or cowarehousing is notable:
- Coworking and flexible office space is growing rapidly, with the number of locations globally expected to reach over 26,000 by 2022, up from around 19,000 in 2019 (Statista). Demand for shared space models is on the rise.
- 37% of warehouse space demand is expected to come from third-party logistics firms by 2025, up from 33% in 2021 (Commercial Cafe). This shows more businesses are relying on specialized third-parties for warehousing.
- The on-demand warehousing market is projected to grow at a CAGR of 25% from 2020 to 2027 as businesses desire more flexibility (Grand View Research). On-demand warehousing follows a similar cooperative model.
- 71% of small businesses want on-demand access to warehouse space to deal with fluctuations in inventory (Containers on Demand). This highlights the appeal of cooperative warehousing for small businesses.
- A survey found that 69% of logistics companies are planning to increase use of shared warehouse spaces over the next 2 years (PeerSpace). This indicates growing adoption of the cooperative model.
With small and mid-sized businesses needing more flexibility in warehousing, the cooperative model that shares space and resources is primed for strong growth in the years ahead. Cooperative warehousing enables better utilization of warehouse capacity while giving businesses an affordable solution to store inventory.
The cooperative model reduces costs through shared infrastructure and resources. Members get affordable warehousing without large overhead expenses. Warehouse owners generate steady revenue from unused space.
Who is cooperative warehousing for?
Cooperative warehousing serves startups and small businesses that need occasional warehouse space. It provides flexibility that leasing an entire warehouse does not. So, which small businesses can truly benefit from cowarehousing? Some examples include:
E-commerce startups
With the rise of platforms like Shopify, WooCommerce, and Etsy, a many others, a mass of small-scale e-commerce businesses have surfaced. These businesses need efficient and flexible storage solutions, particularly during their growth phase, making them perfect candidates for cowarehousing.
Local artisans and craftmakers
Local artisans often produce in small batches, requiring storage for raw materials and finished products. Offering them cowarehousing ensures they don’t have to compromise on their craft due to space constraints. (Explore your local makerspace community to connect with folks who already understand the value of shared resources.)
Pop-up retailers
These businesses are here today, somewhere else tomorrow. They need temporary storage solutions between their pop-up events. Cowarehousing offers the flexibility they crave.
Event and wedding planners
With an assortment of props, furniture, and decor, event planners could greatly benefit from shared warehousing solutions, especially those who might not have enough resources for a dedicated warehouse.
Import/export small scale dealers:
These businesses, which often operate seasonally or based on market trends, need flexible storage options. Long-term leases are often not feasible for them, making cowarehousing a perfect fit.
Organic farmers and small-scale food producers
These businesses often have perishable products that need storage solutions before reaching the market. With a cowarehousing solution that offers cold storage, they can ensure their produce stays fresh.
Local distributors
Whether it's a beverage distributor or a local publisher, they need places to hold their stock. Rather than investing in a dedicated space, these businesses can greatly benefit from the flexibility of cowarehousing.
Key amenities and services to offer
To attract members like those listed above, a cooperative warehouse should offer a variety of amenities, including:
- Private storage units with 24/7 access
- Shared access to material handling equipment
- Shipping/receiving docks
- Pick and pack fulfillment services
- Security features like video monitoring
- Office spaces for rent
- Conference rooms and lounge areas
- Virtual and physical mail services
Cowarehouses can also coordinate group discounts on shipping, as well as access to other business services.
How to market a cooperative warehousing business
A targeted marketing strategy should focus on networking with and reaching prospective customers through multiple channels. Build local community connections and establish your business as a thought leader in small business warehousing.
To get the word out, focus on local outreach to potential members:
- Attend trade shows and events to network with prospective customers
- Build relationships with local business associations and chambers of commerce
- Run social media ads targeted to your geographic area
- Partner with business incubators and startup accelerators
- Offer tours and open house events at your facility
Cowarehousing businesses will definitely need to focus on SEO and content marketing around topics that attract target customers. Useful articles and blogs will position you as an expert in small business warehousing. Here are some helpful keywords that a cooperative warehousing business should use in content:
- Coworking warehouse
- On-demand warehouse
- Flexible warehouse
- Shared warehouse
- Warehouse coworking
- Cowarehousing
- Fractional warehousing
- Warehouse rental
- Short-term warehouse lease
- Warehouse space for rent
- Warehouse rental by the month
- Small business warehouse
- Warehouse for ecommerce
- Warehouse for online sellers
- Warehouse for startups
- Pop up warehouse space
- Warehouse incubator
- Warehouse accelerator
- Warehouse community
- Warehouse membership
- Pay as you go warehouse space
- Warehouse space sharing
- Warehouse space marketplace
- Warehouse space on-demand
- Micro-warehousing
- Warehouse subletting
- Warehouse hot desking
- Warehouse space as a service
Focusing content around these relevant keyword phrases will help attract searches from small businesses and entrepreneurs looking for flexible, affordable warehouse space.
What is the opportunity in cowarehousing?
For warehousing business owners, the value proposition is clear. By tapping into the needs of these small businesses, you can:
Increase revenue streams: With multiple businesses sharing a space, you can optimize rental income, ensuring there's little to no wastage of space.
Boost occupancy rates: Rather than waiting for a single large tenant, you can fill spaces quicker with multiple smaller tenants.
Build a community: Just as coworking spaces thrive on community dynamics, a cowarehousing solution can foster collaborations and partnerships among tenants, making your facility more than just a storage space.
Space management software for cooperative warehousing
To run a streamlined and efficient cowarehousing business, you’ll need a software platform that is designed around community first. This is a business model that requires software designed for sharing economies. You need tools to easily list and rent storage units, onboard members, collect payments, coordinate amenities, and foster a real community.
Coworks space management software is purpose-built for this kind of business. It handles everything from invoicing to asset booking, with a dedicated mobile app for members. Powerful community features like an event feed and member directory encourage collaboration.