Rahul ran a small fashion business in Bengaluru. Every festival season, his studio-warehouse overflowed: cartons blocking aisles, orders delayed, and staff scrambling. Renting a full warehouse felt too big a gamble; sticking with his cramped studio meant risking reputation. Then he tried shared warehousing—with just the space he needed, when he needed it. Orders got out on time. His costs dropped. Stress eased.
If you’re an SME or an e-commerce seller in a metro like Mumbai, Delhi, Chennai, or Bengaluru, Rahul’s story probably sounds familiar. Shared warehousing could be the leap your business needs. But it’s not perfect for everyone. Before you commit, here’s what to know.
What’s Driving the Rise of Shared Warehousing in Metros
- In 2024, India saw about 56.4 million sq. ft. of warehousing transactions across its eight key metro markets—Mumbai led with over 10 million sq. ft. leased.
- Warehouse stock in metros (Grade A & B) grew by ~15% year-on-year in top eight cities during 2023.
- Metros now hold ~60% of India’s modern warehousing capacity, concentrated in cities like Ahmedabad, Bangalore, Chennai, Delhi, Mumbai, and Pune.
Those numbers show two things: demand is surging, and supply is catching up. But what this means for you is opportunity—with caveats.
Advantages of Shared Warehouse Space for SMEs & E-Commerce Sellers
| Benefit | Why It Helps You |
| Lower Fixed Costs | You avoid full-warehouse rent, major upfront facility costs. Pay only for the space & services you use. |
| Flexibility & Seasonal Scaling | Festival, sale, or flash-deal peaks? You can scale up. Lean months? You scale down. |
| Access to Better Tools & Infrastructure | Many shared warehouses in metros offer climate control, security, CCTV, inventory tracking systems, even labour for packing/fulfilment. |
| Fast Last-Mile Delivery Option | Metro shared warehouses are often better located—closer to urban transport routes—reducing lead times. |
| Reduced Admin Overload | If provider does receive, returns, dispatch, you free up time to focus on marketing, product, customer experience. |
What You Should Watch Out For
- Limited customisation: You may not get a layout tailored to your specific product shape, shelf layout, or special requirements.
- Shared risk: Damages, mix-ups, or delays might happen if the facility handles many different clients.
- Service variability: Quality and reliability may dip during peak demand. The staff or resources could get stretched.
- Contracts & hidden costs: There could be minimum volume commitments, “idle space” charges, or costs for extra handling that aren’t obvious up front.
What to Check Before You Commit
- Service Level Agreements (SLAs): What uptime, handling times, error rates are guaranteed?
- Technology & Inventory Tracking: Can you monitor stock in real time? What tools are used?
- Location vs Delivery Regions: A metro warehouse far from your major customer cluster may still cost more in delivery than you save.
- Flexibility Terms: How seasonal demand is handled; can you increase or decrease space month-to-month?
- Transparency on All Costs: Handling, packing, returns, security, insurance, any overtime or “urgent” surcharges.
- Speak with Current Users: Someone else using the shared space might reveal pain points you won’t find in a brochure.
Case Example: How Shared Warehousing Helped a Delhi-Based SME Flourish
Company: A beauty-products e-brand in Delhi dealing with high returns and fragile items.
Before: They rented a small standalone warehouse on the outskirts, had to maintain their own staff all year, and faced high storage + wastage costs during non-peak months.
After moving to shared warehousing in a Grade-A facility closer to the city:
- Reduced overhead (rent + utilities + labour)
- Improved fulfilment speed by 1-2 days
- Lowered damages during handling because of better packing stations and trained staff
- Freed up capital to invest in marketing and product development
Is Shared Warehousing Right for You?
If most of these are true:
- Your inventory volume fluctuates greatly
- Speed & reliability of delivery matter a lot to your customers
- You don’t want to deal with facility management complexities
- You operate in or ship to metro areas
Then shared warehouse might be a strong fit.
If instead you:
- Have extremely specialised storage needs (cold chain, pharma)
- Can guarantee consistent high volume year-round
- Need complete control over layout or workflow
Then a private or dedicated facility might still make sense.