The internet and e-commerce are driving a revolution in retail. Therefore, changing the nature of warehouse as we may know. In retail, logistics is an important arm that keeps the retail industry running smoothly. Warehouses and distribution hubs were located in remote areas, where costs of labour, land and taxes were low. Thanks to the demand of e-commerce, which is growing very rapidly in this century, warehouses have evolved into technology-rich logistics facilities.
According to e-Marketer and Prologis Research, by 2020, total sales from online retailers is expected to double to $4 trillion, which accounts for 15 percent of total sales in the retail industry. This being said, eCommerce warehouses and storages are starting to assume functions of stores. This is due to an increasing number of retailing activities starting to happen inside distribution centers.