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.
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:
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.
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.
To attract members like those listed above, a cooperative warehouse should offer a variety of amenities, including:
Cowarehouses can also coordinate group discounts on shipping, as well as access to other business services.
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:
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.
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.
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.