The success of e-commerce depends heavily on efficient warehousing. A scalable warehouse not only manages growing order volumes but also ensures faster deliveries, optimised operations, and cost savings. For businesses aiming to stay competitive, building a warehouse that can expand with demand is no longer optional; it’s essential. Hence, read this blog to understand how to build a scalable warehouse for e-commerce logistics.
Why is Scalability Important in E-commerce Warehousing?
- E-commerce warehousing is best for an evolving environment where order volumes can fluctuate rapidly. This could be due to seasonal sales, new product launches, or sudden spikes in customer demand. Compared to regular retail stores, online sellers need to handle a wide range of products (SKUs) and must be ready to process orders irrespective of time on short notice.
- If the warehouses are not built with scalable features, you may face issues storing the larger orders. Also, fixed shelves and narrow paths may constrain the flow of mobility of stocks, delaying the deliveries. It also leads to higher labour costs, poor use of space, and temporary, expensive fixes during busy times.
- A scalable warehouse solves this by using modular storage, flexible automation systems, and smart warehouse management software. These features allow the warehouse to adjust operations based on demand quickly. This means the business stays efficient and reliable, no matter how busy or slow things get, giving them a clear advantage in the competitive e-commerce world.
How To Build a Scalable Warehouse for E-Commerce Logistics
Here are the key steps involved in building a scalable warehouse:
- Start with a Smart Warehouse Design
The smart design starts with the modular layout,
- Opt for a Modular Layout
The modular layout of the warehouse is basic for scalability in e-commerce logistics. By integrating reconfigurable shelving, movable workstations, and adaptable aisles, operators can quickly adapt to changes.
This flexibility is ideal for:
- SKU Growth: When the number of Stock Keeping Units (SKUs) increases, modular warehouse layouts can be rearranged without pause in usage or reconstruction.
- Adding Automation: Prefabricated warehouses facilitate the seamless introduction of new robotics or automated equipment, such as conveyor belts or autonomous mobile robots.
- Seasonal Adjustments: Warehouse zones and storage can be rapidly reallocated to support order surges or promotional campaigns.
Compared to a traditional warehouse, a modular warehouse can minimise construction time by around 30% to 60%. The quality and process of pre-manufacture greatly impact this.
Ensure Vertical Scalability
Vertical space availability is crucial while constructing warehouses. Hence, you need to keep an eye on:
- High Bay Racking Systems: These allow densely packed storage at heights up to 18–50 feet, freeing up valuable ground space for active operations. These racks can also work with automation systems like Automated Storage and Retrieval Systems (AS/RS), which speed up item handling and increase throughput and inventory density.
- Multi-Tier Shelving: Multi-level aisle systems maximise usable storage, utilising the entire warehouse height. It’s great for manual picking and helps you store two or three times more items without needing more floor area. It makes full use of the vertical space inside the building.
- Mezzanine Floors: By including mezzanines, you can increase workspace and storage space with their intermediate levels. Mezzanines are highly customisable and can be designed to support various load requirements, accommodating both inventory and auxiliary operations, such as packing or office space.
This allows expansion without increasing the footprint.
- Site Selection: Strategic Considerations
A scalable warehouse must undergo construction considering its future use for transportation, delivery speed, accessibility to labour, and the ability to scale operations. It will all be achieved easily by prioritising the location of the site.
The following are the factors you need to consider while assessing the site:
Key Parameters:
| Factor | Consideration |
| Location | Proximity to NH corridors, logistics parks, railway sidings, and ports. Must allow efficient goods movement and adhere to IS 8091:2008 for plant/warehouse layout. |
| Proximity | According to standard warehouse grading, it should be within 30–50 km of major urban centers or primary fulfilment demand for last-mile efficiency. |
| Land Use Classification | Choose the land reserved for industrial/logistics purposes by following local development authorities and the Warehousing (Development and Regulation) Act, 2007. |
| Topography & Soil Type | Flat site is recommended. Soil should have an SBC (Safe Bearing Capacity) typically >10 T/m² (99 kN/m²) is preferred for heavy racks. (Based on NBC Part 6 and IS 16144:2014 for storage godowns) |
| Flood & Seismic Risk | Avoid flood-prone zones and high seismic hazard areas per NBC Part 6 and IS 1893. Elevate the plinth at least 450–600 mm above the highest recorded flood level |
| Infrastructure | Truck turning requires an access road that is at least 12-15 metres wide. Uninterrupted 3-phase electricity, purified water supply, and optical fiber connectivity, all as recommended by IS 8091:2008 and NBC. |
Consider Urban Micro-Warehouses
The success of an online retail business greatly depends on the speed of last-mile delivery. Your customer can be from anywhere. Thus, make proper use of micro-fulfilment centers. These are mainly intended to allow faster order processing and delivery. This way, you can easily meet your customer expectations.
Some of the Famous Urban Micro-Warehouse Hubs in India are:
- Bhiwandi in the Mumbai region
- Sriperumbudur in the Chennai region
- Chakan in the Pune region
- NH-48 Corridor in Delhi NCR
- Hosur in the Bangalore region
- Design Principles for Scalability
A scalable warehouse can be expanded with minimal cost or downtime. The following are the key parameters.
| Parameter | Updated Recommendation |
| Structural Grid | 12 m x 24 m grid is recommended for Pre-Engineered Buildings (PEB) to ensure column-free zones. |
| Clear Floor Height | Grade A warehouses: Minimum 11–13.5 m at eaves (per NBC 2016, group H occupancy). For mega-fulfilment centers, up to 14–25 m is possible. |
| Floor Load Capacity | 6–10 tons/m² or 58.86–98.1 kN/m² (Grade A, heavy-duty/high-bay racking and forklift traffic, as per NBC and WDRA guidance). Grade B: typically 4–8 tons/m² or 39.24–78.48 kN/m². |
| Dock Doors | 1 dock per 300–500 m² of gross leasable area (GLA); docks must be at 1.2 m plinth height for truck compatibility. |
| Roof Slope & Drainage | A 10–20% upward roof slope (as per NBC & BIS best practice) and leak-proof design with dual drainage (internal and external gutters) are essential. |
| Expansion Joints | Provide expansion joints in slabs and structural envelope at 30–40 m intervals (NBC 2016, Part 6 ‘Structural Design’, Section 7). |
- Construction Materials & Technology
Warehouse construction in India is now shaped by two major needs: sustainability and speed. This shift is driven by the rapid growth of e-commerce, changing market conditions, and the increasing need for efficient operations. The following are the recommended systems:
| Component | Preferred Technology | Key Benefit |
| Superstructure | PEB (Pre-Engineered Building) | Fast erection, long clear spans, adaptable to future expansion, lower waste |
| Flooring | FM2/DIN 18202 VNA (Laser Screed flooring) | High flatness is critical for VNA (Very Narrow Aisle) automation, heavy-duty traffic, and reduced wear |
| Walls | Insulated sandwich panels / Precast panels | Quick installation, superior insulation for temperature control, enhanced energy efficiency |
| Roofing | Standing seam metal roof (solar compatible) | Leak-proof, suitable for solar panel retrofits, long lifespan, fast installation |
| Lighting | Daylighting (skylights), LED, motion sensors | Reduces electricity cost, supports green warehousing, aligns with India’s energy benchmarks |
- Implement Warehouse Management System (WMS)
A Warehouse Management System (WMS) is important for any modern, progressive e-commerce warehouse. The core features of a scalable WMS are as follows:
- Real-Time Inventory Tracking: This system provides updates on inventory levels, locations, and movements instantly using barcoding or RFID. This improves transparency and reduces mistakes in stock counts.
- Batch and Serial Tracking: This system can track products by batch or serial number through the supply chain, helping with quality control and compliance.
- Slotting Optimisation: This system uses smart algorithms to assign the best storage spots, reducing travel time for pickers and speeding up order handling.
- Integration with Marketplaces & ERP: This system connects smoothly with sales channels and ERP systems. This keeps inventory and order data in sync, improves coordination between departments, and avoids manual errors.
Key Scalability Metrics Enabled by WMS
| KPI | Description |
| Order Accuracy Rate | Tracks the percentage of error-free orders fulfilled |
| Inventory Turnover | Measures how frequently inventory is sold/used and replenished |
| Picking Efficiency | Monitors units picked per hour or per labour unit |
| Cost per Order | Analyses total fulfillment cost per order, aiding cost control |
- Warehouse Automation & Layout Design
According to a McKinsey report, automation in warehouse operations can reduce costs by up to 30% and increase throughput by over 40%.
Zoning & Layout Elements:
A scalable and tech-ready warehouse should be designed with distinct zones, each tailored for workflow efficiency:
- Inbound: Dedicated receiving docks and staging areas support high-velocity goods intake and quality checks.
- Storage: High-density racking, shelving, or Automated Storage & Retrieval Systems (AS/RS) maximize space for dynamic SKU volumes.
- Packing Stations: Modular, tech-enabled workstations enable rapid picking, packing, and labelling.
- Outbound: Automated sortation and high-speed shipping lanes accelerate last-mile readiness.
- Amenities: Office zones, staff amenities, parking, and WMS/server rooms are essential for smooth, secure operations.
Automation is increasingly integrated from the outset; planning for at least 30% of future automation upgrades is now best practice, ensuring the layout remains flexible as technology evolves.
Automation Strategies:
| Automation Type | Use Case | Key Benefit |
| AS/RS | High SKU density, deep racking, 24/7 ops | Increases storage capacity & picking speed |
| Conveyor Belts | Automated sortation, pick-to-pack | Streamlines order flow, reduces manual handling |
| Pick-to-Light/ Voice | Order picking and fulfillment | Boosts accuracy, speeds up picking (99%+ accuracy possible) |
| Drones & AMRs | Inventory audit, intra-warehouse transport | Reduces audit time, supports real-time tracking |
- HVAC, Fire, and MEP Design in Warehouse
Warehouse engineering must comply with IS and NBC codes.
- Fire Protection (as per NBC 2016, IS 3594:1991, and IS 2190)
- Fire Exits & Doors: Specify the fire exits clearly at clear intervals of less than 30 m. Make sure the fire escape doors are fire-rated and open outward as required by NBC 2016, Part 4.
- Smoke/Heat Detection: Make sure your warehouse is equipped with smoke and heat detectors throughout the gross leasable area (GLA), as well as a monitored alarm system in accordance with IS 2189:1988.
- Sprinkler Placement: For warehouses with racking taller than 4.5m, sprinklers should be installed both in-rack and on the ceiling. According to IS 15105, there must be a 1-meter clear spacing between the highest storage and sprinkler.
- Drainage: By considering the fire accident scenarios, floors must include watertight construction with scuppers every 6 m (20 cm² min cross-section). This way, the structure can handle water discharge from the fire system. Don’t forget external drains of at least 25 cm width and 30 cm depth.
- MEP Considerations
- Power Supply: Provision of 3-phase power is standard. Grade A warehouses generally require 100–200 kW per acre as a basis, as they are essential to support lighting, material handling equipment (MHE), HVAC, and automation loads. It can be future-proof for increased electrical demand.
- Lighting: Energy-efficient LED lighting with occupancy sensors is recommended. NBC and industry benchmarks advise 150–200 lux minimum in aisle areas, with daylighting where possible.
- Security: 24×7 CCTV coverage and electronic access controls for all critical points are standard for asset and personnel safety.
- Sanitation & Sustainability: Sewage Treatment Plants (STP) and Rainwater Harvesting systems are essential, adhering to Pollution Control Board (PCB) guidelines and local environmental regulations.
- Water Storage: Large on-site water tanks for fire-fighting must meet flow and pressure requirements specified in IS 15105 and NBC Annexures (e.g., 225 litres/minute at 2.2 bar for sprinklers).
Scalability Planning: Vertical & Horizontal
Designing a warehouse with scalability in mind for future demands – expert support. By considering expansion strategies at the initial stage, you can reduce future consequences or disruptions, thereby maintaining operational continuity.
You can consider the following techniques to enable both vertical and horizontal scalability:
Phased Construction:
- Develop the warehouse in planned phases. Start with a core build (e.g., Phase 1: 1 lakh sq.ft), then expand (e.g., Phase 2: 1.5 lakh sq.ft) as operational needs grow. This approach optimises capital allocation and reduces early-stage overspending.
Modular Utility Grids:
- Design modular networks for MEP (mechanical, electrical, plumbing), firefighting, and IT conduits. Modular utilities ensure new zones or floors can be rapidly connected without overhauling the core infrastructure.
Oversized Plinth Beams & Columns:
- During the initial phase, install structural plinth beams and columns rated for future vertical additions (e.g., mezzanine floors), supporting higher load capacities and minimising downtime for structural upgrades.
Stackable Racking & AS/RS Compatibility:
- Adopt racking systems that maximise vertical storage and are compatible with future Automated Storage and Retrieval Systems (AS/RS), providing efficient storage expansion without increasing the warehouse footprint.
Advance Zoning Permits:
- Secure zoning clearance for all planned expansion phases at the outset. Obtaining permits in advance avoids regulatory delays during critical growth periods and ensures hassle-free scale-up.
Legal & Regulatory Approvals for Warehouse Construction
| Approval | Issuing Authority | Key Details |
| Building Plan Sanction | Local Urban Local Body/Development Authority (e.g., DTCP, CMDA, BDA, DDA, MMRDA, HMDA, etc.) | All new/modified construction; eDCR is used in some states. |
| Fire NOC (No Objection Certificate) | State Fire and Emergency Services Dept. | Mandatory for plan approval and occupancy; renewed periodically. |
| Environmental Clearance | State Environmental Impact Assessment Authority (SEIAA) or MoEFCC | Required if built-up area >20,000 m² per EIA Notification, 2006. |
| Pollution Consent (CTE/CTO) | State Pollution Control Board (SPCB) | Consent to Establish (CTE) before construction; Consent to Operate (CTO) before operation; includes sewage, STP, air and noise. |
| Factory License (if manufacturing or deemed factory) | State Labour/Labour Commissionerate & Directorate of Factories | Needed if classified as a factory under the Factories Act, 1948 (labour>10 with power, >20 without). |
| Trade/Shop Establishment License | Municipal Corporation/Municipality | Mandatory for operation and employment compliance. |
| Electrical Safety Clearance | State Electrical Inspectorate | Required before energizing new installations. |
| Occupancy/Completion Certificate | Local Development Authority/Urban Body | Issued after final inspection to certify legal completion. |
Pro tip: Hire an experienced architect or construction company with online portal access (e.g., eDCR in TN, Akrama-Sakrama in Karnataka).
Sustainability & ESG Compliance for Scalable Warehouse
These days, green warehouses are gaining increasing attention in the industry. Large e-commerce companies and international investors consider this in their checklist, as these structures adhere to for their environmental, social, and governance (ESG) credentials. By gaining a LEED or IGBC Gold certification, warehouse buildings prove their excellence in terms of green performance, covering energy, water, and material efficiency.
Key green strategies for the warehouse include,
- Solar Panels: Installing solar modules on pre-engineered building (PEB) roofs supplies 2–5 kW per 1,000 sq. ft, meeting significant operational loads and cutting emissions.
- EV Charging Docks: Equipping sites for electric vehicle fleets supports sustainable transport and future-proofs logistics operations.
- Skylights: By including skylights at the proper spot maximises daylight flow, reducing artificial lighting needs and enhancing worker well-being.
- STP & Greywater Recycling: Onsite Sewage Treatment Plants (STPs) enable recycling of greywater for landscaping and toilet flushing, reducing freshwater use and supporting zero-discharge ambitions.
Conclusion
The construction of a scalable warehouse for e-commerce logistics requires a thoughtful combination of engineering precision, real estate expertise, and forward-looking planning. You can achieve this by hiring an expert construction company, Brick & Bolt. Their Quality Assessment System (QASCON) ensures over 470 quality checks throughout the project. With an escrow payment mechanism, your funds are safe and only released when milestones are met. Brick & Bolt takes total ownership of the project, promising on-time delivery with no hidden charges. Using advanced 3D modeling and tech-enabled platforms, you can track construction progress and view your warehouse virtually before it is built.