Over the last couple of decades, the logistics industry has seen many changes. One thing that possibly has had the biggest impact is the fast-growing and fiercely competitive e-commerce landscape. As a result, the modern ecommerce warehouse has had to evolve quickly to the changing demands, with spaces transforming into multi-functional platforms that can change and quickly respond as orders ebb and flow.

In our blog, we examine how ecommerce businesses are evolving and how your choice of racking, warehouse design, and storage equipment can give you a competitive edge.

Why has ecommerce changed?

The popularity of ecommerce is not a new phenomenon. Ever since the first online purchase over a couple of decades ago, it has been growing in momentum. However, it wasn’t until the pandemic that the online platform exploded. So much so, it’s reshaped the world of retail businesses and this year alone, it’s expected that nearly 85% of the UK population will shop online.

Adding to the success of ecommerce businesses has been the recent launch into social media sales via platforms like TikTok Shop where consumers can buy directly from a post or live stream. In this arena, trend shifts are rapid, and it only takes one viral second for a product to blow up overnight.

How has ecommerce impacted the logistics industry?

With increasing demands, distribution centres and warehouse managers and business owners have inevitably had to step up. As online shopping has become more accessible, this has also led to an increase in customer expectations. Shoppers have moved on from the traditional three-working-day model, now demanding next-day and in some cases, even same-day delivery. Orders have to be exact to meet expectations and there has to be a seamless system for processing returns.

For any ecommerce warehouse, flawless order handling and meeting rapidly changing stock profiles is no longer a ‘nice-to-have’; it’s essential for protecting your company’s reputation and uphold customer satisfaction and keep them coming back. The impact can be severe if things do go wrong or there are delays in the supply chain. Customers won’t hold back when they receive late or incorrect deliveries, damaged goods, or face out-of-stock items. One bad social media post can do serious damage, and if there’s one thing today’s customers aren’t, it’s forgiving.

An ecommerce warehouse that meets customer demands

To meet demand, you need an efficient e-commerce warehouse layout. This means the design of your racking needs to play a pivotal role in getting the stock from A to B in the most efficient manner with minimal sticking points.

When we visit a warehouse the first thing we examine is the type of ecommerce warehouse it is and how the design of your racking and shelving could improve your overall business performance:

• How many pallets are passing through the warehouse?
• Where do they enter and leave the warehouse?
• How does the types of product seamlessly move from the arrival bay to the shelf and then the packing area?
• How does it then leave the warehouse?

We can then design a bespoke storage equipment tailored for an ecommerce environment that allows your processes to run as smoothly as possible. This means no sticking points that cause delays.

The right racking for your ecommerce warehouse

While many ecommerce warehouses share similar footprints, each operations is unique, and there’s no one-size-fits-all ideal solution.

Factors like headroom, floor space, load-bearing capacity, stock turnover, and product shelf life must all be considered. Luckily, there are numerous options to meet almost any need—it’s about finding the best fit for your facility.

Here are some of the options:

Wide-aisle racking

This is the most commonly available type of racking. With wide aisle racking, the aisles are wide enough for standard forklift trucks and manual pickers to access stock and manoeuvre between the bays.

Very narrow aisle (VNA) pallet racking:

If you need to maximise the storage space on offer without moving to a bigger facility, you could install Narrow Aisle Racking (NAR) or Very Narrow Aisle (VNA) racking. Both structures minimise the width between the bays to create narrower aisles. With NAR it is possible to use standard forklift trucks although greater care is needed during picking. VAR racking does require specialised forklifts and guidance systems for stock picking. These structures are typically suitable if you have the ceiling height to go upwards.

Double deep racking

This type of racking is ideal for non-perishable stock. The structure consists of two runs of racking sitting back-to-back, typically in a cube shape. Stock is loaded and unloaded from one face with pallets accessed like standard racking. The advantage of double-deep structures is their ability to store two pallets in a racking’s depth while minimising the amount of allocated floor.

Drive-through and drive-in racking:

These structures are alike in appearance but different in the flow of goods. Drive-in racking works on a last-in, first-out (LIFO) system, replacing aisles with deep storage lanes to maximise space within a cubic layout. Each lane is allocated a single SKU with stock accessed and loaded from the front of the structure.

Drive-through racking follows a first-in, first-out (FIFO) principle, with stock loaded from the front and unloaded from the back. Like drive-in racking, it offers high-density storage but with access at both ends.

Push-back racking and pallet live racking:

Pushback racking operates on a First In Last Out (FILO) basis.  Pallets are loaded and unloaded from the front with these structures holding up to 10 pallets deep. The stock sits on a gravity roll track with pallets pushed to the back when another is loaded. This racking enables you to store several SKUs without having to move large quantities to gain access. Pallet live racking works on a First In First Out (FIFO) system. Again, pallets sit in lanes, but they are loaded on the replenishment side and collected from the opposite side. Pallets are held in place by a series of inbuilt brake rollers to control the flow of items.

Multi-tier pallet racking:

If you want to maximise the usable warehouse space, you could consider multi-tier racking. This structure configures warehouse shelves between usable walkways on multiple racking levels. Teams can use the different levels for traditional storage and to create separate picking and packing zones. This structure is perfect for hand-picking procedures and is an ideal way to utilise headroom and take unnecessary strain off your footprint.

Optimising ecommerce warehouse racking

No doesn’t matter which of the wide variety of racking you choose for your ecommerce warehouse, getting the most out of the structure depends largely on how you optimise the shelf space. To make stock easier for employees to locate, pick, and pack, incorporate the right accessories. Take pick bins, for instance, they’re great for organising smaller items and keeping fast-moving stock within easy reach. Alternatively, labelling such as barcodes, QR codes, colour coding and directional labels can help employees find items faster and increase pick accuracy when switching up stock.

Choose accessories that maximise your processes and day-to-day functions become quicker and employees stay productive.

Automating the Process

We’re living in the age of Industry 4.0, and with the rise of e-commerce business, automation has found its way into more and more warehouses. These intuitive and cost-saving systems can speed up processes, reduce reliance on employees, operate 24/7 shifts and minimise errors. There are plenty of advanced technologies available for the smart warehouse; from ASRS systems for tracking real time data to conveyor belts, Warehouse Management Software (WMS) and autonomous mobile robots. Get the ideal automated system in place and it should transform your warehouse into a reactive space that meets changing ecommerce demands.

Big names like Walmart are embracing automation into their fulfilment centres to compete against e-commerce leaders like Amazon, who already deploy 750,000 bots working alongside its staff.

However, there are key issues to be aware of. Racking often needs to work hand in hand with robotics, and its design plays a key role in rapid, accurate picking rates. You need to assess whether the initial outlay will provide enough benefits to make a decent Return On Investment (ROI). Plan how the structure will fit into your warehouse, what the space requirements are and whether it works seamlessly with your racking.

Preventing damaging downtime in your ecommerce warehouse

One last consideration in running an ecommerce warehouse is what happens when you lose productivity. Employees often take severely damaged racking out of service for repairs, costing time as they remove stock and potentially reducing storage capacity or forcing relocation within the warehouse. Not ideal if your warehouse runs continuous ecommerce operations.

While racking damage can’t be completely avoided, proper maintenance and training can greatly reduce downtime. Train employees to work safely and report damage, and enrol a team member in our Racking and Safety Awareness programme to become a PRRS. They’ll conduct regular inspections, keep records, and ensure compliance with Health and Safety Executive (HSE) requirements.

About Teepee

If your ecommerce warehouse needs some optimising why not get in touch? With over 40 years of experience, we’ve been designing racking systems that truly support the day-to-day running of warehousing operations. Systems that unlock dead zones, boost daily warehouse operations, increase capacity within and accommodate future growth the modern ecommerce warehouse to enhance processes and reduce operating costs.

Yet it goes beyond that. We also understand how to enhance the different types of ecommerce warehouse functions to boost customer service and profitability. From design, supply, and installation to transforming your space into a smart warehouse with expert inspections and maintenance guidance, we can support every stage.

We’d be happy to visit your facility and provide a free, no-obligation appraisal, along with an accurate quote tailored specifically to your ecommerce business.