This article uses so many data to show us the value of warehouses. This inspire me to think about a question, what is the purpose of building warehouses? The answer is, to keep the companies’ inventories. Then what is the real value of inventories? Only just some goods that are waiting for sale or a part of asset on the balance sheet? Of course not, my analysis shows that well located inventories can help companies attract potential customers in this Internet ear.

Imagine you need a watch for tomorrow’s exam or a sinus rinser when you have a allergy. You searched on Amazon and it says the nearest seller is thousands kilometers away, you’ll probably spend half of a day to buy it in downtown instead of buying it online. In this way, online sellers lose a lot of chances to make a deal. 

So it is a great idea to have a company provide small amount storages and delivery service for those online sellers to help them spread their inventories to meet potential demand in different areas, this actually shorten the distance from sellers to consumers.

Source: http://www.economist.com/news/business/21610288-rise-e-commerce-has-set-boom-market-warehouses-stores-value?fsrc=email_to_a_friend